Here Are Three Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI rose 0.22% on Tuesday. The blue-chip index has closed higher for 10 of the past 12 sessions.
- Netflix Inc. (NFLX) - Get Report pared losses, falling 5% after the streaming giant missed estimates on subscriber growth.
- Goldman Sachs Group Inc. (GS) - Get Report smashed earnings estimates and appointed David Solomon as CEO. Shares fell 0.48%.
Wall Street Overview
Stocks were mixed on Tuesday, July 17, as Federal Reserve Chairman Jerome Powell engages in his first testimony before Congress.
Powell told lawmakers that the tax reform bill signed into law last year will provide "meaningful support (for the GDP) for the next two to three years." The new head of the Fed also advocated for open trade agreements, asserting that countries that are open to trade tend to do better historically.
"For the first time, we have twelve months of core inflation being at 2%," says Powell. "We want inflation to remain around 2%. Our monetary policy is designed to help us achieve that."
Netflix Inc. (NFLX) - Get Report fell about 5%, paring earlier losses of more than 9%, after the streaming giant missed estimates on subscriber growth. Many analysts see subscriber growth as the key to Netflix's long-term dominance as it chases international markets and spends heavily on content and marketing.
Netflix added only 670,000 U.S. subscribers and 4.47 million internationally this quarter -missing projections of 1.2 million and 5 million, respectively.
- Why Netflix's Weak Subscriber Numbers Are Particularly Worrisome to Analysts
- Netflix Tanks on Disappointing Subscriber Numbers: 7 Key Takeaways
Despite the early outage, Amazon said that "in the first hour of Prime Day in the U.S., customers have ordered more items compared to the first hour last year."
Goldman Sachs Group Inc. (GS) - Get Report reported second-quarter profit of $5.98 a share, smashing estimates of $4.66. Goldman Sachs also said President David Solomon would succeed Lloyd Blankfein as CEO, effective Oct. 1. The stock declined 0.48%.
Premiums in the quarter rose to $44.46 billion from $39.59 billion but missed analysts' estimates of $44.59 billion. Shares fell 3%.
Johnson and Johnson (JNJ) - Get Report earned an adjusted $2.10 a share in the second quarter, beating estimates of $2.07. The company said it expects adjusted earnings in 2018 of $8.07 to $8.17 a share. The stock rose 3.5%.
Walmart Inc. (WMT) - Get Report said Tuesday it has chosen Microsoft Corp. (MSFT) - Get Report as its strategic cloud provider "to further accelerate Walmart's digital transformation in retail, empower its associates worldwide and make shopping faster and easier for millions of customers around the world."
The five-year agreement between Walmart and Microsoft -- fierce Amazon rivals -- leverages the full range of the tech giant's cloud solutions, including Microsoft Azure and Microsoft 365.
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