Connect with us

Hi, what are you looking for?

Stock

Wall Street Opens Lower as Netflix Shock Dents Growth Narratives; Dow Down 50 Pts

Stock Markets29 minutes ago (Apr 21, 2021 09:42AM ET)

(C) Reuters.

By Geoffrey Smith

Investing.com — U.S. stock markets opened lower on Wednesday with tech stocks underperforming after a disappointingly weak quarter from Netflix (NASDAQ:NFLX) shook some complacency out of the confidence in growth-oriented tech stocks.

Netflix said its subscriber growth in the first quarter was well below estimates at 4 million, and said it expects that to slow to only 1 million in the second quarter as the pandemic-fueled surge in new customers fades.

The Nasdaq Composite fell 0.4% to test a two-week low. The Dow Jones Industrial Average fared a little better, rising 53 points, or 0.2%, to 33,875 points. The S&P 500 was down 0.2%.

Tesla (NASDAQ:TSLA) was one of the stocks to suffer indirectly from the Netflix effect. Assumptions of rapid growth as far as the eye can see have been challenged this week by hints that Beijing could obstruct its sales in China, after a carefully-orchestrated ‘viral’ protest against its alleged quality shortcoming at an auto salon. The stock fell 2.2%.

Netflix was one of the undisputed winners of the pandemic, which accelerated a secular trend toward streaming (which the company said last night is still very much intact) and closed off many alternative forms of entertainment. Other stocks that profited from analogous trends in their sectors also weakened on Wednesday on concerns that what the pandemic granted will be taken away by economic reopening. Peloton Interactive (NASDAQ:PTON) stock, under pressure this week due to a dispute with regulators over product safety, fell another 3.0%.

Verizon (NYSE:VZ) stock was another to have its growth estimates reassessed after a quarter in which it lost more mobile customers than analysts expected, a further sign that the merger of Sprint and T-Mobile has seriously affected its competitive position. The stock fell 0.1%.

Halliburton (NYSE:HAL), Baker Hughes (NYSE:BKR) and Nextera Energy (NYSE:NEE) stocks also all fell after disappointing quarterly updates, the oilfield services companies falling 5% and to a two-month low, and by 1.6% to a four-month low, respectively, while the renewables specialist fell 2.0%.

Wall Street Opens Lower as Netflix Shock Dents Growth Narratives; Dow Down 50 Pts

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved