Tesla, Netflix pull Nasdaq and S&P lower, Dow ends higher
Nasdaq fell on Thursday, weighed down by drops in Tesla and Netflix following their quarterly results, but the Dow advanced for a ninth straight day thanks to gains in Johnson & Johnson following a strong annual forecast. Tesla's shares tumbled after the electric-vehicle maker reported a drop in its second-quarter gross margins to a four-year low and CEO Elon Musk hinted at more price cuts. Netflix also slumped after the streaming video company's quarterly revenue fell short of estimates.
«The news last night in Tesla and Netflix, while it's not the end of the world does give people a reason to wake up and go 'wow, maybe I shouldn't be chasing these names up here,'» said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida. «Let me take some money off the table and redeploy it into big boring names.» The Dow, however, was able to climb as Johnson & Johnson gained after reporting results and announcing an annual profit forecast raise. According to preliminary data, the S&P 500 lost 30.44 points, or 0.67%, to end at 4,535.28 points, while the Nasdaq Composite lost 291.48 points, or 2.03%, to 14,066.54.
The Dow Jones Industrial Average rose 163.87 points, or 0.47%, to 35,225.08. The Dow registered its ninth straight session of gains, its longest winning streak since September 2017. The Nasdaq has surged about 34% this year to levels not seen since early April 2022, supported by a seemingly unstoppable rally in megacap growth names such as Nvidia and Meta on optimism over the potential of artificial intelligence, a U.S.
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