US major indices break losing streaks but close well off the highs

Technical Analysis

NASDAQ snaps 5 day losing streak. Dow and S&P break 4-day decline

The US major indices snapped their losing streaks but also close well off there intraday highs.  The NASDAQ index had had a 5 day losing streak while the Dow and S&P declined for 4 straight days.

  • S&P index closed up 16.23 points or 0.47% 3443.15. The high price reached 3476.93. The low extended to 3435.65.
  • NASDAQ index closed up 37.613 points or 0.33% at 11516.49. The high price reached 11632.89. The low extended to 11471.23.
  • Dow industrial average closed up 113.27 points or 0.4% at 28308.69. The high price reached 28575.03. The low extended to 28243.04

Netflix earnings released after the close and numbers were disappointing:

  • The consensus EPS Estimate of 2.14 (up +45.6% Y/Y) . The actual earnings per share came in at $1.74
  • Consensus Revenue Estimate is $6.38B (up +21.5% Y/Y).  Revenues came in at $6.44 billion
  • Analysts expect operating income of $1.29B 
  • Streaming paid net adds are expected to rise by 3.3M for the quarter. They came in much lower at 2.2MThe company guided to 2.5M. 
  • Netflix sees fourth-quarter streaming paid net change of 6 million vs estimates of 6.54 million
  • See Q4 revenue of 6.57 billion vs. estimate 6.59 billion
  • See 4Q EPS of $1.35 vs. $0.97 estimate

The price after the close is down close to 6%

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