Stocks Trim Early Gains; Netflix Surges On New Subscriber Growth

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The major market averages trimmed early gains Tuesday as FANG stock Netflix ( NFLX ) soared after its Q4 earnings release in the stock market today . The tech-heavy Nasdaq rose 0.3%, while the S&P 500 and Dow Jones industrial average fell about 0.1% apiece.

[ibd-display-video id=3100183 width=50 float=left autostart=true] Among the Dow Jones industrials , Verizon Communications ( VZ ) reversed from solid early gains to fall 0.4% after its quarterly sales results topped estimates , even as its earnings came in a bit light.

Elsewhere in the Dow, Johnson& Johnson ( JNJ ) topped the Street's targets, but the stock fell 2% in early trade. The stock is just above a 144.45 flat-base buy point after a breakout on Jan. 9.

Among companies reporting earnings , Netflix surged 10% after reporting a strong surge in new subscribers with 8.33 million additions compared to its 6.3 million target. The stock is extended from a 204.48 flat-base buy point after a breakout on Jan. 3.

Fellow FANG Facebook ( FB ) looked to extend its win streak to four trading sessions after a recent sell-off back to its 50-day line and 175.59 flat-base entry. The stock rose 1.2% to trade near a new high.

Tesla ( TSLA ) jumped nearly 1% after the company updated its pay package for CEO Elon Musk to tie his compensation solely to key performance benchmarks, like a $650 billion market cap. The stock currently has about a $60 billion market cap, as it builds the right side of a potential base.

Solar stocks were on the move Tuesday amid President Trump's decision to impose a 30% tariff on imported solar panel technology. Among the winners was First Solar (FSLR) which advanced 6% and looked to snap a three-day downdraft. Shares are well-extended from their most recent buy point.

China-based Daqo New Energy (DQ) reversed from heavy losses to rise over 1%. It too is extended from a buy point after finding support several times at the 10-week moving average line.

Inside the IBD 50 , Coherent (COHR) declined nearly 4% to fall through its 50-day line and further trigger the 7%-8% loss-cutting rule from a 320.83 late-stage buy point. Later-stage bases are more prone to failure than earlier-stage ones.

Elsewhere, New Oriental Education (EDU) declined 5% after missing its fiscal-Q2 earnings estimates early Tuesday, as revenue came in stronger than expected. Shares are battling for support at their 94.73 buy point after it broke out of the flat base on Dec. 29. Investors should also watch to see if the stock can find much-needed support at the 50-day line.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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