Wall Street traded lower on Thursday as the outlook for a trade deal with China dims and a rare decline in subscribers at Netflix sends its stock plummeting.
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| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 27133.56 | -86.29 | -0.32% |
| SP500 | S&P 500 | 2981.77 | -2.65 | -0.09% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8158.843136 | -26.36 | -0.32% |
The streaming site posted a loss of 126,000 paid users in the U.S. and missed expectations for international additions, a key area of growth for the firm, in the second quarter. Executives attributed the shortfalls to a weak slate of content. Netflix shares were down double-digits in futures trading on the news.
Meanwhile, President Trump on Wednesday took another dig at China, blasting its slowing economy and touting the U.S.’s economic strength at a rally on Wednesday, as the two nations seek to restart trade talks. But Trump and top White House officials are cautioning that any agreement is far in the future, spurring pessimism among investors that a deal is possible.
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In economic news, initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 216,000 for the week ended July 13, the Labor Department said.
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In other earnings news, UnitedHealth Group on Thursday raised its 2019 profit outlook after beating estimates for financial results through June. Underscoring the growth is a 13.4 percent growth in revenue at Optum, the insurer’s in-house pharmacy benefit manager, to $28 billion.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 322.02 | -40.42 | -11.15% |
| UNH | UNITEDHEALTH GROUP INCORPORATED | 260.69 | -5.96 | -2.24% |
| MS | MORGAN STANLEY | 44.15 | +0.38 | +0.87% |
The middleman drug price negotiators are in the midst of a victory lap after the Trump administration decided to abandon a proposal that would have eliminated the arcane drug rebates that flow from pharmaceutical firms to Optum and other PBMs.
Morgan Stanley wrapped up earnings season for the big banks, topping estimates with a second-quarter profit of $1.23 per share on revenue of $10.2 billion.
Microsoft is among the other firms that report second-quarter earnings today.
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Oil fell nearly 3 percent a barrel on Thursday, weighed down by an expectation that crude output would rise in the Gulf of Mexico following last week’s hurricane in the region.
