Mid-Day Market Update: Nasdaq Down Over 150 Points; Netflix Shares Drop Following Earnings Report

U.S. stocks traded mixed midway through trading, with the Nasdaq composite dropping more than 150 points on Wednesday.

The Dow traded up 0.76% to 35,176.54 while the NASDAQ fell 1.17% to 13,460.26. The S&P also rose, gaining, 0.03% to 4,463.70.

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Leading and Lagging Sectors

Real estate shares jumped by 1.5% on Wednesday. Meanwhile, top gainers in the sector included Compass, Inc. COMP, up 5% and Rexford Industrial Realty, Inc. REXR up 5%.

In trading on Wednesday, communication services shares fell 3.7%.

Top Headline

Procter & Gamble Co PG reported better-than-expected earnings for its third quarter and raised its FY22 sales outlook.

Procter & Gamble reported third-quarter FY22 sales growth of 7.1% year-on-year to $19.38 billion, beating the consensus of $18.73 billion. Adjusted EPS of $1.33 beat the consensus of $1.30.

P&G raised FY22 all-in sales growth outlook to 4% - 5% (previously 3% - 4%). The company continues to expect FY22 core EPS growth of 3% - 6% versus FY21 Core EPS of $5.66.

Equities Trading UP

AlloVir, Inc. ALVR shares shot up 31% to $7.07 after the company announced the U.S. Food and Drug Administration granted Regenerative Medicine Advanced Therapy designation to its lead investigational multi-virus-specific T cell therapy, posoleucel.

Shares of Terran Orbital Corp. LLAP got a boost, shooting 18% to $5.86. Jefferies initiated coverage on Terran Orbital with a Buy rating and announced a price target of $10.

Healthcare Services Group, Inc. HCSG shares were also up, gaining 21% to $20.04 as the company reported first-quarter FY22 revenue growth of 4.7% year-over-year to $426.8 million, beating the consensus of $424.77 million.

Equities Trading DOWN

Netflix, Inc. NFLX shares tumbled 36% to $221.68 after the company reported downbeat revenue for its first quarter. Global streaming paid partnership increased 6.7% year-over-year to 221.64 million, while global streaming paid net additions were down 200 thousand. Several analysts also downgraded the stock.

Shares of Roblox Corporation RBLX were down 12% to $36.89. Goldman Sachs, on Tuesday, downgraded the stock from Buy to Neutral and lowered its price target from $108 to $50.

Holley Inc. HLLY was down, falling 11% to $12.35. Holley reported a secondary offering of 6.5 million shares of common stock. The company also said it sees Q1 net sales of $199 million to $200 million.

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Commodities

In commodity news, oil traded up 0.7% to $103.30, while gold traded down 0.2% to $1,955.10.

Silver traded down 0.6% Wednesday to $25.24 while copper fell 1.3% to $4.6590.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.85%, London’s FTSE 100 rose 0.29%, while Spain’s IBEX 35 Index rose 0.86%. The German DAX climbed 1.37%, French CAC 40 climbed 1.45% and Italy’s FTSE MIB Index climbed 1.14%.

The trade balance in the Eurozone swung to a EUR 7.6 billion deficit for February, versus a EUR 23.6 billion surplus in the year-ago month. Industrial production in the Eurozone rose 0.7% month-over-month in February.

Italy recorded a trade deficit of EUR 1.7 billion in February versus a year-ago surplus of 4.8 billion. Annual producer inflation in Germany accelerated to 30.9% in March from 25.9% in February.

Economics

Existing home sales dropped 2.7% month-over-month to an annualized rate of 5.77 million in March.

US crude oil inventories fell 8.02 million barrels in the week ended April 15th, the most since January 2021, the Energy Information Administration said.

Federal Reserve Bank of Atlanta President Raphael Bostic will speak at 1:00 p.m. ET.

The Treasury is set to auction 20-year bonds at 1:00 p.m. ET.

The Federal Open Market Committee will release its Beige Book report at 2:00 p.m. ET.

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COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 82,416,680 cases with around 1,016,150 deaths. India confirmed a total of at least 43,047,590 cases and 522,000 deaths, while Brazil reported over 30,279,270 COVID-19 cases with 662,260 deaths. In total, there were at least 506,133,930 cases of COVID-19 worldwide with more than 6,228,730 deaths.