Advertisment
The NASDAQ Composite hit a record high on Tuesday as strong gains in Amazon and a rebound in Netflix shares led to a big comeback in tech stocks.
The Dow Jones Industrials recovered 55.53 points to end Wednesday at 25,119.89, with Johnson & Johnson outperforming.
The S&P 500 recovered 11.12 points to 2,809.58, led by gains in tech and consumer staples
The NASDAQ gained 49.4 points to 7,855.12, after falling as much as 0.7%, as Amazon reached an all-time high. Meanwhile, Netflix closed just 5.2% lower after falling as much as 14.1% earlier in the session.
Netflix initially plunged after reporting weaker-than-expected subscriber growth. The streaming giant said Monday afternoon that domestic subscribers grew by 670,000 in the previous quarter, while international additions rose by 4.5 million. Analysts polled by StreetAccount expected domestic gains of 1.23 million and 5.11 million new international subscribers.
Netflix's steep decline dragged down other major tech stocks. Google-parent Alphabet dropped as much as 1.2%,while Amazon and Facebook fell more than 1%, earlier in the session. Alphabet rose 1.4%, and Facebook recovered to pick up 1.3%, and reach record highs.
Amazon rose 1.2% after data from Feedvisor showed strong sales growth for the first 12 hours of Prime Day compared to last year. Earlier, Amazon fell 1.4% amid glitches during the company's annual sales event.
Technology is the biggest sector in the S&P 500 by weight, according to S&P Dow Jones Indices. As of June 29, the sector represents 26% of the overall S&P 500. Health care is the second-largest sector, with a weight of 14.1%.
Johnson & Johnson rose 3.5% after reporting earnings and revenue that topped expectations. Goldman Sachs also posted better-than-expected earnings, but its stock fell 0.6%. The bank also announced that David Solomon will take over the CEO role from Lloyd Blankfein on Oct. 1.
Meanwhile, Charles Schwab jumped 3.6% on stronger-than-forecast results.
Prices for the benchmark for the 10-year U.S. Treasury lost back ground it had won, raising yields back to Monday’s 2.86%. Treasury prices and yields move in opposite directions.
Oil prices were unchanged at $68.06 U.S. a barrel.
Gold prices gave back $11.60 at $1,228.10 U.S. an ounce.
