Dow jumps 200 points as winning streak continues, Netflix drags down Nasdaq: Live updates

Business
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July 20, 2023
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, July 19, 2023.

Brendan McDermid | Reuters

The Dow Jones Industrial Average jumped for a ninth consecutive day on Thursday after better-than-expected earnings results from drugmaker Johnson & Johnson. If that holds, it will be the Dow’s best daily winning streak since 2017.

But the broader market suffered after post-earnings declines in trader favorites Netflix and Tesla.

The 30-stock Dow, which has less dependence on tech stocks, added 252 points, or 0.7%. Yet the S&P 500 and Nasdaq Composite fell 0.4% and 1.5%, respectively.

Shares of Dow member Johnson & Johnson rose 6.5% after the drugmaker hiked its full-year guidance along with posting quarterly results that topped Wall Street’s estimates. Another Dow member, insurer Travelers, beat analyst estimates for revenue in the quarter, boosing the shares.

But the earnings results were uneven and that dragged down the S&P 500 and Nasdaq. Shares of Netflix dropped more than 8% after the streaming giant posted revenue that fell short of analysts’ estimates. Expectations were high into the report with the stock up nearly 50% on the year.

Tesla, meanwhile, tumbled 8% after CEO Elon Musk and other executives said on its earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Of the S&P 500 companies that have reported earnings thus far, 74% have exceeded expectations, FactSet data shows. The strength in corporate earnings have created optimism for a soft landing for the economy.

Stocks are coming off a positive session, with the Dow posting an eight-day winning streak, its longest since September 2019.

“Although the number of bear market prognosticators has certainly thinned out given the market’s impressive run, there remains a diehard contingent that have viewed recent trends as nothing more than a bear market rally,” BMO Capital Markets analyst Brian Belski said in a note from the firm. “Unfortunately for this crowd, history does not appear to be on their side.”