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Updated Fri, Oct 18, 2024, 6:58 AM 1 min read
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US stocks rose on Friday, with tech in the lead as investors welcomed Netflix's (NFLX) across-the-board earnings beat in the wait for the next batch of corporate results.
The tech-heavy Nasdaq Composite (^IXIC) moved up roughly 0.5%, while the S&P 500 (^GSPC) added 0.3%. The Dow Jones Industrial Average (^DJI) fell about 0.1% after hitting a fresh record closing high.
The major stock gauges are all on track for a sixth weekly win in a row after a strong showing by big banks to kick off earnings season.
Netflix's results late Thursday relieved some worries that Big Tech names might struggle in the third quarter as they did in the last. The streaming giant's profit surged to outstrip Wall Street estimates, while revenue and subscriber growth also came in stronger than expected. Its shares jumped over 9% in morning trading.
At the same time, a rebound in Chinese stock markets propelled gains in US-listed shares of Alibaba (BABA), JD.com, (JD) and PDD (PDD). The rally came amid revived optimism for more stimulus to help China's economy.
In commodities, gold (GC=F) prices hit a new record, topping $2,700 an ounce for the first time. Concerns about the Middle East conflict and uncertainty about the outcome of the US presidential election prompted a shift to less-risky assets.
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CVS stock plunges as chain replaces CEO Karen Lynch
CVS (CVS) stock fell more than 6% following news that the pharmacy chain will replace its CEO Karen Lynch with another company executive, David Joyner.
Shares are down nearly 20% this year as the company has been under pressure from Glenview Capital Management, a hedge fund pushing for changes, according to the Wall Street Journal, which first reported the news of Joyner's appointment. CVS has been reportedly reviewing strategic options that could include a breakup.
David Joyner, the executive vice president of CVS Health and president of the chain's pharmacy health services business, CVS Caremark, replaced Lynch as of Thursday, CVS said. Lynch had been CEO since 2021.In an interview with the Journal, Joyner said the company would move forward intact.
CVS also said in a release Friday that it expects adjusted third-quarter earnings per share of $1.05 to $1.10, lower than the $1.70 forecast by Wall Street analysts, according to Bloomberg consensus estimates. CVS said investors should no longer rely on its previous full-year 2024 earnings guidance — which it has already repeatedly lowered — given "continued elevated medical cost pressures in the Health Care Benefits segment."
Stocks rise after strong Netlfix earnings
The final trading session of the week started with mostly positive results as investors welcomed Netflix's (NFLX) across-the-board earnings beat, which could serve as a preview for the mega-cap tech giants reporting next week.
The tech-heavy Nasdaq Composite (^IXIC) moved up roughly 0.5%, while the S&P 500 (^GSPC) added 0.3%. The Dow Jones Industrial Average (^DJI) fell about 0.1% after hitting a fresh record closing high.
The major stock gauges are all on track for a sixth consecutive weekly win after a strong showing by big banks to kick off earnings season.
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