Nasdaq, S&P 500 close higher for fifth straight day as Netflix shares surge: Live updates

NEW YORK, NEW YORK - JANUARY 22: Traders work on the floor of the New York Stock Exchange during afternoon trading on January 22, 2024 in New York City. The Dow Jones and S&P both hit all time highs with the Dow Jones closing over 38,000 points for the first time ever as stocks continue to rise. (Photo by Michael M. Santiago/Getty Images)
Michael M. Santiago | Getty Images News | Getty Images

The S&P 500 rose Wednesday as Netflix led a broader rally among technology names, pushing the broader market to new heights.

The benchmark S&P 500 eked out a gain of 0.08% to 4,868.55, clinching a new all-time closing record. The Nasdaq Composite rose 0.36% to 15,481.92, helped by the tech rally. It marked the fifth straight day of wins for both.

The Dow Jones Industrial Average slipped 99.06 points, or 0.26%, to 37,806.39, hurt by declines of more than 2% in Verizon and 3M a day after each reported earnings.

Netflix shares surged more than 10% after the streamer said its total subscriber count hit an all-time high of 260.8 million. Revenue topped analysts' estimates, as did current-quarter earnings guidance.

The earnings report "is a pretty decent tailwind," said Charlie Ripley, senior strategist at Allianz Investment Management. More broadly, "people thought things were fairly balanced, or maybe even positioning for more downside risks, as growth in the economy or activity in the economy continues to decline. But what we've kind of seen is things have been more resilient."

Elsewhere, Microsoft rose nearly 1%, sending its market value briefly higher than $3 trillion for the first time. Meta advanced 1.4%, bringing the Facebook parent's market cap above $1 trillion.

Both gains added to mega-cap tech's strong performance in 2024, which have propelled the S&P 500 to record highs and confirmed a new bull market. Communication services and information technology stocks boosted the broad index on Wednesday, up 1.2% and 0.8%, respectively.

Beyond technology, AT&T slipped about 3% on lower-than-expected earnings. DuPont De Nemours tumbled 14% after preannouncing weak fourth-quarter results and issuing disappointing first-quarter guidance.

Earnings reports will remain a focus of traders, with Tesla, Las Vegas Sands and IBM due after the bell. Of the more than 16% of S&P 500 companies that have reported quarterly financials thus far in the earnings season, over 71% have surpassed Wall Street expectations, according to FactSet.

"The markets are very bullish," said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. And "the key thing right now is the reaction to earnings."

Nasdaq and S&P 500 close higher; Dow retreats

The S&P 500 and Nasdaq Composite finished Wednesday's session higher.

The broad S&P 500 eked out a narrow gain, clinching another all-time closing record. The Nasdaq finished 0.4% higher as Netflix and other technology rallied.

The Dow underperformed, finishing the session about 0.3% down.

— Alex Harring

M&A activity is 'on the way up,' Barclays says

Dealmaking activity is set to resume in 2024 as traders anticipate the start of rate cuts this year, Barclays said.

"We see a recovery in M&A and capital market activity as an important theme for 2024," Emmanuel Cau said in a note titled "M&A/capital market activity on the way up." "Financial conditions are starting to improve with lower rates, credit market is fully functional, corporate fundamentals are solid and a strong USD may prompt more cross-regional deals."

Cau recommends small- and mid-caps, and banks ahead of the recovery. He also upgraded diversified financials to overweight.

— Sarah Min

Bitcoin ETFs saw net outflows on Monday, JPMorgan says

Outflows from the Grayscale Bitcoin Trust (GBTC) continue to cast a shadow on the new bitcoin ETFs, according to data from JPMorgan.

Analyst Kenneth Worthington said in a note to clients on Wednesday that the bitcoin ETFs saw a net of $85 million in outflows on Monday, thanks to the more than $500 million coming out of the Grayscale fund.

Overall, Grayscale's fund has now seen more than $3.4 billion in outflows, offsetting most of the roughly $4.5 billion brought in by the nine other bitcoin ETFs.

Funds from BlackRock (IBIT) and Fidelity (FBTC) have been the early winners, combining for more than $3 billion in net inflows, including more than $400 million on Monday.

The decline in bitcoin since the approval of the funds could be a sign that investors have been disappointed in the demand for the ETFs so far. Bitcoin was trading at just over $40,000 on Wednesday after breaking above $49,000 earlier in January.

— Jesse Pound

NYSE tech titan index on pace for best day since August 2023, according to Bespoke

In another show of the technology sector's strength, the NYSE FANG+ Index is up 2.9% today and on track to notch its best day since August 2023, Bespoke Investments shared in a tweet.

The index tracks 10 of the top-traded tech titans and includes Meta, Apple, Amazon, Netflix, Microsoft, Google, Tesla, Nvidia, Snowflake