US Stocks Mixed After Setting Record Highs; Netflix Surges
NEW YORK (AP) — U.S. stocks are mixed in early trading 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 dipped 2 points, or 0.1 percent, to 2,830 as of 10 a.m. Eastern time. The Dow Jones industrial average fell 66 points, or 0.3 percent, to 26,148. The 30-stock index was pulled lower by losses from Goldman Sachs, Procter & Gamble and Johnson & Johnson. The Nasdaq composite jumped 16 points, or 0.2 percent, to 7,424. The Russell 2000 index of smaller-company stocks lost 4 points, or 0.3 percent, to 1,600.
Most stocks listed on the New York Stock Exchange were trading lower.
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 $20.63, or 9.1 percent, to $248.21.
TARIFFS: U.S. solar power companies rose after President Donald Trump approved tariffs on imported solar-energy components in a step intended to help U.S. manufacturers. The tariffs, aimed at cheaper imports from rival makers in places like China and South Korea, raise the threat of a trade war between the U.S. and Asia. China called the tariffs an abuse of trade remedies. First Solar gained $4.72, or 6.8 percent, to $73.68 and SunPower added 41 cents, or 4.8 percent, to $9.14.
The 30 percent tariff also applies to large washing machines. Whirlpool climbed $5.36, or 3.2 percent, to $172.02.
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 $2.92, or 2 percent, to $145.22.
Tide detergent maker Procter & Gamble lost $2.17, or 2.4 percent, to $89.72 following its second-quarter report.
BONDS: Bond prices turned higher. The yield on the 10-year Treasury note fell to 2.62 percent from 2.66 percent. For the last few days, the 10-year yield has been at its highest level since September 2014.
ENERGY: Benchmark U.S. crude rose 5 cents to $64.12 a barrel in New York. Brent crude, used to price international oils, added 63 cents to $69.66 a barrel in London.
CURRENCIES: The dollar slid to 110.41 yen from 110.99 yen. The euro edged up to $1.2268 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 0.8 percent and the British FTSE 100 rose 0.2 percent. France's CAC 40 fell less than 0.1 percent.
Bank of Japan policymakers did not make any changes to the central bank's monetary stimulus even though growth in Asia's second-biggest economy has ticked higher. They will continue making massive asset purchases and using negative interest policy to spur inflation. Japan's benchmark Nikkei 225 index jumped 1.3 percent and South Korea's Kospi advanced 1.4 percent. Hong Kong's Hang Seng rose 1.7 percent.
– by AP reporter Marley Jay