Nasdaq closes on a positive note as traders brace for Netflix earnings

4:05pm: S&P extends high as tech earnings set to roll in

At the close, US indices were a mixed bag ahead of a big earnings report from Netflix.

The S&P 500 extended its record high by nearly 14 points to close at 4,865, which was a 0.3% gain on the day. Meanwhile, the Nasdaq gained 0.3% to reach 15,426.

The Dow was weighed down by disappointing earnings from 3M and J&J, falling 0.3% to close at 37,905 points.

12:00pm: Stocks falter ahead of Netflix earnings; 3M weighs on Dow

Weak blue-chips rubbed off on the broader market as investors digested a hefty batch of earnings and looked ahead tor esults from Netflix after the market close.

At midday, the Dow Jones Industrial Average was down 189.25 points, 0.5%, at 37,812.56, the S&P 500 was down 2.49 points, 0.1%, at 4,847.94 and the Nasdaq Composite was little changed at 15,361.72. 

Chris Beauchamp at IG said: "Traders who were cheering on the market as it rallied to fresh highs now find themselves adopting a more cautious tone as they await Netflix earnings tonight."

"Having gained 45% since October the stock does look ripe for a little profit-taking, even if the medium-term outlook remains solid," he added.

Ahead of the earnings, Netflix announced a content streaming partnership with WWE.

The online streamer will broadcast the three-hour weekly WWE Raw show every Monday night, starting in 2025, securing hundreds of hours of premium content every year.

9:40am: 3M weighs on Dow as muted start on Wall Street

Stocks made a mixed start to trading on Tuesday as investors waded through a deluge of earnings.

Shortly after the opening bell, the Dow Jones Industrial Average was down 93.58 points, 0.3%, at 37,908.23, the S&P 500 was up 6.18  points, 0.1%, at 4,856.61 and the Nasdaq Composite was up 28.04 points, 0.2%, at 15,388.33. 

The Dow fell back after breaching the 38,000 mark on Monday, weighed by a 9.2% fall in 3M and a 2.8% drop in General Electric after results.

Both issued guidance for the first quarter of 2024 below Street expectations. 

Bank of America noted 3M introduced first quarter EPS guidance of $2.00-$2.15 below its estimate of $2.38 and consensus of $2.30 while revenue was guided to $7.6 billion compared to consensus of $7.93 billion and BofA estimates of $8.15 billion.

But Proctor & Gamble fared better, rising 4.7%, after it raised its forecast for core earnings for the financial year while there were also gains for United Airlines, Johnson & Johnson (NYSE:JNJ) and Verizon. 

7:00am: Stock futures flat; GE slips on weak Q1 guidance

Stocks futures were little changed as investors waded through a deluge of earnings with GE an early casualty after its first quarter forecast came in light. 

In pre-market trading, futures for the Dow Jones Industrial Average were down 0.1%, while those for the S&P 500 were flat and contracts for the Nasdaq 100 futures were down 0.1%.

Netflix, Procter & Gamble (NYSE:PG), Lockheed Martin (NYSE:LMT), RTX (NYSE:RTX), Halliburton, 3M, Verizon, DR Horton will report earnings today giving an early indication as to the health of corporate America.

General Electric numbers are out and the Street has sent the shares down 7% in pre-market trading. 

Despite growth expectations, GE’s first-quarter profit forecast for the combined operations has fallen short of Street estimates.

The company predicts EPS of 60 to 65 cents a share, below the 70-cent average of analyst estimates compiled by Bloomberg.

Fourth quarter revenue rose 15% to $19.4 billion with adjusted revenue up 13% to $18.5 billion.

Continuing EPS was $1.44 with adjusted EPS of $1.03.

Also quick out of the blocks, Johnson & Johnson (NYSE:JNJ) has reported fourth quarter EPS of $1.70, up 39.3% and adjusted EPS of $2.29 increasing by 11.7%.

Full-Year reported sales grew 6.5% to $85.2 billion with operational growth of 7.4% and adjusted operational growth of 5.9%. 

Operational growth excluding Covid-19 vaccines was 9.0%.

"Johnson & Johnson (NYSE:JNJ)'s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients," said Chair & Chief Executive Joaquin Duator. 

"We have entered 2024 from a position of strength, and I am confident in our ability to lead the next wave of health innovation."

Shares are 0.8% lower in pre-market.