Marketbites: Netflix Is Booming
Portfolio Manager Commentary:
Stocks rose Wednesday as the corporate earnings season continued, with the Dow Jones Industrial Average registering its longest winning streak in nearly four years. Goldman Sachs reported a miss on profit and a beat on revenue Wednesday, tied to losses in real estate as well as GreenSky. Goldman had previously warned investors that the quarter would likely yield lackluster results. Shares added nearly 1%. Elsewhere, shares of U.S. Bancorp and J.B. Hunt popped about 6.5% and 3.7%, respectively.
hus far, the second-quarter earnings season is off to a strong start. Of the companies in the S&P 500 that have reported results, 78% have exceeded expectations, according to FactSet data. For many investors, the recent streak of gains bolsters the case for a soft-landing scenario. It’s an outlook that has gained traction after last week’s encouraging inflation data.
Carvana shares climbed 40% after the used car retailer secured a deal to reduce roughly $1.2 billion in debt. The online auto retailer posted its quarterly earnings results on Wednesday, having moved the date of its report up from Aug. 3.
Chart of the Day:
Netflix's global password-sharing crackdown delivered robust subscriber growth in the second quarter, a boon for the company as its rivals struggle with flagging TV businesses and costly pivots to streaming. Its strong performance is a marked change from a year ago, when the streaming service lost subscribers in two consecutive quarters for the first time in its history. Netflix shares are up more than 60% so far this year, and the company ended the second quarter with 238.4 million customers.
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