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Key Takeaways
- The S&P 500 climbed 0.1% on Wednesday, Jan. 24, 2024, boosted by tech earnings and a surge in Netflix shares amid solid revenue and subscriber growth.
- Textron shares moved higher after the defense contractor reported higher-than-anticipated quarterly profits and issued an upbeat forecast for 2024.
- Shares of DuPont de Nemours plunged after the chemical giant issued a profit warning, citing weak demand from China.
Positive earnings reports from several tech firms reinforced optimism about an upsurge driven by artificial intelligence (AI), while results in the materials and consumer staples sectors raised concerns about demand and profitability.
The S&P 500 edged higher by 0.1%, adding to its streak of new records to post another all-time closing high. The Nasdaq advanced 0.4%, lifted by strength in the tech sector. After moving higher in the morning, the Dow changed course to close the session with a loss of 0.3%.
Netflix (NFLX) was the S&P 500’s top performer on Wednesday, with shares surging 10.7% after the company posted better-than-expected revenue growth of 12% year over year in the fourth quarter. The video streaming service benefitted from strong subscriber growth, boosted by its tiered pricing structure and crackdown on password sharing.
Shares of Textron (TXT) jumped 7.8% after the aerospace and defense conglomerate exceeded earnings per share (EPS) estimates for the fourth quarter and issued an upbeat forecast for 2024. The manufacturer of specialty aircraft highlighted an increased backlog in its aviation segment, suggesting that demand remains strong despite competitive and operational challenges.
TE Connectivity (TEL), which provides sensor solutions to various industries, also benefitted from a strong earnings report. Shares advanced 6.7% after the Switzerland-based firm exceeded profit estimates and released positive guidance, citing strong demand from the electric vehicle (EV) industry.
Wednesday’s steepest losses on the S&P 500 belonged to DuPont de Nemours (DD). Shares plunged 14.0% after the chemical giant warned channel inventory destocking and soft demand from China would have a negative impact on its results.
Shares of Kimberly-Clark (KMB) sank 5.5% after the maker of household products reported weaker-than-expected sales and profits for the fourth quarter. Dollar strength acted as a headwind for the consumer products company, reducing its revenue from international markets.
Although industrial technology provider Teledyne Technologies (TDY) beat profit expectations for the fourth quarter, revenue fell short of forecasts, and the firm guided for 2024 earnings to come in below 2023 levels. Teledyne shares tumbled 5.4%.