Stock market today: Wall Street's rally fades after Tesla and Netflix fall
Stocks are slipping following a mixed set of profit reports, forcing a cooldown for Wall Street’s torrid rally
NEW YORK — Stocks are slipping Thursday following a mixed set of profit reports, forcing a cooldown for Wall Street’s torrid rally.
The S&P 500 was 0.4% lower in afternoon trading, coming off its highest close since early April 2022 and its seventh gain in the last eight days. The Dow Jones Industrial Average was up 264 points, or 0.8%, at 35,323, as of 12:35 p.m. Eastern time. The Nasdaq composite was 1.5% lower and on track for its worst drop in six weeks.
Two of the most popular stocks, Netflix and Tesla, helped weigh on the market after the companies reported how much profit they earned during the spring.
Tesla tumbled 7.7% despite reporting stronger profit and revenue than expected. Analysts said investors may be concerned about how profitable the electric vehicle maker will be after cutting prices. Planned factory downtime during the summer for upgrades could also weigh on its upcoming results.
Because Tesla is one of the most valuable companies on Wall Street, its stock movements carry extra weight on the S&P 500 and other indexes.
Netflix sank 9.3% despite also reporting stronger profit than expected. One important measure for the company, how much revenue it makes from paid memberships on average, fell during the quarter from a year earlier.
Tesla and Netflix are two of the first huge tech-oriented companies to report their profits for the spring, and a lot is riding on the results. Big Tech stocks have rallied hard this year and been the primary reason for the S&P 500’s big gains. Netflix is still up 47% for the year so far, and Tesla has more than doubled.
If big tech stocks don’t produce the profits
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