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Morning Brief: Netflix subscriber growth disappoints, stock plunges

Tuesday, July 17, 2018

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FANG stocks will certainly be an investor focus on Tuesday, following stumbles by Amazon (AMZN) and Netflix (NFLX) on Monday. Though corporate earnings will still be a main focus with Goldman Sachs (GS), Johnson & Johnson (JNJ), United Airlines (UAL), United Healthcare (UNH), and Charles Schwab (SCHW) among the S&P 500 members set to report earnings.

Federal Reserve Chair Jerome Powell will also be on Capitol Hill Tuesday morning at 10:00 a.m. ET, answering questions from lawmakers about Fed policy in his semi-annual testimony before Congress.

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REUTERS/Mike Blake/File Photo

Netflix subscriber numbers disappoint, stock plungesNetflix (NFLX) missed expectations on its subscription numbers when it reported earnings on Monday, with total streaming adds of 5.14 million versus analysts’ expectations of 6.27 million. Stock was down more than 13% in after-hours trading. [Yahoo Finance]

Amazon’s Prime Day sales soar despite glitches, Feedvisor: Amazon.com Inc.’s (AMZN) sales rose sharply during the first three hours of its Prime Day sales event, dispelling fears that the technical glitches that incensed shoppers would significantly hurt business. Shoppers spent 54% more in the first three hours of this year’s event — 3 p.m. to 6 p.m. ET — than in the first three hours of a year ago when the shopping bonanza began at 9 p.m., according to Feedvisor, which sells software to set prices in e-commerce. [Bloomberg]

Walmart, Microsoft in partnership to use cloud tech: Retail giant Walmart Inc. (WMT) said on Tuesday it entered into a strategic partnership with Microsoft Corp. (MSFT) for wider use of cloud and artificial intelligence technology, in a sign of major rivals of Amazon.com Inc coming together. The five-year agreement will leverage the full range of Microsoft’s cloud solutions. [Reuters]

Tesla shares fall after CEO Musk abuses British diver: Shares of Tesla Inc. (TSLA) fell 2.75% on Monday after Chief Executive Elon Musk directed abuse on Twitter at one of the British cave divers involved in the rescue of 12 Thai children last week. The stock sell-off knocked almost $2 billion off the company’s market value. [Reuters]

GOP join Democrats in condemning Trump’s remarksLawmakers in both major parties and former intelligence officials appeared shocked, dismayed and uneasy with President Donald Trump’s suggestion that he believes Putin’s denial of interfering in the 2016 elections. It was a remarkable break with U.S. intelligence officials and the Justice Department. And just as alarming for some, Trump also put the two countries on the same footing when casting blame for their strained relations. [AP]

Russian President Vladimir Putin gives a soccer ball to U.S. President Donald Trump, left, during a press conference after their meeting at the Presidential Palace in Helsinki, Finland, Monday, July 16, 2018. (AP Photo/Alexander Zemlianichenko)

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Illo by: David Foster