Netflix reported strong earnings, bolstered by live events like football games and a Mike Tyson-Jake Paul fight. The company also announced subscription price increases in the US and other countries, sending its stock up 9.7%. Netflix joins a growing list of companies that have exceeded analysts’ profit expectations for the end of 2024.
Other notable gainers included Travelers, which climbed 3.2% after topping profit expectations, and Procter & Gamble, which rose 1.9% following its report of stronger-than-expected profit and revenue. AI-related companies also significantly lifted the market. Oracle added 6.8% after announcing a joint venture with OpenAI and SoftBank to develop data centers and electricity generation for AI in Texas.
Netflix earnings boost market gains
The partnership is expected to invest up to $500 billion. Nvidia, whose chips drive much of the AI advancements, saw its stock rise 4.4%.
The S&P 500 rose 37.13 points to 6,086.37, the Dow Jones Industrial Average gained 130.92 points to 44,156.73, and the Nasdaq composite jumped 252.56 points to 20,009.34. In international markets, indexes were mixed in Europe and Asia. Late last Tuesday, the 10-year Treasury yield rose to 4.60% from 4.57% due to concerns over stubborn inflation and the US government’s growing debt.
BlackRock Investment Institute strategists expect rates to remain high for an extended period. In the cryptocurrency market, bitcoin was trading just above $104,000.
