NFLX Netflix Inc

Shares of tech companies fell after mixed earnings reports. Shares of computer-services giant International Business Machines (IBM) fell more than 7% to a two-year low after it reported a decline in quarterly revenue, hurt by lower demand in some of the areas it has identified as strategic priorities, including artificial intelligence.

Netflix (NFLX) shares rallied after the streaming service posted surprisingly strong subscriber growth.

"Successful expansion into new genres (self-produced rom-coms and unscripted television of late) and growth in new geographies (India and broader Asia) suggest that '19 could see further growth," said strategists at brokerage Morgan Stanley, in a note to clients, arguing that this year could be the strongest in Netflix's history for "global net adds" of subscribers.

Electric-car maker Tesla (TSLA) gained a foothold in the world's biggest market for electric vehicles, completing the purchase of land for its new Shanghai plant, the company said.

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

October 17, 2018 16:40 ET (20:40 GMT)

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