Netflix in free fall: Wall Street rally loses momentum

Netflix in free fall
Wall Street rally loses momentum

After the optimism of the previous day, the euphoria about the start of the accounting season in US stocks is fading a bit. The Dow Jones closes in positive territory, technology stocks are less in demand. After devastating subscriber loss numbers, Netflix stock continues to plummet.

Wall Street was mixed midweek after US stock markets posted strong gains the day before. However, little has changed in the generally unstable market environment. In addition to the war in Ukraine, high inflation and high market interest rates are the determining factors. Of the Dow Jones Index closed 0.7 percent higher at 35,161 points, the S&P 500 noted 0.1 percent lighter. The tech-heavy Nasdaq Composite fell 1.2 percent. Investors focused on the reporting season, which is in full swing. Here the question arises whether companies were able to pass on their increased costs to end users.

“We live in a year of higher inflation and that will create problems for some companies,” said Luc Filip, chief investment officer at SYZ Private Banking. “What we are trying to assess is the pricing power of a company, some will find their profitability under pressure if they don’t have it,” Filip said.

Netflix
Netflix 205.00

I already have the night before Netflix Y IBM presented its quarterly figures. Netflix’s streaming service posted a global decline in the number of users in the first quarter and expects further declines. The company suffered from tougher competition. With the number of clients declining, the company clearly missed its own growth forecast. The stock fell 35 percent.

at the IT specialist IBM (+7.1%) business figures were better than estimated. Revenue increased to $14.2 billion (previous year: $13.19 billion). Revenue growth was primarily driven by 14% growth in hybrid cloud platform sales.

Procter & Gamble Co. (+2.7%) recorded the strongest organic sales increase in at least twenty years with 10 percent in the last quarter. Consumers spent more on household items like Pampers diapers and Gillette razors despite inflation and the looming recession.

Procter & Gamble
Procter & Gamble 151.00

For the actions of Lululemon Athletica It fell 4.8 percent after the yoga wear supplier set an ambitious goal: By 2026, the company wants to double its sales to $12.5 billion.

Abbott Laboratories benefited from her corona tests in the first trimester. The diagnostic company significantly increased profits and sales. It also raised its guidance for full-year coronavirus test sales but lowered its earnings outlook. The stock rose 2.2 percent.

American stock trader nasdaq (-4.6%) earned less in the first quarter despite revenue growth. The dividend should still increase, and the group also announced a stock split. Business figures for Tesla, Alcoa and United Airlines are only expected after the close of business.

Bond Yields Come Back: Dollar Falls

In it bond market Yields fell more significantly after recently rising sharply on expectations of a rise in key interest rates. The 10-year yield fell 7.4 basis points to 2.84 percent.

In the foreign exchange market, the dollar weakened as market interest rates fell. Of the dollar index lost 0.5 percent.

after the oil prices Having fallen sharply the day before on concerns about global oil demand, the trend is now little changed. US crude oil inventories unexpectedly and significantly decreased in the week ending April 15. Data from the private American Petroleum Institute (API) had already registered a decline in the last week. On the other hand, there was concern about demand. According to a BBC report, Germany wants to stop Russian imports by the end of the year.

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