Netflix shares surge on strong earnings

The S&P 500 closed near a record high on Wednesday, driven by gains in AI-related companies. The index advanced 0.6% to finish just 4 points short of a record closing high. The Nasdaq surged 1.3%, while the Dow Jones Industrial Average gained 0.3%.

Only Tech and Comm Serv rose today; Utilities fell most but sector still has a relatively strong YTD gain … given Tech and Comm Serv bias today, NASDAQ and Russell 1000 Growth outperformed (and are now closer to even YTD with other sectors that have been in the lead) pic.twitter.com/9V6y5ZaP3t

— Liz Ann Sonders (@LizAnnSonders) January 22, 2025

This marks the third consecutive session of gains. Netflix was a standout performer, with shares soaring nearly 10% after reporting strong fourth-quarter earnings. The company added 19 million new subscribers and increased its revenue outlook for 2025.

Stock Market LIVE: Sensex up 250 points, Nifty above 23200; IT index up more than 2%https://t.co/tA9v1EUKP1

— ET NOW (@ETNOWlive) January 23, 2025

Analysts at JPMorgan noted the company’s strong programming slate as a driving factor behind the upbeat results.

Morning Report : S&P 500 index hits record high on Netflix results, AI investment planshttps://t.co/aJiMvH6nFb

— CommSec (@CommSec) January 22, 2025

Oracle shares rose 6.8%, adding to a 7% surge the previous day after announcing a partnership with Microsoft-backed OpenAI and Japan’s SoftBank on a $500 billion AI infrastructure project. Mega-cap technology stocks also performed well, with Nvidia and Microsoft each advancing more than 4%.

Netflix stock climbs on strong earnings

Several big-name companies reported gains following their earnings announcements. Insurer Travelers rose 3.1%, consumer products giant Procter & Gamble gained 1.9%, and energy company GE Vernova increased by 2.7%. However, Johnson & Johnson fell nearly 2% due to a weaker-than-anticipated sales outlook. Bitcoin traded at $104,000, down from an overnight high near $107,000. The digital currency has gained nearly 50% since the November election, buoyed by hopes that the new administration will support the cryptocurrency market. Gold futures were up 0.3% at around $2,765 an ounce, while WTI crude oil futures fell 0.5%. JPMorgan Chase CEO Jamie Dimon expressed cautious pessimism about the U.S. stock market, stating that asset prices are “kind of inflated.” While U.S. stocks have been top performers globally, Dimon pointed to elevated asset values as a reason for his tempered outlook. Overall, the market remains buoyant, driven by strong earnings and positive investor sentiment, particularly in the technology and AI sectors. However, challenges remain as policy shifts and economic uncertainties continue to influence market dynamics.