Mid-Session Analysis AOF Wall Street – Netflix Plays Bad Techno Movie in Scattered Order

(AOF) — US stock markets move in scattered order as we approach the mid-session. Pending the release of the Fed’s Beige Book on the health of the US economy, traditional stocks are supported by solid results from IBM, Abbott and Procter & Gamble, as well as the decline in yields. This drop in yields is not benefiting technology stocks, which have been wiped out by the fall of Netflix. At around 5:25 PM, the Dow Jones gained 0.66% to 35,141.24 points, while the Nasdaq fell 1% to 13,485.27 points.

Netflix slumped nearly 37% on Wall Street to $221.47 a share, sealing last night’s announcement of some subscriber declines unheard of for more than 10 years. The acclaimed video-on-demand platform registered 221.64 million worldwide at the end of March 2022, or 200,000 less than on December 31, 2021. This represents a decrease of less than 0.1%, but enough to annoy analysts who saw a profit of 2.5 million subscribers.

Today’s economic figures

In the United States, 5.77 million old homes were sold in March. Economists had forecast 5.8 million sales, down from 5.93 million in February (revised figure of 6.02 million).

The Fed’s “Beige Book” on the health of the economy will be released at 8 p.m.

The values ​​that follow today

Abbott Laboratories

Abbott Laboratories reported quarterly results that exceeded expectations, mainly thanks to sales of more than $3 billion worth of Covid tests. In the first quarter of 2022, the diagnostic testing group achieved net profit of $2.4 billion, an increase of 33%. Excluding exceptional items, EPS came in at $1.73 against a consensus of $1.47. Turnover rose by 14.4% to 11.9 billion. Wall Street was aiming for $10.9 billion. The company predicts sales of $4.5 billion in Covid tests this year.

Baker Hughes

Baker Hughes reported quarterly results that were below expectations due to a “highly volatile” market environment and supply chain constraints. The US oil services company made a net profit of 72 million dollars, compared to a loss of 452 million a year earlier. Excluding exceptional items, EPS came in at 15 cents against a consensus of 19 cents. Turnover increased by 1.1% to 4.84 billion. The market was aiming for $5.01 billion. The group believes that the environment is favorable for oil and gas.

IBM

IBM reported better-than-expected first quarter results, still supported by hybrid cloud performance. The computer giant posted net income of $733 million, or 81 cents per share, compared to $955 million and $1.06 a year earlier, respectively. Excluding exceptional items, earnings per share were $1.40, slightly below Wall Street’s expectations of $1.41.

Lockheed Martin

JPMorgan raised its price target from $420 to $505 for Lockheed Martin stock, while maintaining its neutral rating. Although the group’s performance in the first quarter turned out to be somewhat weak, the broker emphasizes that the medium-term outlook looks favourable, as defense budgets have been increased in many countries following the invasion of Ukraine by Russia.

netflix

Netflix plummets more than 25% in pre-opening on Wall Street. The acclaimed video-on-demand platform is being penalized by the release last night of its quarterly results, in which it also reported a drop in subscribers. Indeed, Netflix had 221.64 million globally at the end of March 2022, 200,000 less than as of December 31, 2021, while FactSet analysts expected a gain of 2.5 million subscribers. Worse, the California group is now forecasting a $2 million drop by the end of the second quarter.

Procter & Gamble

Procter & Gamble reported earnings of $3.36 billion, or $1.33 per share, for the first quarter of 2022, from $3.27 billion or $1.26 per share a year earlier. The FactSet consensus was $1.29 per share. Consumer goods maker sales rose 7% to $19.38 billion, against a consensus of $18.71 billion. The group also took advantage of this publication to increase its annual targets and is now targeting a sales increase of 4% to 5% (+6% to +7% organically), compared to +3% to +4% previously.

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