NEW YORK: Wall Street’s main indexes were higher in morning trading on Tuesday as upbeat results from Netflix, Travelers outweighed concerns of the potential impact of President Donald Trump’s decision to impose steep import tariffs.
Netflix jumped 11 percent to a life-high of $257.71 after the video-streaming pioneer beat Wall Street targets for new subscribers in the fourth quarter. The stock provided the biggest boost to the Nasdaq.
The results also boosted other FAANG stocks, led by Amazon’s 1.5 percent gain.
Travelers was the biggest gainer on the Dow, rising 4.7 percent after the property and casualty insurer reported profit that beat Wall Street estimates.
South Korea and China protested against Trump’s move to impose import tariffs on washing machines and solar panels, with Seoul saying it would respond to the spread of protectionist measures.
“We don’t know if this is the beginning of something larger or if it’s something that will escalate into a trade war,” said Art Hogan, chief market strategist at B. Riley FBR in Boston.
Hogan also said it sparked fears about US walking away from NAFTA.
NAFTA’s future hangs in the balance this week as negotiators from the United States, Canada and Mexico try to settle major differences over revamping a pact that Trump has threatened to abandon.
At 9:36 a.m. ET (1446 GMT), the Dow Jones Industrial Average was down 22.23 points, or 0.08 percent, at 26,192.37 and the S&P 500 was up 2.42 points, or 0.09 percent, at 2,835.39. The Nasdaq Composite was up 21.11 points, or 0.28 percent, at 7,429.14.
The major indexes notched record closing highs on Monday after US lawmakers reached a deal to end a three-day federal government shutdown.
Seven of the 11 major S&P sectors were higher, led by a 0.62 percent gain in consumer discretionary stocks.
Verizon rose about 1 percent after the No. 1 US wireless carrier reported quarterly revenue that exceeded analyst estimates as phone subscribers grew while tax cuts helped its profits soar.
Johnson & Johnson fell 1.3 percent after the healthcare company reported a quarterly loss due to a $13.6 billion charge related to the new US tax law, but beat adjusted quarterly profit estimate.
Shares of Whirlpool rose 3 percent and solar companies such as Real Goods Solar, Sunworks and First Solar rose between 7 percent and 39 percent following the new tariffs.
Procter & Gamble fell 2.5 percent after the company reported an 8 percent drop in quarterly profit due to the sale of a chunk of its beauty brands to Coty and a charge related to the recent US tax overhaul.
Advancing issues outnumbered decliners on the NYSE by 1,288 to 1,262. On the Nasdaq, 1,232 issues fell and 1,145 advanced.
Source: Brecorder.com
