December 9, 2022

Raven Tribune

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The Nasdaq is down slightly after a two-day rally despite strong earnings from Netflix and United Airlines

The Nasdaq is down slightly after a two-day rally despite strong earnings from Netflix and United Airlines

The Nasdaq Composite Index fell on Wednesday as Wall Street struggled to extend its rally despite another strong boost from corporate earnings.

Technology heavy index fell 0.8%. The S&P 500 fell about 0.5%. The Dow Jones Industrial Average changed little.

The moves came even as Netflix shares surged 11% after the streaming giant Reported earnings and revenue that beat estimates and strong subscriber growth for the third quarter. United Airlines stock rose 4.6% after it also beat estimates in the top and bottom rows.

The strong start to earnings season comes as many on Wall Street have reset their earnings forecasts lower, and investors are becoming concerned about a recession. Although stocks rose in the first two days of the week, Treasury yields were still high and were on the rise on Wednesday, indicating that recession fears remain.

The 10-year Treasury yield jumped 4.09% on Wednesday.

“On the plus side, corporate earnings season may help investor confidence somewhat, just given the current oversold conditions and lower expectations. That should help stocks maintain their foothold, but until we see 2-year and 10-year returns begin to decline. “Investors should remain wary of expecting too much of this rally,” said Nick Colas of DataTrek Research, DataTrek Research.

Among the biggest losses on the Nasdaq were Chinese technology stocks JD.com and Pinduoduo, both of which fell more than 5%. Abbot Labs was one of the worst performers in the S&P 500, down nearly 6%.

Tech earnings will be in full swing next week, but IBM and Tesla are about to announce on Wednesday. Social media company Snap will report back later in the week.

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In economic data, investors are looking forward to housing starts on Wednesday. It will also release the so-called “Beige Book” of the Federal Reserve, which is the central bank’s report on the current state of economic conditions.

Wednesday’s moves came after another strong day for stocks, with the Dow Jones climbing nearly 337 points on Tuesday, and the S&P 500 up 1.1%.