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Stock prices appear to be rebounding thanks to Netflix gains


U.S. stocks wobbled in early trading Thursday as investors braced for Netflix (NFLX) to kick earnings season into high gear.

The S&P 500 (^GSPC) hovered above the flatline, while the Dow Jones Industrial Average (^DJI) rose about 0.5% after closing lower in the previous session. The Nasdaq Composite (^IXIC) fell 0.2%, adding to tech’s recent slump.

Stocks have struggled on concerns that inflation is no longer cooling and that the Federal Reserve could ease interest rate cuts. That has put corporate earnings in focus as investors keep a close eye on how well the reports match up with high expectations.

TSMC’s (TSM) latest quarterly results were mixed, with the Taiwanese chip giant warning about its growth prospects this year beyond its memory chip business, sending shares down more than 5%. However, the company signaled an “insatiable” appetite for AI as it posted quarterly profits.

The focus on earnings now shifts to Netflix, the first of the mega-cap tech companies to report. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, as the mega-caps continue to play a big role in pushing markets higher.

Meanwhile, the market is still keeping an eye on whether the Federal Reserve could forego a rate cut this year given the chances of a ‘no landing’ for the economy. Appearances by policy makers including John Williams and Raphael Bostic are scheduled for Thursday.

US bond yields have fallen from recent five-month highs, easing pressure on stocks. Ten-year Treasury yields (^TNX) were trading around 4.56%.

Live4 updates

  • Tesla shares fall to a 52-week low

    Tesla (TSLA) fell more than 3% in early trading on Thursday, as the EV giant’s shares continued their downward trend. Shares of Tesla are down about 40% this year, hitting their lowest intraday level since January 2023.

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

  • The S&P 500 is trying to break its four-day losing streak

    Stocks rose Thursday morning, led by gains on all 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) rose 0.1% after technology stocks closed more than 1% lower on Wednesday.

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

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

    Shares of Netflix are up more than 25% so far this year.

  • The Tesla debate continues

    One of the joys of a corporate newsroom: the chatter about a stock on the battlefield as it’s put through the wringer.

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

    The chatter today in the Yahoo Finance newsroom premarket was how slow most on the Street have been in reversing course on the stock. Some analysts have adjusted their ratings, but the holdouts are holding firm.

    Director of Yahoo Finance Live Valentina Caval and reporter Madison Mills crunched the numbers on this, and here’s where it stands.

    While more than 60% of analysts had a buy rating for Tesla last year, only 32% of analysts now have the same rating for the stock. About 44% have a Hold rating, while 23% have a Sell rating.

  • And the American debt warnings continue: the CEO of Bank of America makes his appearance

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

    Amid these warnings, we’ve seen 2- and 10-year Treasury yields rise and the tailwinds come out of momentum stocks like Nvidia (NVDA).

    Brian Moynihan, Chairman and CEO of Bank of America, joins the conversation about America’s debt through a new interview with the undersigned.

    “So you really have to keep the debt at the right level. And now it’s fine, but it’s something we have to worry about,” Moynihan told me on Yahoo Finance. “It’s not something you sound the alarm about and say we have to stop everything tomorrow. It’s something you have to work on over the next decade, because a little bit done every year can be done by the end of the decade yield a lot.”

    Below you can watch our chat on other issues, such as the state of American consumers. And here’s more analysis on the company’s earnings this week.

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