US stocks rose on Tuesday as technology and internet stocks gained on Netflix’s plans to raise fees for US subscribers and hopes of more stimulus for China’s slowing economy fostered a risk-on mood among investors.
Netflix shares jumped 6.5 per cent after the video streaming company said it was raising prices for its US subscribers. Other internet stocks, including shares of Alphabet, Amazon.com and Apple, also rose following the announcement.
The S&P 500 communication services index, which includes Netflix and Alphabet, climbed 1.7 per cent. S&P 500 technology stocks advanced 1.5 per cent. Stocks also found support from hints by Chinese officials at more stimulus in the near term, easing concerns about a slowdown in the world’s second-largest economy.
Wall Street’s major indexes briefly pared some gains after the British parliament defeated Prime Minister Theresa May’s Brexit divorce deal by a wide margin. The S&P 500 and the Nasdaq still closed near the session’s highs, however.
The Dow Jones Industrial Average rose 155.75 points, or 0.65 per cent, to 24,065.59, the S&P 500 gained 27.69 points, or 1.07 per cent, to 2,610.3 and the Nasdaq Composite added 117.92 points, or 1.71 per cent, to 7,023.83.
Earlier in the day, gains were capped by disappointing earnings reports from big U.S. banks. JPMorgan Chase & Co, the largest US bank by assets, missed quarterly profit estimates due to a slump in bond trading revenue, while Wells Fargo & Co said its loan book shrank and quarterly revenue fell in all of its major businesses. JPMorgan shares erased the early losses and ended 0.7 percent higher. Wells Fargo shares pared losses to end 1.5 per cent lower.
Morning-Market-Note-Wednesday-16th-January