Nasdaq-100 futures fall as Netflix shares decline after earnings: Live updates

Stocks closed mixed on Thursday, while the Dow Jones Industrial Average notched its first nine-session winning streak since 2017.

The 30-stock Dow added 163.97 points, or 0.47%, to close at 35,225.18. The S&P 500 slipped 0.68% to 4,534.87 while the Nasdaq Composite fell 2.05% to finish the session at 14,063.31.

— Brian Evans

Twenty stocks in the S&P 500 touched 52-week highs on Thursday, and 11 of them also reached all-time highs. Three of the 20 were homebuilders, and all of them also traded at record highs at one point in Thursday’s session. One of the 20 (JPM) is also in the Dow Jones Industrial Average.

New S&P 500 52-Wk Highs: 

Dow Components: JPM

• D.R. Horton, all-time high back to 1992 IPO
• Darden, all-time high back to 1995 IPO
• NVR, Inc. , all-time back to post-bankruptcy IPO in 1993  
• PulteGroup, all-time high back to 1972 IPO
• Molson Coors, highest since August 2018
• Arch Capital Group, record high back to start of trading in 2000
• Brown & Brown , highest since April 2022
• JPMorgan, highest since Feb. 2022
• Marsh & McLennan, all-time high back to start of trading in 1962
• Vertex Pharma, all-time back to 1991 IPO
• A.O. Smith Corp., highest since Feb. 2022
• Cintas, all-time high back to 1983 IPO
• Eaton Corp, all-time high back to 1923 IPO
• Expeditors International, highest since Jan. 2022
• Johnson Controls, highest since Feb. 2022
• Paccar, all-time high back to 1971 IPO
• Verisk Analytics, highest since Nov. 2021 IPO
• Cadence Design Systems, all-time high back to when predecessor ECAD, Inc. went public 1987
• Cisco, highest since April 2022
• Roper, highest since April 2022

Two stocks fell to new 52-week lows in the SPX Thursday, and both were cell phone tower providers, continuing July’s weakness in the telecom group.

• Crown Castle International, lowest since Dec. 2018
• SBA Communications, lowest since March 2020

 — Scott Schnipper, Christopher Hayes

A slide among consumer discretionary stocks in the S&P 500 this week hasn’t been enough to erase gains from earlier in the month.

Consumer discretionary is the worst performing of the broad index’s 11 sectors this week with a drop of nearly 2.5%. By comparison, the S&P 500 is up about 0.7% on the week.

But that leg down has not been enough to eclipse the sector’s advances earlier in the month. The sector as a whole is still up about 0.5% on a month-to-date basis.

— Alex Harring

The 30-stock Dow is beating the Nasdaq 100 on Thursday, outperforming it by as much as 2.5 percentage points.

That is the widest gap between the two indexes since February 2022.

Strong quarterly results from Johnson & Johnson, in which the health-care giant beat on earnings, helped propel the blue-chip average. Indeed, shares popped 6%. Goldman Sachs and Boeing are also up more than 2%. Each of those three stocks are good for at least 30 points on the Dow. Meanwhile, Tesla’s 9% decline is dragging on the Nasdaq 100.

Even as the Dow is on its way to a ninth day of gains – its longest winning streak since September 2017 – it’s still only up 6.4% in 2023, compared to the Nasdaq 100’s jump of 41%.

-Darla Mercado, Nick Wells

Individual investor enthusiasm for stocks climbed to 51.4% in the latest weekly survey by the American Association of Individual Investors, up from 41.0% bullishness last week, and the seventh straight week bullish sentiment landed above its long-term historical average of 37.5%.

The latest week’s optimism was the highest since April 2021, when it stood at 52.7%. Similiarly, the seven-week above average score was the longest stretch of unabashed optimism since February-May of 2021.

Conversely, bearish opinion that stocks will fall in price over the next six months dropped to 21.5%, the lowest since June 2021, from 25.9% last week, and the seventh week in a row bearishness was below its historical average of 31.0%. The seven-week stretch is the longest since a 23-week streak that lasted from February to July of 2021.

Bearish sentiment “is nearing the bottom of its typical range,” the AAII said. The past year’s high in bearishness came last September, when 60.9% of investors thought the future outlook for stocks was grim — less than one month before the bear market bottom.

Neutral opinion narrowed to 27.1% of investors polled in the latest week vs 33.1% last week.

— Scott Schnipper

Despite a mixed quarterly print, Netflix‘s latest results seemed to prove some Wall Street analysts wrong on the subscriber front.

The company on Wednesday reported second-quarter results that missed revenue expectations, but showed stronger-than-expected earnings and an 8% jump in subscriptions as its crackdown on password sharing took off.

For the period, Netflix added 5.9 billion new subscriptions, well above many Wall Street estimates. Heading into the print, some analysts had been cautious on Netflix’s subscriber growth, with Jefferies analyst Andrew Uerkwitz and Wells Fargo’s Steven Cahall saying that estimates look too high.

Both analysts had said they were bracing for a post-earnings pullback, but that investors should consider using short-term pressure as a buying opportunity.

— Samantha Subin

Western Alliance is gaining steam as the regional banking crisis of the spring fades in the minds of investors, and the stock still his significant upside from here, according to JPMorgan.

Analyst Steven Alexopoulos hiked his price target on Western Alliance to $60 per share from $53 after the bank’s second quarter report showed that deposits were returning. The stock rose more than 7% on Wednesday and is up another 3% on Thursday.

Read more about this analyst call on CNBC Pro.

— Jesse Pound

Wall Street is talking about one major comment from CEO Elon Musk coming out of Tesla’s earnings.

Evercore ISI’s Chris McNally called this software-related announcement the “next hot topic,” although there is a “very high bar” for the product.

Read more what Wall Street is saying post Tesla earnings here.

— Samantha Subin

Netflix  — Netflix dropped more than 8% after reporting mixed quarterly results Wednesday. The streaming giant beat on earnings per share for the second quarter, but its revenue of $8.19 billion fell short of the $8.30 billion expected from analysts polled by Refinitiv.

Tesla – Tesla shares tanked more than 6%. The electric vehicle maker topped Wall Street’s top-and-bottom line expectations but showed a drop in operating margins due to recent price cuts and incentives.

American Airlines – The airline shed more than 6% even after posting strong quarterly results and lifting its profit outlook for 2023. American Airlines reported adjusted earnings of $1.92 a share on $14.06 billion in revenue. Analysts had expected earnings per share of $1.59 on revenues of $13.74 billion.

The full list can be found here.

— Hakyung Kim

Anheuser-Busch InBev is a buying opportunity even after its controversial handling of a social media campaign involving a transgender influencer, according to Morgan Stanley.

“We see a very favourable risk reward underpinned by attractive valuation,” Sarah Simon wrote to clients on Thursday. “While investors are currently sitting on the sidelines, waiting for the company to fully quantify the impact of the Bud Light situation, we see upcoming H1 results as likely timing for such clarification.”

Anheuser-Busch InBev shares 1-day

Wall Street is holding onto its outlook on Tesla after it delivered a solid earnings report that nevertheless showed weaker margins after the company’s aggressive price cuts.

Tesla beat expectations on the top and bottom lines in its second-quarter report. The electric vehicle maker reported revenue of $24.93 billion, beating the consensus estimate of $24.47 billion, according to Refinitiv. It posted adjusted earnings of 91 cents per share, also greater than the expected 82 cents.

However, operating income fell 3% from the year-earlier period to $2.40 billion. That’s also down from $2.66 billion in the first quarter.

Still, Wall Street analysts took the report in stride, with several big banks maintaining a neutral outlook on the stock after its significant rally this year. Tesla is higher by 136% in 2023.

The stock is down 6.7% so far Thursday.

Tesla shares 1-day

CNBC Pro subscribers can read the full story here.

— Sarah Min

Leading economic indicators pointed to more trouble in June while existing home sales fell more than expected, according to data released Thursday.

Existing home sales slid 3.3% for the month, worse than the Dow Jones estimate for a 2.3% decline, according to the National Association of Realtors.

Also, the Conference Board said its compilation of leading indicators, including S&P 500 stock prices, bond spreads and jobless claims, among other points, declined for its 15th straight month, the longest since the 2007-08 period. The 0.7% drop was slightly worse than the -0.6% estimate.

“We forecast that the US economy is likely to be in recession from Q3 2023 to Q1 2024. Elevated prices, tighter monetary policy, harder-to-get credit, and reduced government spending are poised to dampen economic growth further,” said Justyna Zabinska-La Monica, senior manager of business cycle indicators at The Conference Board.

—Jeff Cox

The inflation problem that has bedeviled the U.S. economy for the past two years is beginning to fade, the head of private equity giant Blackstone told CNBC.

“The market is beginning to digest that this inflation scare is moving behind us,” Jon Gray, the firm’s president and chief operating officer, said Thursday morning in a live “Squawk Box” interview.

Still, Gray expects the Federal Reserve will raise interest rates once or twice more as it looks to avoid the mistakes of the 1970s, when the central bank backed off the inflation fight and ultimately was forced to hike dramatically.

“The Fed, given what they experienced in the 1970s, is going to stay vigilant and I think what that will lead to is a slowdown in the US and the global economy,” he said. “So I think we’ve got to anticipate that,” he added. “The good news is we’ve gotten through this inflation shock. We got through the interest rate shock. And now I think we have to deal with a bit of an economic slowdown but we’ll get through that.”

—Jeff Cox

Shares of Vir saw a dramatic slide on Thursday morning.

The company said in a release that it will discuss the results in more details in its Aug. 3 earnings call.

— Jesse Pound

The labor market remains while manufacturing activity in the Philadelphia area deteriorated more than expected, according to economic data released Thursday morning.

First-time jobless claims totaled 228,000 for the week ended July 15, a decline of 9,000 from the previous period, according to a Labor Department report. Economists surveyed by Dow Jones had been expecting 240,000. Continuing claims increased by 33,000 to 1.754 million, more than 1.73 million FactSet estimate.

Separately the Philadelphia Federal Reserve’s manufacturing index registered a -13.5 reading, worse than -10 estimate. The figure represents the difference between companies reporting expansion against contraction, so any negative figure represents a pullback.

New orders and shipments both saw declines, while the prices received index surged.

—Jeff Cox

Wall Street analysts were positive on Netflix after its latest subscriber additions and largely dismissed concerns of that the monetization of paid sharing is too slow.

Netflix posted a solid earnings report even as the broader media industry cuts down on content for its streaming services, and contends actors and writers being on strike. The company added 5.9 million subscribers in the quarter in a sign that its password sharing crackdown and advertising tier is generating new subscribers.

However, shares fell about 6% in Thursday premarket trading following concerns paid sharing hasn’t added more to revenue yet.

Netflix shares 1-day

CNBC Pro subscribers can read the story here.

— Sarah Min

These are the stocks moving the most before the bell:

• Netflix — The streaming giant shed nearly 7% after reporting mixed quarterly results. Netflix posted earnings of $3.29 a share on $8.19 billion in revenue. Analysts surveyed by Refinitiv anticipated earnings o of $2.86 per share and $8.30 billion in revenue. Netflix also said it’s too early to break down revenue from its new ad-supported tier and password crackdown.
• Tesla — Shares lost about 4% before the bell. The electric vehicle maker reported second-quarter earnings that topped Wall Street’s expectation on the top and bottom lines, and record quarterly revenue. Operating margins, however, fell to the lowest level in at least the past five quarters as a result of recent price cuts.
• Las Vegas Sands — The resort-and-casino stock fell 2% despite beating analyst expectations for its second quarter. Las Vegas Sands posted 46 cents in adjusted earnings per share on $2.54 billion in quarterly revenue, while analysts polled by Refinitiv forecasted 46 cents in earnings per share and revenue at $2.39 billion.

— Samantha Subin

Turkey’s central bank announced on Thursday that it has hiked its key interest rate by 2.5 percentage points to 17.5%.

“The Committee decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior,” the central bank said in a statement.

Turkey’s economic indicators “point to continuation of the increase in the underlying trend of inflation,” the statement said.

— Jesse Pound

Johnson & Johnson shares rose more than 1% in the premarket after the company posted better-than-expected second-quarter results.

The pharmaceutical and consumer goods giant earned an adjusted $2.80 per share on revenue of $25.53 billion. Analysts polled by Refinitiv expected a profit of $2.62 per share on revenue of $24.62 billion.

J&J also raised its full-year outlook.

JNJ rises

U.S. Treasury yields climbed on Thursday as investors considered what could be on the horizon for the economy and looked to data that could inform decisions made by the Federal Reserve at its upcoming policy meeting.

At 4:38 a.m. ET, the yield on the 10-year Treasury was over three basis points higher to 3.7796%. The 2-year Treasury was up by more than three basis points to 4.7939%.

— Sophie Kiderlin

The pan-European Stoxx 600 opened 0.2% lower on Thursday, with tech stocks dropping 2% on the back of weak earnings stateside, while mining stocks added 0.8%.

European tech stocks followed their U.S. counterparts lower in early trade. Nasdaq 100 futures slid in after-hours trading Wednesday evening as Netflix missed second-quarter earnings expectations, while Tesla CEO Elon Musk and other executives told an earnings call to expect a slowdown in vehicle production in the third quarter.

— Elliot Smith

Wed, Jul 19 202310:54 PM EDT

Australia’s seasonally adjusted unemployment rate remained unchanged at 3.5% in June, slightly lower than the 3.6% expected by economists polled by Reuters.

Data from Australian statistics’ bureau said in June, the employment-to-population ratio remained at 64.5%, with total unemployment decreasing 1,600 to 505,500.

The employment rate is one of the key metrics the Reserve Bank of Australia considers when it meets to discuss rate decisions.

— Lim Hui Jie

Wed, Jul 19 20239:39 PM EDT

China left its one year and five year loan prime rates unchanged at 3.55% and 4.2% respectively, days after it also left its medium term facility loan rates unchanged at 2.65%.

This also comes after the country saw its second quarter GDP growth come in below expectations on Monday, recording a 6.3% rise year on year compared to the 7.3% expected by economists polled by Reuters.

China last cut its loan prime rate in June, when its lowered the one-year and five-year loan prime rates by 10 basis points.

— Lim Hui Jie

Wed, Jul 19 20238:14 PM EDT

Japan recorded a surprise trade surplus of 43.05 billion yen ($308.5 million) in June, marking the first time in 23 months that the world’s third-largest economy has posted a surplus.

This was a sharp reversal from the 1.38 trillion yen deficit recorded in May, and the 1.37 trillion yen seen in June 2022.

Government data showed that the surplus was mainly due to a fall in imports. Imports slid 12.9% year on year in June, while exports recorded a 1.5% rise compared with the same period last year.

— Lim Hui Jie

Wed, Jul 19 20236:43 PM EDT

Oil prices are beginning to steadily climb after declining in the second quarter due to recession fears, according to LPL Financial.

“A key concern for oil prices has been that the threat of the global central bank rate hiking campaign would push the global economy into a recession. In particular, the Fed’s aggressive rate hike cycle was perceived as a leading cause for a marked slowdown for the economic landscape,” said Quincy Krosby, chief global strategist for LPL Financial. “Now, as the Fed seems closer to its terminal rate and with the dollar easing accordingly, oil prices have begun to inch higher,” Krosby added.

A resilient U.S. economy and production cuts could be further catalysts to keeping prices elevated, Krosby added.

— Hakyung Kim

Wed, Jul 19 20236:20 PM EDT

Check out the companies making headlines in extended trading.

Netflix — The streaming giant’s shares tumbled more than 7% after posting its quarterly results Wednesday after hours. The company said it was too early to assess the effects of its crackdown on its password sharing and revenue from its ad-supported offering. In its latest quarter, Netflix posted earnings of $3.29 per share on revenue of $8.19 billion. Analysts polled by Refinitiv called for earnings of $2.86 per share and revenue of $8.3 billion.

IBM — The business services company’s shares shed 0.8% following its mixed second-quarter earnings report. The company posted revenue of $15.48 billion, missing Wall Street’s forecast of $15.58 billion, according to Refinitiv. IBM reported adjusted earnings of $2.18 per share, which was higher than analysts’ consensus estimate of $2.01 per share.

Tesla — Tesla shares declined 1.4% following its second-quarter earnings announcement. While the company reported record-high quarterly revenue, operating margins also fell to 9.6%, the lowest level in the past five quarters due to price cuts and incentives.

The full list can be found here.

— Hakyung Kim

Wed, Jul 19 20236:04 PM EDT

U.S. stock futures opened in the red Wednesday evening.

Futures tied to the Dow Jones Industrial Average shed 13 points, or 0.04%. S&P 500 futures ticked down 0.03%,

Meanwhile, Nasdaq 100 futures declined 0.25%.

— Hakyung Kim