Netflix surprises as Apple disappointsJanuary 25 - 11am
Wall Street moved higher on better-than-expected economic data, while earnings including those of Netflix also surpassed estimates, outweighing the disappointment on Apple’s results.
Shares of Netflix soared, last up 37.5 percent, after the company reported a surprise profit.
“Netflix is successfully balancing the costs of international expansion against the increasing profitability of its domestic business,” according to Bloomberg Industries analyst Paul Sweeney.
The latest data on the world’s largest economy provided a picture of better-than-expected strength in jobs, manufacturing and economic activity.
In afternoon trading in New York, the Dow Jones Industrial Average rose 0.42 percent, while the Standard & Poor’s 500 Index gained 0.20 percent.
The Nasdaq Composite Index fell 0.47 percent, dragged lower by Apple. Shares in the iPhone maker were last down 10.7 percent to US$459.24, that compares with a record US$705.07 reached in September 2012.
Apple earnings, released after the market close yesterday, proved a huge disappointment.
At least 14 brokerages, including Barclays Capital, Credit Suisse and Deutsche Bank, cut their price target on the stock by US$142 on average, while Morgan Stanley removed the stock from its “best ideas”-list, according to Reuters.
By Margreet Dietz – BusinessDesk