Upbeat earnings from Netflix injected some optimism into markets
Stocks continued to strengthen on Wednesday as investors gained some confidence over the current earnings season, bolstered by an upbeat report from streaming giant Netflix (NFLX). The Dow struggled near its breakeven before eventually settling the day with a 47-point win, while the S&P 500 also extended its gains to a second day, and the Nasdaq added on another triple-digit pop.
Tech, overall, had a strong day, with fellow streaming stocks getting a halo lift, and semiconductor stocks also staging a bounce. A Bank of America survey that suggested the recent selloff could pose an opportune time for investors to buy also buoyed sentiment on Wall Street, helping traders brush off a drop in mortgage demand to 22-year lows. Meanwhile, the Cboe Volatility Index (VIX), better known as Wall Street's "fear gauge," dropped to its lowest settlement since April 21.
Continue reading for more on today's market, including:
- This computer hardware stock could be on track for even more record highs.
- The competition warning that sent Biogen stock lower.
- Plus, MCD gears up for earnings; everything you need to know about SIX; and why CPB is a top pick.
The Dow Jones Average (DJI - 31,874.84) gained 47.8 points, or 0.2% for the day. Salesforce (CRM) led the gainers, adding nearly 5%. Merck (MRK) paced the losers, shedding 2.9%.
The S&P 500 Index (SPX - 3,595.90) added 23.2 points, or 0.6% for the day. Meanwhile, the Nasdaq Composite (IXIC - 11,897.65) rose 184.5 points, or 1.6% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 23.88) lost 0.6 point, or 2.5% for the day.
5 Things to Know Today
- Twenty-three Democratic lawmakers, including Senator Elizabeth Warren, are urging the IRS to create its own free tax filing service, though several tax professionals call the plan unrealistic for the already overburdened agency. (CNBC)
- President Joe Biden is expected to unveil a number of executive actions in response to climate change, after his initial and more ambitious bill failed. (MarketWatch)
- What you need to know ahead of McDonald's earnings report.
- The theme park concern for bulls to keep an eye on right now.
- Why now might be the perfect time to snag shares of Campbell Soup.
Gold Prices Hit Lowest Settlement Since March 2021
Oil snapped its three-day win streak after a report from the U.S. government saw a small drop in domestic crude supplies for the week, and a rise in inventories by 3 million barrels. August-dated crude lost $1.82, or 1.8%, to finish at $101.44 per barrel for the day.
Gold prices dropped today, hitting their lowest settlement for a most-active contract since March 30, 2021, weighed on by a resurgence in the U.S. dollar. August-dated gold shed $10.50, or 0.6%, to close at $1,700.20 an ounce.