Mid-Afternoon Market Update: Netflix Gains Following Q2 Results; Ericsson Shares Plummet

Toward the end of trading Tuesday, the Dow traded down 0.32 percent to 21,559.58 while the NASDAQ climbed 0.30 percent to 6,333.59. The S&P also fell, dropping 0.05 percent to 2,457.94.

Leading and Lagging Sectors

Non-cyclical consumer goods & services shares rose by 0.27 percent in the US market on Tuesday.

In trading on Tuesday, basic materials shares fell 0.44 percent. Meanwhile, top losers in the sector included Haynes International, Inc. HAYN, down 5 percent, and Gibraltar Industries Inc ROCK, down 4 percent.

Top Headline

Bank of America Corp BAC reported better-than-expected profit for its second quarter.

Bank of America posted quarterly adjusted earnings of $0.46 per share on revenue of $22.8 billion. However, analysts were expecting earnings of $0.43 per share on sales of $21.8 billion.

Equities Trading UP

Jewett-Cameron Trading Company Ltd JCTCF shares shot up 11 percent to $13.35. Jewett-Cameron reported Q3 earnings of $0.53 per share on revenue of $16.7 million.

Shares of Netflix, Inc. NFLX got a boost, shooting up 14 percent to $183.84. Netflix reported stronger-than-expected sales for its second quarter. However, the company slightly missed earnings estimates. Netflix added 1.07 million subscribers domestically, with 4.14 users added internationally. Rosenblatt upgraded Netflix from Neutral to Buy.

Educational Development Corporation EDUC shares were also up, gaining 11 percent to $11.40. Educational Development posted Q1 earnings of $0.30 per share on revenue of $26,930,800.

Equities Trading DOWN

Tile Shop Hldgs, Inc. TTS shares dropped 23 percent to $15.68 after the company reported downbeat Q2 results.

Shares of Telefonaktiebolaget LM Ericsson ERIC were down 16 percent to $6.09 after the company posted disappointing quarterly earnings. Ericsson posted Q2 operating loss of 1.2 billion Swedish crowns ($145.3 million), versus a year-ago profit of 2.8 billion Swedish crowns.

Harley-Davidson Inc HOG was down, falling around 8 percent to $47.97. Harley-Davidson posted upbeat Q2 earnings, but lowered its 2017 motorcycle shipment guidance.

Commodities

In commodity news, oil traded up 0.46 percent to $46.23 while gold traded up 0.62 percent to $1,241.40.

Silver traded up 0.94 percent Tuesday to $16.25, while copper rose 0.18 percent to $2.729.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 declined 1.11 percent, the Spanish Ibex Index fell 1.19 percent, while Italy’s FTSE MIB Index declined 0.59 percent. Meanwhile the German DAX dropped 1.25 percent, and the French CAC 40 slipped 1.09 percent while U.K. shares fell 0.19 percent.

Economics

The import price index declined 0.2 percent for June, versus economists’ expectations for a 0.2 percent drop. The export price index slipped 0.20 percent last month.

The Johnson Redbook Retail Sales Index dropped 1.3 percent during the first two weeks of July versus June.

The NAHB housing market index dropped to 64.00 in July, versus prior reading of 67.00. Economists expected a reading of 67.00.

The Treasury International Capital report for May is schedule for release at 4:00 p.m. ET.