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US STOCKS-Wall Street rebounds after two-day decline; Netflix slides

Wed 21st April, 2021 9:00pm
* Nasdaq index outshines S&P 500 at close
    * Netflix falls as subscriber growth slows 
    * Verizon shares fall after Q1 results

 (Adds market close at 4 p.m.)
    By Herbert Lash and Shreyashi Sanyal
    NEW YORK/BANGALORE, April 21 (Reuters) - Wall Street rallied
on Wednesday, rebounding from a two-day decline, as a tilt
toward stocks poised to benefit from a recovering economy offset
Netflix Inc's  NFLX.O  sell-off after its disappointing results.
    Shares of Netflix slumped a day after the world's largest
streaming service said slower production of TV shows and movies
during the pandemic hurt subscriber growth in the first quarter.
 urn:newsml:reuters.com:*:nL4N2MD48M
    But stocks rallied throughout the day, building steam as the
tech-heavy Nasdaq overtook the S&P 500 in percentage gain
shortly before the close.
    Intuitive Surgical Inc  ISRG.O  surged to an all-time high
as its results trounced estimates. The maker of robotic surgical
systems vied with Microsoft Corp  MSFT.O  and Tesla Inc  TSLA.O 
for much of the session as the biggest contributor to the S&P
500's  .SPX  upside.
    Nine of the 11 S&P 500 sectors rose, with communication
services  .SPLRCL , led by Netflix, and the defensive utilities
 .SPLRCU  sectors falling.
    Economically sensitive value stocks  .RLV  rose at about
double the gain in growth  .RLG  as measured by the Russell 1000
indexes.
    "You take Netflix out of today's equation, it's simply a
broad-based rally," said JJ Kinahan, chief market strategist at
TD Ameritrade, adding technology shares still had room to run. 
    The VIX  .VIX , CBOE's market volatility index, slid below
18, suggesting the market in days to come could be range-bound
while also shrugging off a rebound in COVID infections, he said.
    Analysts expect S&P 500 companies to post first-quarter
earnings growth of 30.9% from a year earlier, Refinitiv IBES
data shows.
    Netflix's results dashed expectations but technology remains
a major market focus.
    "Investors feel more confident of the earnings growth
prospects for technology," said Sam Stovall, chief investment
strategist at CFRA Research in New York. "They would rather
gravitate toward the sure thing, which right now is tech
stocks." 
    Unofficially, the Dow Jones Industrial Average  .DJI  rose
0.94% to 34,139.02, the S&P 500  .SPX  gained 0.93% to 4,173.46
and the Nasdaq Composite  .IXIC  added 1.19% to 13,950.22.
    Verizon Communications Inc  VZ.N  slid after it lost more
wireless subscribers than expected in the first quarter. Shares
of T-Mobile US Inc  TMUS.O  and AT&T Inc  T.N  rose.
 urn:newsml:reuters.com:*:nL4N2ME2OL
    U.S. railroad operator CSX Corp  CSX.O  fell after it missed
estimates for first-quarter profit, hurt by frigid polar vortex
temperatures, ongoing pandemic disruptions and higher fuel
costs.  urn:newsml:reuters.com:*:nL1N2MD2OS 

 (Reporting by Herbert Lash, additional reporting by Shreyashi
Sanyal and Devik Jain in Bengaluru; Editing by Anil D'Silva,
Sriraj Kalluvila and Arun Koyyur and Richard Chang)
 ((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters
Messaging: herb.lash.reuters.com@reuters.net))
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