Stocks look to rebound with Netflix earnings on deck

U.S. stocks rose Thursday as investors prepared for Netflix (NFLX) to kick earnings season into high gear.

The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) rose about 0.7% after closing lower in the previous session. The Nasdaq Composite (^IXIC) rose 0.4% following the recent tech crisis.

Stocks have struggled on concerns that inflation may slow and the Federal Reserve may ease its interest rate cuts. This has put corporate profits front and center as investors closely monitor whether reports match high expectations.

TSMC’s (TSM) latest quarterly results were mixed: the Taiwanese chip giant warned about its growth prospects this year outside of its memory chip business, sending the stock down more than 5%. The company, however, reported an “insatiable” appetite for AI by posting higher quarterly profit.

Focus on the results now turns to Netflix, the first of the large-cap technology companies to issue a report. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, given that megacaps still play a big role in driving markets higher.

At the same time, the market remains attentive to the debate over whether the Federal Reserve might refrain from cutting interest rates this year, given the risks of a “no landing” for the economy.

U.S. bond yields have fallen from their recent five-month highs, easing pressure on stocks. The 10-year Treasury yield (^TNX) was trading near 4.56%.

Live4 updates

  • Tesla shares fall to 52-week low

    Tesla (TSLA) fell more than 3% in early trading Thursday as shares of the electric vehicle giant continue their downward trend. Tesla stock is down about 40% year to date, hitting its lowest intraday level since January 2023.

    The stock weighed on the tech-heavy Nasdaq Composite (^IXIC), which struggled to stay in green territory after sliding more than 1% in the previous session.

  • S&P 500 tries to end four-day losing streak

    Stocks rose Thursday morning, driven by gains in the three major averages.

    The Dow Jones Industrial Average (^DJI) rose 0.3%, while the S&P 500 (^GSPC) rose about 0.2%. The Nasdaq Composite (^IXIC) added 0.1% after technology stocks finished down more than 1% on Wednesday.

    In each of the previous sessions this week, the S&P 500 opened higher but was unable to maintain those gains throughout the day. The broader benchmark index has closed lower over the past four sessions.

    All eyes will be on Netflix (NFLX) this afternoon when the streaming giant reports its quarterly results after the closing bell.

    Netflix shares are up more than 25% year to date.

  • The Tesla debate continues

    One of the fun things about business writing: the jokes about a battleground title when it’s put to the test.

    That battleground stock today is none other than Tesla (TSLA), which had a terrible 2024 for many reasons. The stock is down 11% over the past five trading sessions despite the company’s new round of cost cuts. Shares are close to a 40% decline year to date.

    Today’s pre-market banter from the Yahoo Finance newsroom focused on how slowly most investors have been moving to reverse the stock’s price. Some analysts have changed their ratings, but the holdouts are holding on.

    Yahoo Finance Live director Valentina Caval and reporter Madison Mills crunched the numbers on this, and here’s where things stand.

    While over 60% of analysts had a buy rating on Tesla last year, only 32% of analysts now have the same rating on the stock. Around 44% have a Hold rating, while 23% have a Sell rating.

  • And the US debt warnings continue – Bank of America CEO weighs in

    The IMF made waves this week at its spring meetings in Washington with its warnings about high US debt levels ($34 trillion and counting).

    Amid these warnings, we’ve seen 2- and 10-year Treasury yields rise and the air escape from momentum stocks like Nvidia (NVDA).

    Bank of America Chairman and CEO Brian Moynihan enters the U.S. debt conversation via a new interview with yours truly.

    “So we really need to let the debt reach the right levels. And it’s all good now, but it’s something we have to worry about,” Moynihan told me on Yahoo Finance. “It’s not something where you sound the alarm and say we have to stop everything tomorrow. It’s something you have to manage over the next decade, because a little bit of work every year represents a lot at the end of the decade.”

    You can watch our discussion on other issues, such as the situation for U.S. consumers, below. And there’s more analysis on the company’s earnings this week here.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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