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Nasdaq Leads Stocks Higher As Netflix Sparks Leisure Sector | Stock News & Stock Market Analysis

The Nasdaq composite led stocks higher Tuesday afternoon as Netflix‘s (NFLX) strong earnings contributed to a rally in the leisure sector.

X The Nasdaq climbed 0.6%, thanks in part to strength in biotechs and a 10% surge in shares of Netflix, which beat subscriber estimates late Monday. Netflix is one of the 20 largest components of the Nasdaq, with an 0.7% weighting.

The S&P 500 and Russell 2000 rose 0.2%, but the Dow Jones industrial average eased 0.1% after Johnson & Johnson (JNJ) tumbled 4% in heavy trading and Procter & Gamble (PG) slid more than 3% in big volume.

A federal court dealt J&J a setback in the company’s patent for the blockbuster arthritis drug Remicade. The news overshadowed J&J’s fourth-quarter results, which beat views. P&G topped sales and profit expectations, but reports said there were concerns about the company’s margins.

Volume in the major exchanges was tracking higher compared with the same time Monday.

Netflix shares shot up to all-time highs after last evening’s fourth-quarter results. The video streaming company added 8.33 million new subscribers worldwide in Q4, despite a hike in subscriber fees. Netflix was the reason why IBD’s movies industry group was the best performing in today’s market.

Other leisure industry groups also were leading, including travel booking and lodging. Both groups were among the top 20 of 197 groups.

Marriott Vacations (VAC) rallied past the 143.63 buy point of a base on base formation, but volume was only average. Eldorado Resorts (ERI) broke out of a flat base, rising past the 34.13 entry in substantial volume. Eldorado owns 19 casinos in Colorado, Florida, Louisiana, Mississippi, Nevada and other states.

A couple of biotechs also broke out as the industry continues to flex some muscle.

Wave  Life Sciences (WVE) cleared a cup-without-handle base with a 39.80 buy point. Volume was flat. Spectrum Pharmaceuticals (SPPI) broke out of an undefined pattern in heavy volume. But the stock dipped below the 22.05 buy point.

Teradata (TDC) broke out past the 39.44 buy point of a flat base, but volume was well below normal levels and the relative strength line has not made new highs. Morgan Stanley upgraded the data storage company to equal weight from underweight, MarketWatch reported.

Paychex (PAYX) topped the 70.49 entry of a flat base in intense volume, but the stock gave back much of its early surge. The payroll, human resources, retirement and insurance services provider has a weak relative strength line and Relative Price Strength Rating, however.


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