30 C
Wednesday, October 4, 2023

US Stocks: Tesla, Netflix Push Nasdaq and S&P Lower, Dow Ends Higher

NEW YORK – The S&P 500 and Nasdaq fell on Thursday, weighed down by falls in Tesla and Netflix after their quarterly results, but the Dow rose for a ninth straight day on gains from Johnson & Johnson after a strong full-year forecast.
Tesla shares fell 9.74%, their biggest one-day percentage drop since April 20, after the electric vehicle maker reported a drop in its second-quarter gross margins to a four-year low and CEO Elon Musk hinted at more price cuts.
Netflix plunged 8.41% to suffer its biggest one-day percentage drop since December 15, after the video streaming company’s quarterly revenue missed estimates.
“Last night’s news on Tesla and Netflix, while not the end of the world, gives people a reason to wake up and say ‘wow, maybe I shouldn’t be chasing these names here,'” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
“Let me take some money off the table and redistribute it to big, boring names.”
The Dow, however, was able to rise as Johnson & Johnson gained 6.07% after reporting results and announcing an annual earnings forecast increase.
The Dow Jones Industrial Average rose 163.97 points, or 0.47%, to 35,225.18, the S&P 500 lost 30.85 points, or 0.68%, to 4,534.87 and the Nasdaq Composite fell 294.71 points, or 2.05%, to 14,063.31.
The Nasdaq’s decline was its biggest one-day percentage drop since March 9, while the Dow posted its ninth straight session of gains, its longest winning streak since September 2017.
The Nasdaq is up 34.4% this year to levels not seen since early April 2022, supported by a seemingly unstoppable rally in mega-cap growth names like Nvidia and Meta on optimism about the potential of artificial intelligence, a US economy.
The S&P technology, communication services and consumer discretionary sectors each fell at least 2% on Thursday.
Technology stocks came under additional pressure after enterprise software maker SAP cut its full-year outlook for cloud revenue. US-listed SAP shares closed down 6.34%.
Economic data on Thursday indicated that the labor market remains tight, while the housing and manufacturing sectors continue to decline.
United Airlines advanced 3.23% after improving its full-year earnings outlook and posted its highest-ever quarterly earnings on booming demand for international travel.
With 77 S&P 500 companies reporting results as of Thursday morning, second-quarter earnings are expected to have declined 7.9%, Refinitiv data showed, more than the 5.7% drop expected earlier in the month.
Volume on US exchanges was 11.16 billion shares, compared with an average of 10.6 billion for the full session over the past 20 trading days.
Issues going down outnumbered going up on the New York Stock Exchange by a ratio of 1.53 to 1; on Nasdaq, a 1.88-to-1 ratio favored decliners.
The S&P 500 posted 32 new 52-week highs and 2 new lows; the Nasdaq Composite posted 67 new highs and 71 new lows.

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles