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S&P, Nasdaq get Netflix boost; Dow dragged by J&J, Procter

Posted by: Admin | Posted on: January 23rd, 2018 | 0 Comments

NEW YORK (Reuters) – U.S. stocks advanced on Tuesday, as strong results from Netflix helped lift the SP and Nasdaq Composite, but declines in Johnson Johnson and Procter Gamble kept the Dow Industrials in check.

Netflix touched a record high of $257.71 and was last up 9.98 percent at $250.30, to cross the $100 billion market value threshold after the video-streaming pioneer beat Wall Street targets for new subscribers in the fourth quarter.

Other stocks, known as part of the “FAANG” – Facebook, Apple, Amazon and Google parent Alphabet – also moved higher.

Insurer Travelers provided the biggest boost to the Dow, up 5.32 percent after the company’s profit topped estimates.

“Generally we like the trend of earnings, we think they will continue to be good and our forecasts for the rest of the year look good,” said Mike Baele, managing director at U.S. Bank Private Client Wealth Management in Portland, Oregon.

“It is not surprising the market is taking comfort in these good numbers.”

SP 500 earnings growth for the fourth-quarter is expected at 12.4 percent, according to Thomson Reuters data through Tuesday morning. Of the 68 companies in the benchmark index that have posted results, 76.5 percent have topped Wall Street expectations.

The Dow Jones Industrial Average fell 17.21 points, or 0.07 percent, to 26,197.39, the SP 500 gained 4.38 points, or 0.15 percent, to 2,837.35 and the Nasdaq Composite added 41.32 points, or 0.56 percent, to 7,449.36.

Johnson Johnson fell 3.91 percent, dragged down by a $13.6-billion charge related to the new U.S. tax law and a court ruling on a crucial patent on its blockbuster rheumatoid arthritis drug Remicade.

Procter Gamble dropped 3.25 percent as investors focused on a drop in gross margins at the world’s largest consumer goods maker.

U.S. President Donald Trump on Monday approved steep import tariffs on washing machines and solar panels, a move that was criticized by China, South Korea and Europe and stoked fears about potential retaliation.

In the wake of the tariffs, shares of Whirlpool rose 3.43 percent and smaller solar names such as Real Goods Solar, up 28.70 percent and Sunworks, up 7.26 percent, moved higher.

Verizon edged higher, up 0.07 percent as its quarterly profit fell short of Wall Street estimates but revenue beat expectations as it added phone subscribers.

Advancing issues outnumbered declining ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored advancers.

The SP 500 posted 132 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 208 new highs and 14 new lows.

Reporting by Chuck MikolajczakEditing by Chizu Nomiyama

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