Wall Street stocks rise as Netflix pulls streaming rivals higher

Shares of technology on Wall Street rose on Wednesday, with strong gains for streaming companies after Netflix lost fewer subscribers than expected in the second quarter.

Technology-dominated Nasdaq Composite climbed 1.9 percent in early trading, but narrowed its gains after The Information reported that Google’s parent alphabet would temporarily suspend new hires.

The Nasdaq rose 1% by mid-afternoon, while the S&P 500 jumped 0.2%.

Shares of Netflix rose 5.9% after announcing at the end of Tuesday that the number of subscribers Fell less than forecast During the second quarter.

The company added that it was “confident and optimistic about the future”, even when its third quarter subscriber forecasts were not below analysts’ expectations.

Scott Dwight, a analyst at Stifle, said that with signs of stabilization at the subscriber base, “we believe the prospect of a prolonged period of loss of subscriptions is becoming increasingly unlikely.”

Netflix’s share price move on Wednesday affected U.S. stock markets, pulling movie, TV and other music streaming providers up. Walt Disney earned 3.3 percent, while Spotify added 3.1 percent and streaming and hardware platforms Rocco jumped 6 percent. All those shares fell Sharply after a warning about subscribers growth from Netflix At the end of April, as a sign of the group’s perception of ringing bells to change consumer sentiment and the household economy.

However, Alphabet, which climbed 1.3% earlier that day, reversed the trajectory and was 0.4% lower. This was the second time this week that reports of a slowdown in recruitment in a large technology group have hit markets, following a Bloomberg report on Apple On Monday. Tension signs in some of the most expensive companies in the US have highlighted the concern that the economy is heading for a recession.

Elsewhere in the stock market, Europe’s regional Stoxx 600 meter closed down 0.2 percent.

Government bond markets were generally stable following a brief rise in Eurozone bonds earlier in the session. Germany’s 10-year yield on Germany, which is considered a proxy for fundraising costs across the eurozone, fell 0.02 percentage points to 1.20%. Yields fall As prices rise, the US Treasury Department’s corresponding return rose by 0.01 percentage points to 3.3 percent, while the 10-year golden yield in the UK fell by 0.05 percentage points to 2.14 percent.

These moves came ahead of the European Central Bank’s monetary policy meeting that was expected on Thursday. The ECB has signaled extensively that it is ready to raise borrowing costs for the first time since 2011, when it faces fierce inflation.

Tariff makers are expected to discuss the option of extra-large An increase of 0.5 percentage points A scenario that will raise its deposit rate to zero for the first time since 2014 – but analysts remain divided over the extent of the reasonable tightening.

“I do not see 50 basis points tomorrow,” said Sabrina Kanisha, a senior economist at Pictet Asset Management. “The growth forecast has deteriorated because of the conflict between Ukraine and Russia and the implications for the gas supply.”

The euro fell 0.6% against the dollar to $ 1.017.

Wall Street stocks rise as Netflix pulls streaming rivals higher Source link Wall Street stocks rise as Netflix pulls streaming rivals higher

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