By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Netflix soars after better-than-expected results, tops $100
billion in market capitalization
Most U.S. stocks rose on Tuesday, with major indexes inching up
to record levels a day after a partial shutdown of the government
was ended.
While the shutdown had only a limited effect on stocks, the end
removed an element of political uncertainty from the market,
allowing investors to focus more fully on corporate earnings, which
have so far been strong, albeit with the variable of the recently
passed tax law.
What are the main benchmarks doing?
The Dow Jones Industrial Average rose 30 points to 26,240, a
rise of 0.1%. The S&P 500 index rose 8 points, or 0.3%, to
2,841. The Nasdaq Composite Index was up 45 points, or 0.6%, to
7,454.
Read: Stock market headed for 'nasty surprise' if this signal
proves correct
(http://www.marketwatch.com/story/why-a-slowdown-in-cash-flow-growth-is-bad-news-for-stocks-2018-01-22)
All three hit records in early trading, the latest example of
Wall Street's seemingly unstoppable upward trend. The three indexes
have enjoyed essentially uninterrupted gains throughout 2018. Of
the 15 sessions of 2018 thus far, the Dow is on track to have risen
in 11 of them, while both the S&P and the Nasdaq are set for
their 12th.
What's driving markets?
After U.S. markets closed on Monday, Congress passed a
three-week funding measure
(http://www.marketwatch.com/story/shutdown-averted-for-now-as-congress-passes-temporary-budget-measure-2018-01-23)
that brought a halt to the three-day shutdown, with the bill then
signed by President Donald Trump. The agreement keeps the
government running up to Feb. 8, though underlying disagreements
between the Republicans and the Democrats on immigration and other
topics remain.
With that crisis averted for now, there is little to stop stocks
from pushing out yet another set of records. Investors who have
been buying stocks on the view that the economy is on an upswing
were likely cheered by Monday's upbeat global outlook from the
International Monetary Fund
(http://www.marketwatch.com/story/imf-sees-risk-of-a-financial-market-correction-2018-01-22).
There are no economic data due Tuesday.
Investors were likely to watch for comments from financial and
business leaders who are gathering in Davos, Switzerland, for the
World Economic Forum, which kicked off Tuesday. With a shutdown
averted, President Trump is expected to attend and is scheduled to
speak on Friday.
Read:Stock markets don't need a 'trigger' to correct, says
Robert Shiller
(http://www.marketwatch.com/story/stock-markets-dont-need-a-trigger-to-correct-says-robert-shiller-2018-01-23)
Also see:Head of world's largest hedge fund says 'if you're
holding cash, you're going to feel pretty stupid'
(http://www.marketwatch.com/story/head-of-worlds-largest-hedge-fund-says-if-youre-holding-cash-youre-going-to-feel-pretty-stupid-2018-01-23)
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
(http://www.marketwatch.com/economy-politics/calendars/economic)What
are strategists saying?
"We're just starting to put together the puzzle of how the tax
law will impact companies across the economy. Some are showing a
significant benefit while others are announcing big write-offs,"
said Tom Plumb, chief investment officer of Plumb Funds.
"Ultimately I think the impact will be positive, and we're going
to see earnings estimates revised higher, but you do have to be
concerned about valuations at current levels. I think any company
with recurring revenue streams will continue to reflect a positive
trend, but it is hard to say that any part of the market looks
inexpensive."
Read:Why ditching stocks in this bull market is a 'dangerous'
move
(http://www.marketwatch.com/story/dont-ditch-the-bull-market-its-dangerous-to-be-out-of-stocks-top-uk-fund-manager-says-2018-01-16)
Which stocks are in focus?
Netflix Inc. (NFLX) jumped 10% to a record high after it beat
forecasts for earnings and new
(http://www.marketwatch.com/story/netflix-hits-100-billion-market-cap-after-fourth-quarter-results-2018-01-22)
net subscribers
(http://www.marketwatch.com/story/netflix-hits-100-billion-market-cap-after-fourth-quarter-results-2018-01-22).
With the gain, the company topped a $100 billion
market-capitalization valuation for its first time ever.
Read: Netflix sees sharks approaching from both sides in Apple
and Disney
(http://www.marketwatch.com/story/netflix-sees-sharks-approaching-from-both-sides-in-apple-and-disney-2018-01-22)
(http://www.marketwatch.com/story/netflix-sees-sharks-approaching-from-both-sides-in-apple-and-disney-2018-01-22)And:Kevin
Spacey scandal cost Netflix $39 million
(http://www.marketwatch.com/story/sexual-harassment-scandals-cost-netflix-39-million-2018-01-22)
Travelers Cos. (TRV) rose 3.9% after the insurer's revenue and
profit beat forecasts
(http://www.marketwatch.com/story/travelers-reports-q4-profit-revenue-beats-in-spite-of-california-wildfires-2018-01-23).
(http://www.marketwatch.com/story/travelers-reports-q4-profit-revenue-beats-in-spite-of-california-wildfires-2018-01-23)Procter
& Gamble(PG) fell 2.7% after earnings and sales beat forecasts,
but income was lower than the same period a year ago.
(http://www.marketwatch.com/story/pg-earnings-and-sales-beat-expectations-2018-01-23)
(http://www.marketwatch.com/story/pg-earnings-and-sales-beat-expectations-2018-01-23)Verizon
Communications(VZ) shares fell 0.4% after a sales beat and
tax-reform boost helped offset a miss on profit.
(http://www.marketwatch.com/story/verizons-stock-gains-as-sales-beat-tax-reform-benefit-helped-offset-profit-miss-2018-01-23)
Johnson & Johnson(JNJ) reported an increase in sales for its
fourth quarter
(http://www.marketwatch.com/story/jj-earnings-lifted-by-pharma-sales-growth-2018-01-23),
largely spurred by its pharmaceutical business, but reported a loss
because of effects from the new tax law. Shares fell 2.2%.
Travelers, P&G, Verizon, and J&J are all Dow
components.
First Solar Inc. (FSLR) rose 0.8% after the U.S. government
approved tariffs on solar-panel imports
(http://www.marketwatch.com/story/us-targets-china-with-steep-tariffs-on-solar-panels-washing-machines-2018-01-22).
Shares of Whirlpool Corp.(WHR) jumped 2.6% as tariffs were also
approved for imported washing machines for home use.
What are other assets doing?
The ICE U.S. Dollar Index
(http://www.marketwatch.com/story/dollar-rebounds-slightly-as-3-day-government-shutdown-comes-to-a-halt-2018-01-23)
was unchanged on the day. Monday's U.S. stock gains fueled a rise
for European stocks , with the German DAX jumping to a record high
(http://www.marketwatch.com/story/germanys-dax-jumps-to-record-high-as-us-shutdown-ends-2018-01-23),
and Asian markets, which saw 1%-plus gains across several markets
(http://www.marketwatch.com/story/asian-markets-heat-up-after-fresh-records-on-wall-street-2018-01-22).
Gold prices were flat, while oil futures
(http://www.marketwatch.com/story/oil-prices-edge-up-after-saudi-urges-producers-to-cooperate-into-2019-2018-01-22)were
higher
(http://www.marketwatch.com/story/oil-prices-extend-gains-on-hopes-for-another-fall-in-us-supply-2018-01-23).
(END) Dow Jones Newswires
January 23, 2018 11:42 ET (16:42 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.