The New York Stock Exchange was in good spirits on Wednesday, bouncing back after two consecutive days of decline.
According to final results on Wall Street, the Dow Jones went back above 34,000 points, increasing 0.93% to 34,137.31 points.
The Nasdaq, with strong technological coloring, recovered 1.19% to 13,950.22 points. The S&P 500 advanced 0.93% to 4,173.42 points.
“The mood was very positive and that’s a good sign, even though Netflix has put pressure on the Nasdaq,” said Peter Cardillo of Spartan Capital Securities.
The American streaming giant announced Tuesday after the close of the Stock Exchange a disappointing growth of paid subscribers in the first quarter, attracting 208 million subscribers worldwide (+ 14%), or 2 million less than it had promised investors.
The momentum of the streaming platform, boosted during the favorable period of the pandemic, appeared to be running out of steam and Netflix expects only 1 million additional subscribers for the current quarter, compared to 10 million last year at the same period. Netflix stock fell 7.40% to $ 508.90 despite a net profit for the first quarter, to $ 1.7 billion, well above expectations and more than double from a year ago.
Almost all sectors of the S&P 500, except in particular communications services, are back in the green.
“Optimism for robust economic growth and earnings for 2021” has come back to grace “and has brushed aside lingering concerns about rising Covid-19 cases in some parts of the world,” Schwab analysts commented.
For Peter Cardillo, the market seemed “to be done with the small technical adjustment made in recent days”, while the three indices fell for two sessions in a row, weighed down by the progression of cases of coronavirus contamination around the world.
“Now investors should respond to the salvo of corporate results that we are going to have next week as well as the macroeconomic news,” added the analyst.
The results of Tesla, UPS, Boeing and Alphabet (Google) are notably expected as well as the outcome of a monetary committee of the American Central Bank (Fed) in the middle of the week, with a press conference by President Jerome Powell.
On Wednesday the Central Bank of Canada, which revised its growth projection upwards for this year (5.8%), announced for its part a reduction in its purchases of government bonds to stimulate the economy, to from next Monday.
Among the shares of the day, that of telecoms operator Verizon, a member of the Dow Jones, lost some ground (-0.39%), with analysts focusing more on the slowdown in its wireless subscribers rather than its slightly better than expected results.
The American oil services group Halliburton, which announced results above expectations, nevertheless lost 3.69% as crude prices fell.
Chevron meanwhile gained 1.46% after the announcement of a research partnership with Toyota in hydrogen fuel cells.
Yields on ten-year US Treasuries were flat at 1.55%.