Nasdaq Jumps 1%, Netflix Soars 7%

Barry Adams
20 Jul, 2022
New York City

U.S. stocks advanced and investors digest the latest batch of earnings. 

The S&P 500 index increased 0.8% to 3,869.45 and the Nasdaq Composite index advanced 1.8% to 11,925.83. 

Futures of crude oil decreased 72 cents to $103.45 a barrel and natural gas increased 15 cents to $7.42 a unit. 

The yield on 10-year Treasury notes increased to 3.038%.  

Mortgage demand plunged to the lowest in 22 years, according to the data released by the Mortgage Bankers Association.

Stocks advanced on Wall Street on the earnings optimism and investors looked ahead to results from at least 100 more companies this week. 

Netflix increased 7.3% to $216.20 after the steaming services provider reported fewer than expected subscriber losses. 

In the second quarter, Netflix lost 970,000 subscribers, less than the previous estimate of 2 million. Moreover, earnings were ahead of expectations. 

Baker Hughes dropped 8.01% to $25.98 after the oil field services company reported sharply lower than expected earnings. 

 

European markets traded higher after Italian Prime Minister Mario Draghi told lawmakers in the upper house of the parliament that he will continue to lead the nation if he wins the confidence vote. 

Draghi is set to address lawmakers in the lower house of parliament tomorrow. 

Draghi's commitment to stay in the office comes at a crucial time for Italy as the nation needs to finalize its annual budget and pass reforms in the next few weeks ahead of receiving the next tranche of post-pandemic funding of 20 billion euros from the European Union. 

Last week, Draghi offered his resignation to Italian president after bickering coalition partner Five Star Movement pulled its support ahead of confidence vote, 

Draghi's resignation prompted a huge outpouring of public support urging him to stay in the office and lead the nation. Draghi was appointed in the office 17 months ago. 

The DAX index fell 0.2% to 13,287.91, the CAC-40 eased 0.1% to 6,194.13, and the FTSE 100 index dropped 0.4% to 7,264.33. 

Asian markets broadly closed higher on the receding worries that China's campaign against tech companies may be nearing end. 

The Nikkei index soared 2.7% to 27,680.27, the Hang Seng index added 1.1% to 20,890.22, and the Sensex index jumped 1.2% to 55,397.53. 

The People's Bank of China held its key lending rate for five-year loans at 4.45% as mortgage boycotts are spreading across the nation. 

The central bank lowered its rate by 15 basis points in May and by 5 basis points in January.