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

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

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

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

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 and Broadcom.

Bespoke noted that all 10 stocks included in the index are trading higher during Wednesday's session. Up 12%, Netflix shares lead the index's gains one day after the streaming service topped fourth-quarter revenue estimates and added more subscribers than analysts expected.

— Lisa Kailai Han

The Dow underperformed on Wednesday, hurt by a slide in Verizon stock.

The blue-chip average traded slightly below flat, while the broad S&P 500 gained 0.3%. At session highs, the Dow climbed more than 150 points, 0.4%.

Part of that underperformance came from Verizon, which slipped more than 2%. 3M was the next worst performer, shedding 1.4%. Both companies reported earnings on Tuesday.

— Alex Harring

A rally among technology names aided the S&P 500 as the broad index climbed to new highs.

Communication services and information technology were among the best performing sectors of the 11 that comprise the index, with gains of more than 1% each. As a whole, the S&P 500 increased about 0.3%, on track for yet another record close.

Energy also rose more than 1%, while financials advanced 0.6%.

Those against outweighed losses seen in other sectors. Most notably, the real estate, materials and utilities sectors each slipped more than 1%.

— Alex Harring

The Nasdaq 100 has climbed more than 60% so far in the current bull run and is now just shy of 6% above its all-time high, according to Bespoke Investment Group. The large-cap technology-focused index has also rallied around 150% off its low seen in March 2020, data from the firm shows.

— Alex Harring

CNBC's Jim Cramer said Wednesday that he would buy four Chinese stocks benefitting from Beijng's big monetary policy easing measures, if he were running a hedge fund.

"I would buy the stocks of Alibaba, Baidu, PDD Holdings and JD.Com," Cramer said during the CNBC Investing Club's Monthly Meeting livestream. "That's right. All four. They are the cheapest they have ever been." 

China pledged to reserve ratio requirements for banks by 50 basis points from Feb. 5. This is the first reduction in reserve requirements this year in a bid to boost its struggling economy, after two cuts last year. 

— Matthew Belvedere

Netflix shares are up more than 12% on the back of strong fourth-quarter subscriber numbers.

But even with Wednesday's move, the stock still sits 20% off of its all-time closing high of $691.69 per share achieved in November 2021, Bespoke Investment Group notes.

The streaming giant's rallied more than 230% since its mid-2022 closing low. It's gained more than 13% in 2024 following last year's 65% surge.

— Samantha Subin

U.S. crude oil prices rose more than 1% on Wednesday after domestic production took a substantial hit from winter storms earlier this month.

The West Texas Intermediate contract for March rose 97 cents, or 1.3%, to trade at $75.34 a barrel. The Brent contract for March was up 80 cents, or 1.01%, to trade at $80.35.

Prices rose after crude production in the U.S. fell by an estimated 1 million barrels per day during the week ending Jan. 19, according to the Energy Information Agency. U.S. commercial crude inventories also fell by 9.2 million barrels during the same period.

Surging U.S. crude production has weighed on prices for months as traders worry supply is outstripping demand as the economy slows in China.

Beijing also provided a more bullish signal Wednesday when the central bank announced that it would reduce liquidity requirements for financial institutions to help boost economic growth.

— Spencer Kimball

Shares of Ford Motor declined 2% after the company announced Wednesday it would recall more than 2 million Explorer SUVs worldwide.

The recall includes Explorer models from the 2011 through 2019 model years. The automaker cited issues with a trim piece on the roof coming loose.

— Hakyung Kim

Berkshire Hathaway shares rose to all-time highs during Wednesday's trading. Class A shares of the Omaha-based conglomerate gained more than 1% to hit an intraday record high of $572,325.80 apiece. Meanwhile, Class B shares climbed a similar 1% to a peak of $377.59, the highest level since the shares were created back in 1996.

Warren Buffett's juggernaut has rallied more than 5% this month, outperforming the S&P 500.

— Yun Li

These are some of the stocks posting notable moves in midday trading:

• Netflix – The streaming stock popped nearly 13% after topping fourth-quarter revenue estimates and posting strong subscriber growth.
• SAP — The German software stock surged 7%, a day after announcing plans for voluntary buyouts.
• Advanced Micro Devices — The chip stock popped 6.7% after being upgraded by New Street Research to buy. 

See the full list here.

— Alex Harring, Samantha Subin

Shares in staid, old International Business Machines, founded before World War I and creator of the bar code in 1973, on Wednesday touched their highest level since October 2014 ahead of fourth-quarter results due to be released after the market close.

Evercore ISI analysts led by Amit Daryanani wrote on Monday that "we expect in-line to modest upside vs. consensus revenue/EPS estimates ($17.2B/$3.77)," helped in part by currency tailwinds provided by what had been a weakening dollar since IBM last reported in October. "We also expect IBM to initiate CY24 guidance (potential for modest upside) during their upcoming print with outlook for annual FCF being the key focus area (we expect IBM to guide to $11.0-11.5B in FCF)," Evercore said.

Evercore rates IBM outperform with a $200 price target, against analysts' consensus rating according to FactSet of hold and price target of $161.

IBM earnings per shares estimates for the quarter ending in March 2024 have risen 2% in the past month, FactSet says. The stock is selling for a trailing price-to-earnings ratio of 23.1 now against a five-year average P/E multiple of of 29.5, and still yields 3.8%.

— Scott Schnipper, Michael Bloom

Netflix climbed almost 12% in late morning trading, making the streaming giant poised to see its best session in more than three months.

Shares surged after the big technology company reported a record number of subscribers and better-than-expected revenue. If that gain holds through Wednesday's closing bell, it would mark the stock's best day since Oct. 19, when shares climbed slightly more than 16%.

— Alex Harring

January's preliminary consumer sentiment data showed a slight increase in confidence about the economy — but it has yet to reach pre-pandemic levels, according to Bank of America.

The firm underscored a "vibecession," in which economic data is strong but consumer sentiment remains tepid. The Misery Index, which is calculated using the sum of the unemployment rate and the yearly percentage change in inflation, has typically had a negative correlation with consumer sentiment, according to U.S. economist Jeseo Park.

However, Park noted that the Misery Index and consumer sentiment are not as closely correlated as in the past.

"The degree to which sentiment has picked up has been far less than that of the inverted Misery index—taking us back to the concept of "vibecession". However, we think that term may have run its course, and sentiment should ease further as inflation continues to cool and Fed begins to cut interest rates," Park wrote in a Wednesday note.

— Hakyung Kim

Microsoft shares gained 1.4% on Wednesday, boosting the software giant above a $3 trillion market capitalization for the first time on record.

The $3 trillion market cap club is also home to Apple, Earlier this month, Microsoft topped Apple as the most valuable company worldwide. Apple later reclaimed that spot, with its market cap hitting $3.03 trillion during Wednesday's session.

Microsoft first closed above a $2 trillion market cap in June 2021.

— Samantha Subin

Bank stocks could prove to be a "coiled spring" as funds reduce exposure, according to Bank of America strategist Savita Subramanian.

Exposure to banks in the S&P 500 is about 12 percentage points lower than where it started 2023, Subramanian noted. And it's just about 3 percentage points off the lows reached as investors sold off following the Silicon Valley Bank shutdown

"Funds dropped exposure to Banks, despite the strong year-end rally," she told clients.

But industries in new media like entertainment are positioned compared to banks at more than 1 standard deviation above average. Subramanian said that can be a precursor to banks overperforming the sector over the next 12 months.

— Alex Harring

A measure of manufacturing activity in the U.S. hit its highest level in 15 months for January, while the services sector outperformed as well, according to readings Wednesday from S&P Global.

The flash purchase managers index reading for manufacturing came in at 50.3, representing the percentage of companies seeing expansion. Economists surveyed by Dow Jones had been looking for 47.2.

On the services side, the flash PMI showed a reading of 52.9, a seven-month high and ahead of the 51.2 estimate.

There also was positive news on the inflation front: Companies increased selling prices at the slowest pace since May 2020.

—Jeff Cox

The three major indexes were up as Wednesday's trading session began.

The Dow was up more than 100 points, or about 0.3%, shortly after 9:30 a.m. ET. The S&P 500 added 0.6%. The Nasdaq Composite climbed 0.8%, helped by a rally in Netflix.

— Alex Harring

Copper future prices rose to an intraday high of $3.8870, hitting the highest level in three weeks. The advance came after rising expectations for more stimulus measures from China, a top metals consumer. China on Wednesday pledged to reduce the amount of liquidity that its banks are required to hold as reserves early next month in a bid to boost its struggling economy.

— Yun Li, Gina Francolla

These are some of the companies making notable moves before the bell on Wednesday:

• Netflix— Netflix's stock price jumped 9.2% after topping analysts' revenue and subscriber growth expectations during the fourth quarter. The streaming giant added 13.1 million subscribers during the quarterly period, reaching a record 260.8 million in paid subscribers.
• Tesla— The electric vehicle stock added 1.3% ahead of its quarterly earnings due after market close. Fourth-quarter revenue is expected to come out at $25.63 billion and earnings at 73 cents per share, according to FactSet consensus estimates. 
• EBay — Online marketplace EBay gained more than 3% after announcing plans on Tuesday to lay off 9% of the company's workforce, or about 1,000 full-time jobs, over the coming months. EBay's CEO said that the company's "overall headcount and expenses have outpaced the growth" of its business.

For the full list, read here.

Abbott Laboratories slipped more than 2% before the bell as investors parsed the health care company's fourth-quarter earnings report.

The company posted adjusted earnings per share that came in line with the consensus forecast of analysts polled by FactSet at $1.19. Abbott reported $10.24 billion in revenue for the quarter, topping the estimate of $10.19 billion.

Looking ahead, Abbott told investors to anticipate between $4.50 and $4.70 in adjusted earnings per share for the full year, a range that contains the $4.63 figure analysts expect.

— Alex Harring

Shares of Dupont de Nemours sank 11% early Wednesday morning after the chemical company preannounced fourth-quarter and first-quarter guidance that disappointed analyst expectations.

Dupont guided for fourth-quarter revenue of $2.90 billion, less than FactSet's estimate of $3 billion. The company's first-quarter adjusted earnings guidance of between 63 cents to 65 cents per share was also below the current expectation of 88 cents. Meanwhile, the company also guided for first-quarter revenue of $2.8 billion, lower than analyst consensus of $3.04 billion.

Wednesday's losses mean that the company is now down nearly 3% this year.

— Lisa Kailai Han

AT&T shares were down more than 2% after the telecom giant posted fourth-quarter results. The company posted a profit of 30 cents per diluted share. However, it wasn't immediately clear if that was comparable to an LSEG estimate of 56 cents per share.

— Fred Imbert

China will cut the amount of liquidity that banks are required to hold as reserves from early next month.

Reserve ratio requirements for banks will be cut by 50 basis points from Feb. 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital, People's Bank of China Governor Pan Gongsheng said at a press conference.

Reducing the reserve requirements that banks must maintain will increase the capacity for lenders to extend loans and spur spending in the broader economy.

It comes as Beijing seeks to bolster growth, while deleveraging its once-bloated real estate sector, which accounts for about one-third of its economic activities.

This is the central bank's first reduction in reserve requirements this year, after cutting RRR twice last year. The PBOC said there's room for further monetary policy easing.

Read the full story here.

— Evelyn Cheng and Clement Tan

Shares of Chinese tech giant Alibaba surged almost 6% after founder Jack Ma reportedly bought $50 million worth of its Hong Kong stock in the fourth quarter.

Citing people familiar with the matter, the New York Times reported that along with Ma, Alibaba chairman Joe Tsai also bought $151 million worth of Alibaba's U.S.-traded shares in the fourth quarter via his Blue Pool Management family investment vehicle.

According to a Hong Kong exchange filing on Jan. 2, Alibaba bought back $9.5 billion of its shares in Hong Kong over 2023, resulting in a reduction of about 3.3% of its shares.

— Lim Hui Jie

Japan's exports grew 9.8% year-on-year in December, reversing from a 0.2% fall in the previous month and beating expectations of a 9.1% rise from economists polled by Reuters.

Imports to the world's third-largest economy fell 6.8% year-on-year in December, a smaller contraction compared with November's 11.9% decline, but steeper than the 5.3% expected from the Reuters poll.

As such, Japan's trade balance for December stood at a $62.1 billion surplus, compared with a $780.4 billion deficit in November.

For the whole of 2023, Japan's total exports climbed 2.8% year-on-year to 100.89 trillion yen, while imports fell 7% in the same period to 110.17 trillion yen.

— Lim Hui Jie

Australia's factory activity expanded for the first time in 11 months, according to flash data from Juno Bank.

The country's manufacturing purchasing managers' index for January came in at 50.3, up from December's figure of 47.6.

Service sector activity contracted at a slower pace, with the services PMI at 47.9 compared with December's 47.1.

Overall, business activity in Australia also saw a slower contraction, with the composite PMI at 48.1 against 46.9 in December.

A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.

— Lim Hui Jie

Check out the companies making headlines in extended trading.

Netflix — The streaming service jumped 8.5% after the company reported 13.1 million new subscribers, pushing its total membership count to an all-time high of 260.8 million paid subscribers. Netflix also posted a revenue beat during the fourth quarter. The company reported $2.11 earnings per share on $8.83 billion in revenue. Analysts polled by LSEG had forecasted $2.22 earnings per share on $8.72 billion in revenue. 

Texas Instruments — Shares fell 4% after the company issued weak first-quarter earnings and revenue guidance. Texas Instruments is estimating earnings per share to fall between 96 cents and $1.16, versus consensus estimates of $1.41, per LSEG. Revenue is also expected to come in lower, in a range of $3.45 billion to $3.75 billion, compared to estimates of $4.06 billion.

The full list can be found here.

— Hakyung Kim

U.S. stock futures rose Tuesday evening.

Dow Jones Industrial Average futures added 16 points, or 0.04%. Meanwhile, the S&P 500 and Nasdaq Composite gained 0.15% and 0.20%, respectively.

— Hakyung Kim