US stocks pop as Netflix results shine

Live5 updates

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  Wed, January 24, 2024 at 10:34 AM MST

  Nasdaq pops more than 1%

  The tech-heavy Nasdaq Composite (^IXIC) led mid-afternoon gains on Wednesday with the index soaring about 1.2%, or nearly 200 points.

  The moves come on the heels of strong earnings from Netflix (NFLX) while tech giants including Meta (META), Microsoft (MSFT), and Google (GOOGL) added to the AI-fueled rally.

  The S&P 500 (^GSPC), meanwhile, climbed 0.7% in afternoon trading as it eyes yet another record close. The Dow Jones Industrial Average (^DJI) rose about 0.3%, or more than 100 points.

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  Wed, January 24, 2024 at 9:44 AM MST

  Big tech boom

  It’s a good day to be a tech stock.

  Meta (META) shares climbed about 2% to trade above $390. The strong moves propelled the stock to a $1 trillion market cap for the first time since 2021 as the tech giant extends its recent rally following Mark Zuckerberg’s “year of efficiency.” The stock is up more than 10% year-to-date.

  Microsoft (MSFT), meanwhile, climbed above 1% to briefly surpass a $3 trillion market cap. It’s only the second company to hit that level, following Apple (AAPL). Shares of Microsoft have climbed roughly 7% since the start of the year

  Alphabet (GOOGL) joined in on the fun, as well. The parent company of Google is on its way to a record close after the stock climbed above 1% in intraday trading to surpass its all-time closing high for the first time in more than two years.

  The Nasdaq Composite (^IXIC) led the broader market gains on the heels of these moves — up nearly 1%, or about 150 points.

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  Wed, January 24, 2024 at 9:00 AM MST

  Earnings, earnings, earnings

  It’s a busy week for corporate earnings with 74 companies reporting this week, representing 15% of the S&P 500.

  According to Fundstrat, 66% of firms are beating estimates, and those that “beat” are beating by a median of 7%. Of the 31% missing, those are missing by a median of -12%.

  On the top line, overall results are beating estimates by a median of 2% and missing by a median of -2%, and 62% of those reporting are beating estimates, the research firm added.

  A big report on the docket for Wednesday is Tesla (TSLA), which has seen shares fall about 15% since the start of the year. As Yahoo Finance’s Pras Subramanian reports, the EV maker is expected to post a year-over-year drop in profitability due to downward pressure on margins amid cost-cutting efforts.

  The results come on the heels of an especially positive report from Netflix (NFLX), which reported strong growth numbers in the fourth quarter.

  The streaming giant added 13 million new subscribers, in addition to offering Q1 guidance that beat Wall Street’s expectations. Shares surged double digits in early market trading. Check out the full earnings recap here.

  In another earnings win, Dutch chipmaker ASML (ASML) reported orders tripled in the quarter from the previous three months, a positive sign for the semiconductor industry. Shares climbed about 7%.

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  Wed, January 24, 2024 at 8:17 AM MST

  US economic output hits 7-month high

  Economic output hit its highest level in seven months during January.

  S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 52.3 in January, up from 50.9 in December and better than the 51.0 that had been expected by economists.

  S&P reported business confidence reached a 20-month high while prices charged, a measure of inflation, rose at its slowest pace since May 2020. The manufacturing index saw the largest increase with a reading of 50.3 up from 47.9, the month prior. The services component of S&P’s report showed the index registered 52.9 this month, up from 51.4 in December.

  Any reading above 50 for these indexes represents expansion in the sector; readings below 50 indicate contraction.

  “An encouraging start to the year is indicated for the US economy by the flash PMI data, with companies reporting a marked acceleration of growth alongside a sharp cooling of inflation pressures,” Chris Williamson, the chief business economist at S&P Global Market Intelligence, said in the release.

  

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  Wed, January 24, 2024 at 7:33 AM MST

  Markets open higher as S&P heads for another record high

  Stocks opened higher on Wednesday with the S&P 500 (^GSPC) on pace to achieve another record close.

  The benchmark index added 0.6%, building on the new closing high hit on Tuesday, while the Dow Jones Industrial Average (^DJI) rose about 0.4%, or nearly 150 points.

  The Nasdaq Composite (^IXIC), buoyed by Netflix’s strong results, surged about 0.9% as tech stocks once again take center stage with Tesla results on tap after the bell.