Netflix Stock – Midday Report: Wall Street Extends Rebound Midday, Treasury Yields Fall After Retail Data
US stocks recovered for a second day in midday trading on Friday after flat retail spending last month soothed inflation fears for now, but key indexes are set to end the week lower. US Treasury yields fell.
The Dow Jones Industrial Average rose 308.07 points, or 0.91%, to 34,329.52. The S&P 500 added 55.88 points, or 1.36%, to 4,168.32, and the Nasdaq Composite jumped 267.25 points, or 2.03%, to 13,391.24
At current levels, the Dow is set for its first weekly dip in two weeks while the S&P the first in three. The Nasdaq is heading for its fourth straight weekly declines. Still, all three are sitting not too far from their recent record levels.
In the bond markets, the 10-year Treasury yield fell to 1.634%. The benchmark yield spiked this week after a pop in consumer prices last month that sparked fears of a shift in interest rate policy sooner than planned.
On Friday, retail sales were unchanged in April after surging 10.7% in March, while consumer sentiment survey fell to 82.8 from 88.3, helping ease pressure on the inflation front.
“Retail sales posted no growth in April as consumers took a pause following the March spending frenzy,” said Jefferies chief economist Aneta Markowska in a note. “On net, the report did little to change expectations for Q2 GDP growth.” She forecasts Q2 GDP growth of over 10%.
“On earnings day, the market – as it has with Netflix – becomes focused on one single metric: Disney+ subscriber growth. Nothing else seems to matter,” said Michael Nathanson, senior analyst at MoffettNathanson. “Nevertheless, we are hopeful that some of that froth will be taken out of the stock.”
In the broader markets, top tech stocks also rebounded after they were hammered earlier this week with inflation concerns, with Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Microsoft ((MSFT)) and Alphabet (GOOGL) all up.
Shares of cruise operators and airlines rose after the Centers for Disease Control and Prevention eased masked restrictions, saying vaccinated people can go maskless. Carnival (CCL), Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) powered up more than 6%, while United Airlines (UAL), American Airlines ((AAL)) and Delta Air Lines (DAL) added over 4%.
On the energy front, oil prices rose, with US West Texas Intermediate up 2.1% to $65.16 per barrel and Brent crude 2.2% higher to $68.49. Natural gas price fell 0.5% to $2.96 per 1 million BTU. Oil majors also gained, with Exxon Mobil (XOM), ConocoPhillips (COP) and Chevron (CVX) all sharply higher.
Among the gainers, Fisker (FSR) rose 3% after striking a deal with Foxconn to develop electric vehicles. Marathon Petroleum (MPC) rose more than 4% after the company announced plans to buy back a total of $10 billion shares following the close of the $21 billion sale of its Speedway business to 7-Eleven.
On the losing side, Eloxx Pharmaceuticals (ELOX) fell 20% after pricing its 33.33 million shares offering at $1.35 each, against its closing price of $1.70 per share on Thursday. Poly (PLT) shed 18% on disappointment over its guidance.
In the precious metals markets, gold was 0.9% higher to $1,840.50 an ounce, and silver was also up 1.6% to $27.49 an ounce. Copper fell 0.9% to $465.0 per pound.
Among energy ETFs, the United States Oil Fund was up 1.8% to $44.62 while the United States Natural Gas Fund fell 0.5% to $10.60. Among precious-metal funds, the Market Vectors Gold Miners ETF rose 1.9% to $37.57 and SPDR Gold Shares was 0.6% firmer to $172.23. The iShares Silver Trust gained 0.9% to $25.39.