US stocks mix and tech stocks under pressure

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U.S. stocks have struggled to keep early gains with tech stocks under pressure after Netflix Inc. surprised investors with disappointing subscription prospects. European equities fluctuated while the dollar weakened.The S&P 500 changed little after opening in the green. Netflix sank up 7.3% after announcing that it plans to register only half of the 5 million subscribers expected on Wall Street in the third quarter.

Meanwhile, the data showed that US consumer sentiment collapsed in July, missing all forecasts, after the resurgent coronavirus had wiped out any emerging optimism about the reopening.

“There are a lot of cross currents,” said John Porter, director of equity investments at Mellon Investments. “You’ve had such an incredible run in growth versus value stocks. This certainly paves the way for a sales reaction to the news.

They seem to have almost unrealizable expectations built into these short-term prices. The answer to every problem on the market seems to be technology. ”

Investors are watching closely to see how the broader tech sector reacts to Netflix’s weaker outlook. The Nasdaq Composite has managed to pass two months without posting consecutive declines, but this is now under threat as investors question the resilience of the scorching technology rally.

Nasdaq Avoided Consecutive Loss Sessions for Over 40 Days

In Europe, traders hope that political decision-makers will conclude a recovery pact. Chancellor Angela Merkel on Friday expressed doubts that EU leaders would be able to agree this week on a historic recovery fund of 750 billion euros (855 billion dollars) to help their economies heal from the pandemic.

The positive profits of Daimler AG and Ericsson AB have pulled automakers and tech stocks higher.

Elsewhere, Chinese stocks remained stable after falling more than 4% on Thursday, with investors assessing the steps taken by policymakers to tame the signs of exuberance.

These are the main market developments:

Stocks

  • The S&P 500 rose 0.2% at 10 am New York time.
  • The Dow Jones Industrial Average climbed 0.1% to 26,752.93.
  • The Nasdaq composite index rose 0.1%.
  • The MSCI All Country World Index rose 0.2% to 547.69.

Devises

  • The Bloomberg Dollar Spot Index fell 0.2% to 1,205.66.
  • The euro gained 0.3% to US $ 1.1425, the strongest in more than four months.
  • The Japanese yen strengthened 0.1% to 107.21 dollars.

Obligations

  • The yield on two-year treasury bills increased by less than one basis point to 0.15%.
  • Yields on 10-year T-bills fell less than one basis point to 0.61%, the lowest in nearly 11 weeks.
  • Germany’s 10-year yield rose by less than one basis point to -0.46%.

Raw materials

  • Crude West Texas Intermediate gained 0.2% to $ 40.81 US per barrel.
  • Gold strengthened 0.6% to US $ 1,807.75 an ounce, the largest gain in a week.
  • Copper edged down 0.2% to $ 2.90 US per pound.



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