U.S. stocks slip slightly lower on Netflix woes; Tesla results due
U.S. stocks slipped slightly lower Wednesday, weighed by disappointing third-quarter numbers from streaming giant Netflix as the earnig season continued apace.
At 09:45 ET (13:45 GMT), the Dow Jones Industrial Average slipped 43 points, or 0.1%, the S&P 500 index dipped 2 points, or 0.1%, and the NASDAQ Composite fell 18 points, or 0.1%.
Investors remain focused on the ongoing quarterly earnings season, with more than three-quarters of the S&P 500 companies that have posted results so far have beaten expectations, according to FactSet.
Numbers from electric vehicle manufacturer Tesla are due after the close, and will kick off highly-awaited reports from the “Magnificent Seven” megacap tech group.
The company unveiled record third-quarter deliveries earlier this month, fueled by a marketing and discounting campaign aimed at boosting sales prior to the withdrawal of a $7,500 U.S. tax credit for EV buyers. Worries have, in turn, swirled around how Tesla’s performance will be impacted following the expiration of the tax credits.
Elsewhere, streaming giant Netflix stock slumped after it reported a third-quarter operating margin of 28%, which missed Wall Street expectations, due largely to charges related to a spat with tax authorities in Brazil.
Still, revenue and profit for the period grew, powered by the firm’s best-ever quarter for advertising sales, along with a jump in membership and higher prices.
Toy company Mattel also disappointed investors after missing estimates and reporting weaker North American sales.
Source:Investing.com
