Nasdaq ends 2.1% lower as Tesla, Netflix tumble
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THE Nasdaq tumbled Thursday (Jul 20) on selloffs in Netflix and Tesla following mixed earnings, even as the Dow rose for the ninth straight session.
The Dow Jones Industrial Average finished at 35,225.18, up 0.5 per cent, extending a rally.
The broad-based S&P 500 fell 0.7 per cent to 4,534.87, while the tech-rich Nasdaq Composite Index dropped 2.1 per cent to 14,063.31.
Analysts have been cautioning that the market could be poised for a pullback after a strong second quarter and beginning to the third quarter.
“A couple of news items, one on Netflix and one on Tesla prompted some profit-taking today in the tech arena,” said Cresset Capital’s Jack Ablin.
“This is a pretty expensive space that just really got ahead of itself.”
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Tesla, whose shares have more than doubled in 2023, fell nearly 10 per cent despite topping analyst estimates for earnings per share and revenues. But the electric car maker saw profit margins erode as the result of price cuts.
Similarly, Netflix, which had risen more than 60 per cent on the year, sank 8.4 per cent despite announcing a surprisingly robust addition of 6 million customers in the wake of its crackdown on password sharing.
But the streaming service missed revenue estimates and faced questions on the effects of a writers and actors strike that has mostly shut down Hollywood.
Other large tech companies including Apple, Amazon and Google parent Alphabet also fell.
But Dow members Johnson & Johnson and IBM rose 6.1 per cent and 2.1 per cent respectively following earnings reports, propelling the blue-chip index higher. AFP
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