Tech And Consumer-Focused Companies Rise; Netflix Leaps

FILE - This Monday, Aug. 24, 2015, file photo shows the New York Stock Exchange. U.S. stocks are mixed, Tuesday, Jan. 23, 2018, as technology and consumer-focused companies rise but consumer goods makers like Johnson & Johnson take losses. (AP Photo/Seth Wenig, File)

NEW YORK — U.S. stocks are mixed Tuesday as consumer-focused companies like Netflix and Amazon climb while household goods makers including Johnson & Johnson and Procter & Gamble sink following disappointing quarterly reports. Bond yields are down after rising to three-year highs in the last few days. That’s helping high-dividend companies like utilities.

KEEPING SCORE: The Standard & Poor’s 500 index added 3 points, or 0.1 percent, to 2,836 as of 1:15 p.m. Eastern time. The Dow Jones industrial average fell 15 points, or 0.1 percent, to 26,198. The 30-stock index was pulled lower by losses from Johnson & Johnson, Goldman Sachs and Procter & Gamble as well as Boeing. The Nasdaq composite jumped 40 points, or 0.5 percent, to 7,447. The Russell 2000 index of smaller-company stocks added 2 points, or 0.1 percent, to 1,607.

EVERYBODY’S WATCHING: Netflix said it picked up 8.3 million subscribers in the fourth quarter, a much stronger result than the company and analysts had expected. That came even though Netflix raised the price of its most popular plan in the U.S. The streaming video company’s stock soared $21.91, or 9.6 percent, to $249.49.

TARIFFS: Solar power companies spiked in early trading after President Donald Trump approved tariffs on imported solar-energy components in a step intended to help U.S. manufacturers. The tariffs start at 30 percent and they’re aimed at cheaper imports places like South Korea and China. The latter country called the measures an abuse of trade remedies.

Raymond James analyst Pavel Molchanov said investors sent the stocks higher because they were relieved the administration didn’t implement a larger tariff that might have hurt their businesses more severely. He said the extra costs will stop some projects from being built, but added that solar power capacity in the U.S. should keep growing at a rapid pace over the next few years.

First Solar rose as much as 8.6 percent before turning lower and falling 91 cents, or 1.3 percent, to $68.05. SunPower gained 6.8 percent early on, but later fell 59 cents, or 6.8 percent, to $8.13. JinkoSolar Holdings sank $1.50, or 6.4 percent, to $21.87 and Canadian Solar declined 35 cents, or 2.2 percent, to $15.42.

The administration also placed a tariff of 50 percent on large washing machines and some components. Whirlpool climbed $6.72, or 4 percent, to $173.37.

CONSUMER GOODS: Johnson & Johnson lost more than $10 billion in the latest quarter as it took a big charge related to the recent U.S. tax overhaul. And Wall Street was concerned the health care giant also reported sharply higher spending on production, marketing, administration and research, offsetting a big jump in sales. Its stock shed $5.86 or 4 percent, to $142.28.

Tide detergent maker Procter & Gamble lost $3.12, or 3.4 percent, to $88.77. The company reported a bigger profit and better sales than Wall Street expected, but analysts said its profit margins were weak.

Rival Kimberly-Clark moved higher after it said it will cut 5,000 to 5,500 jobs, or 12 percent to 13 percent of its staff, close or sell some low-margin businesses and close or sell about 10 manufacturing facilities as it tries to cut costs. Its stock added 65 cents to $117.56.

BONDS: Bond prices turned higher. The yield on the 10-year Treasury note fell to 2.63 percent from 2.66 percent. For the last few days, the 10-year yield has been at its highest level since September 2014.

The increase in bond prices came after the Bank of Japan did not cut back its monetary stimulus programs. While growth has ticked higher, the central bank will continue making massive asset purchases and will keep using negative interest rates to spur inflation. Japan’s benchmark Nikkei 225 index jumped 1.3 percent and South Korea’s Kospi climbed 1.4 percent. Hong Kong’s Hang Seng rose 1.7 percent.

ENERGY: Benchmark U.S. crude rose 76 cents, or 1.2 percent, to $64.33 a barrel in New York. Brent crude, used to price international oils, added 74 cents, or 1.1 percent, to $69.77 a barrel in London.

CURRENCIES: The dollar slid to 110.38 yen from 110.99 yen. The euro edged up to $1.2281 from $1.2258.

GLOBAL GROWTH: The International Monetary Fund estimated that the world economy expanded at a 3.7 percent annual pace last year, the fastest since 2011, and said it believes growth will accelerate to 3.9 percent in 2018-19. The IMF noted surprisingly strong growth in Europe and Asia and predicted that U.S. tax cuts will give the American economy a short-term boost.

Germany’s DAX climbed 0.7 percent and the British FTSE 100 rose 0.2 percent. France’s CAC 40 fell 0.1 percent.

By MARLEY JAY - JAN 23. 2018 AP

____

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jayt

 
 

News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • U.S. News, World News
  • Business, Politics
  • Entertainment, Sports
  • Art, Lifestyle
  • Videos And More
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!

    Advertisement
     

    Copyright © 2018 Front Street. All Rights Reserved.