Wall Street is extending yesterday’s gains following a rally in overseas markets. Stocks are mostly higher (^DJI, ^GSPC, ^IXIC), but weakness in some big tech names like Netflix are putting pressure on the Nasdaq.
Netflix shares fall on weak outlook
Netflix (NFLX) shares fell sharply in early trading after a weaker subscriber-growth forecast for the current quarter overshadowed results for the first three months of the year. Netflix expects to add less than half as many subscribers as it did during the first quarter, with one-fifth of the growth coming from the U.S.
IBM (IBM) posted earnings and revenue that topped analysts’ estimates for the first quarter thanks to strong demand for its cloud services. However, the company’s revenue fell for the 16th straight quarter, with sales down 4.6% from a year ago.
Goldman Sachs (GS) managed to report earnings that topped Wall Street views. But revenue missed estimates with sales down 40% from a year ago as market volatility took a toll on the company’s bond trading and investment banking businesses.
Johnson & Johnson (JNJ) delivered better-than-expected earnings for the first quarter. The company also raised its outlook for the year. However, revenue came in slightly shy of estimates, as the stronger dollar and Venezuela’s currency devaluation weighed on sales.
UnitedHealth (UNH) raised its guidance for the year after the nation’s largest health insurer reported a beat on both its top and bottom lines in the first quarter. Revenue jumped nearly 25% fueled by strength in its health-service unit Optum and its consulting business, which helped offset losses on Affordable Care Act plans.
Target to hike minimum wage: Reuters
Reuters is reporting that Target (TGT) is raising employee wages to a minimum of $10 an hour. The $1 per hour raise marks the second time the retail giant has hiked prices in a year. Could Target’s profit take a hit from a higher minimum wage?
Amazon looks to sell e-books to NYC schools
New York City’s department of education will vote tomorrow on the initial three years of a contract with Amazon (AMZN) to sell e-books to the city’s schools. The deal is valued at about $30 million.
- Stocks & Offerings
- Investment & Company Information
- Wall Street