Closing Bell: Stocks Fall Flat After Rally, Netflix Sinks, Brexit Ratified
U.S. markets rebounded slightly Wednesday before falling back to near zero and more in Wednesday’s Closing Bell on Money and Markets.
The Top Story
Shares of streaming giant Netflix Inc. (Nasdaq: NFLX) were down more than 3.5% in Wednesday afternoon trading after subscriber growth missed company projections.
Netflix reported adding 550,000 new subscribers in the U.S. and Canada — under the 589,000 the company had projected.
The company previously reported beating revenue projections.
“The 1Q miss for the guidance was bigger than the 4Q beat, and I think that that, combined with expectations, clients that we’ve spoken to have gotten long the stock after being short it in the summer, so I think those two combinations are why you’re seeing the stock (moves),” Bernie McTiernan, internet and media analyst at Rosenblatt Securities told CNBC.
Money and Markets: Closing Bell*
S&P 500: 3,321 (+1 point, +0.03%)
DOW: 29,186 (-9 points, +0.03%)
NASDAQ: 9,383 (+12 points, +0.1%)
GOLD: $1,558.90 (+1.10, +0.07%)
BITCOIN: $8,638.29 (-105.67, -1.2%)
U.S. 10-YEAR YIELD: 1.76%
*- as of 4:15 p.m.
A Big Win
We also told you about Tesla Inc. (Nasdaq: TSLA) going over the $100 billion market cap mark. Tesla shares rose 4% Wednesday afternoon.
Equity firm Summit Partners has invested in cloud-based clinical data software company eClinical Solutions LLC. Financial terms of the investment were not disclosed.
Tencent Holdings Ltd. has offered to buy Norwegian game developer FuncomNV for $148 million. The offer is a 27% premium to Tuesday’s closing price of Funcom in Oslo.
Even with an equities market upswing, precious metals changed only slightly in afternoon trading Wednesday.
Gold prices rose just $1.10 an ounce to $1,558.90. Silver rose slightly to $17.79 an ounce while platinum was up $14 to $1,012 an ounce. Palladium moved back over $2,300 to $2,358 an ounce.
Cannabis stocks remained mixed Wednesday.
Cronos Group Inc. (Nasdaq: CRON) and Aurora Cannabis Inc. (NYSE: ACB) rose Wednesday.
Stock Market Update
U.S. equities markets were mixed Wednesday.
The Dow Jones Industrial Average fell 9 points, or 0.03% to 29,186. The S&P 500 nudged up 0.03% while the Nasdaq Composite rose 0.1%.
In other news, Boeing Co. (NYSE: BA) CEO Dave Calhoun said he wants to resume production of the 737 Max before federal regulators clear the aircraft. Boeing stopped production of the jet earlier this month.
Sources told CNBC on Tuesday that approval may not come until June or July — months longer than Boeing anticipated.
Both General Electric Co. (NYSE: GE) and Spirit AeroSystems Holdings Inc. (NYSE: SPR) are suppliers to Boeing and have felt the ripple effect of the halt in production.
Shares of Boeing fell 1.4%.
Across the pond, the U.K. Parliament ratified Prime Minister Boris Johnson’s Brexit deal, leaving the final vote to the European Parliament. Later in the day, the House of Lords dropped its opposition to the divorce bill, clearing the way for Queen Elizabeth II to sign the bill into law.
Today’s Big Winners:
Capital One Financial Corp. (NYSE: COF) +4.4%
Ball Corp. (NYSE: BLL) +3.7%
Tesla Inc. (Nasdaq: TSLA) +4%
IBM Corp. (NYSE: IBM) +3.3%
Intel Corp. (Nasdaq: INTC) +3.6%
Today’s Big Losers:
Mosaic Co. (NYSE: MOS) -5.3%
Northern Trust Corp. (Nasdaq: NTRS) -3.3%
CF Industries Inc. (NYSE: CF) -3.4%
Netflix Inc. (Nasdaq: NFLX) -3.5%
Boeing Co. (NYSE: BA) -1.4%
Check back for the most important news and numbers each day after the Closing Bell, only on Money and Markets.
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