
Netflix a major climber on Wall Street
Published 7:51 pm, Tuesday, January 23, 2018
NEW YORK - Technology led some indexes to more records Tuesday in what was overall a mixed day on Wall Street.
Netflix soared after saying it gained more than 8 million subscribers at the end of 2017.
Bond prices rose and yields fell after the Bank of Japan said it isn't cutting back its stimulus programs. Yields had reached longtime highs, and the decline helped high-dividend companies like utilities and real estate investment trusts.
Health care and household goods companies fell after Johnson & Johnson and Procter & Gamble gave disappointing quarterly reports.
U.S. solar power companies spiked after President Donald Trump approved tariffs on imported solar-energy components. Some investors were relieved: Analysts said the tariffs will make production more expensive for U.S. companies, but they weren't as harsh as they could have been. Companies that do their manufacturing overseas finished lower and some of the U.S. companies gave up their gains before trading ended.
"You could probably argue that this particular tariff is the first implementation of the protectionist rhetoric that he ran on," said Randy Frederick, vice president of trading & derivatives at Charles Schwab. That didn't worry investors much, but Frederick said stocks might decline if there are signs other countries are retaliating or that the administration is preparing to take more aggressive steps.
The tariff on imported solar-energy components will start at 30 percent, and it's aimed at cheaper imports from places like South Korea and China. The latter country called the measures an abuse of trade remedies.
Raymond James analyst Pavel Molchanov said the extra costs from the tariffs 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 48 cents to $68.48. SunPower gained 6.8 percent early on but later fell 56 cents, or 6.4 percent, to $8.16. However, Sunrun gained 37 cents, or 6.1 percent, to $6.41.
The administration also placed a tariff of 50 percent on large washing machines and some components. Whirlpool climbed $5.33, or 3.2 percent, to $171.98.
The Standard & Poor's 500 index and the Nasdaq rose, but the Dow Jones industrial average fell slightly. The 30-stock index was pulled lower by Johnson & Johnson and Procter & Gamble's losses.
Netflix said it picked up 8.3 million subscribers in the fourth quarter, a much stronger result than the company and analysts had expected. The streaming video company's stock soared $22.71, or 10 percent, to $250.29.
Big technology companies also rallied.
Johnson & Johnson dropped after the health care giant said sharply higher spending canceled out a big jump in sales. A federal appeals court also ruled against Johnson & Johnson, saying a patent on its rheumatoid arthritis drug Remicade isn't valid. Remicade is its biggest-selling drug and the ruling could lead to increased competition. Its stock shed $6.31, or 4.3 percent, to $141.83.
Tide detergent maker Procter & Gamble lost $2.84, or 3.1 percent, to $89.05. The company reported a bigger profit and better sales than Wall Street expected, but analysts said its profit margins were weak.