Skip to main content

Stocks Rebound From 2-Day Drop; Nasdaq Up Despite Netflix Tumble

Stocks end higher with the Nasdaq shaking off a tumble in Netflix shares.

Stocks finished higher Wednesday, snapping a two-day losing streak, as investors turned toward shares in the materials and industrials sector.

The Nasdaq posted a sharp gain, shaking off a tumble in Netflix  (NFLX) - Get Netflix Inc. Report following a subscribers miss for the streaming giant.

Jim Cramer: I Laugh When I Hear That FAANG Stocks Are Dead

The Dow Jones Industrial Average finished up 316 points, or 0.93%, to 34,137, the S&P 500 rose 0.93% and the Nasdaq was up 1.19%.

The S&P 500 rose for the first time in three sessions. Equities have been pressured by rising coronavirus cases across the globe, particularly in Asia and South America. The spike in the virus has renewed concern about fresh lockdowns and how they affect the economic recovery.

Stocks in Tokyo declined more than 2% on Wednesday as a resurgence of coronavirus cases led to restrictions on travel and dining.

The yield on the benchmark 10-year Treasury bond edged higher to 1.57% Wednesday. Investors adopted a cautious stance on risk as infections surged more than 15 months into the pandemic.

Scroll to Continue

TheStreet Recommends

Corrective Action Is Spreading

Netflix ended down 7.4% at $508.90 on Wednesday after the streaming giant added fewer subscribers in the first quarter than Wall Street expected.

Netflix said it added 3.98 million subscribers in the quarter, below forecasts of 6.34 million and internal company estimates of 6 million. 

The first quarter a year earlier was the strongest in company history: Netflix had added 15.8 million new customers as people were forced by the pandemic to stay home and turned to the TV for entertainment.

For the second quarter, Netflix said it expects 1 million new customers, far below the 4.2 million analysts projected.

Verizon Communications  (VZ) - Get Verizon Communications Inc. Report posted stronger-than-expected first-quarter earnings and reiterated its full-year profit forecast. 

But the telecom giant said it lost 178,000 monthly wireless subscribers to newer offerings from rivals such as AT&T  (T) - Get AT&T Inc. Report and T-Mobile  (TMUS) - Get T-Mobile US Inc. Report. Verizon shares finished off 0.5% at $58.12.