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

Wed 21st April, 2021 9:24pm
* Nasdaq index outshines S&P 500 at close
    * Netflix falls as subscriber growth slows 
    * Verizon shares fall after Q1 results

 (Adds pricings to post 4 p.m. close)
    By Herbert Lash and Shreyashi Sanyal
    NEW YORK/BANGALORE, April 21 (Reuters) - Wall Street
rebounded on Wednesday after a two-day decline in a broad rally
as a tilt toward stocks poised to benefit from a recovering
economy offset Netflix Inc's  NFLX.O  sell-off after its
disappointing results a day earlier.
    Shares of Netflix slumped 7.4% 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 Composite Index  .IXIC  overtook the S&P 500
 .SPX  in percentage gain shortly before the close.
    Intuitive Surgical Inc  ISRG.O  surged 9.9%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 1.1%,
outpacing the 0.8% gain in growth  .RLG  even as the
growth-oriented but more concentrated Nasdaq climbed more than
the S&P.
    The Russell 2000 Index  .RUT  of small-cap stocks gained
2.4% in its biggest single-day advance since March 1.
    "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 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."
    The Nasdaq Composite  .IXIC  added 1.19% to 13,950.22. The
Dow Jones Industrial Average  .DJI  rose 0.93% to 34,137.31,
while the S&P 500  .SPX  gained 0.93% at 4,173.42.
    Volume on U.S. exchanges was 9.22 billion shares, down from
10.44 billion average for the full session over the previous 20
trading days.
    Verizon Communications Inc  VZ.N  slid 0.4% 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  rose 4.3% even 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
    Advancing issues outnumbered declining ones on the NYSE by a
3.82-to-1 ratio; on Nasdaq, a 3.55-to-1 ratio favored advancers.
    The S&P 500 posted 86 new 52-week highs and no new lows; the
Nasdaq Composite recorded 71 new highs and 58 new lows.  


 (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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