U.S. stocks moved in and out of positive territory Wednesday as tech and real estate company weaknesses offset the effect of China issuing a stronger-than-expected report on its first-quarter economic growth.
Continue Reading Below
The Chinese data indicated gross domestic product growth held steady at 6.4 percent in the first quarter as manufacturing picked up significantly amid signs authorities worked forcefully to stabilize business.
MORE FROM FOXBUSINESS.COM …
However, Netflix shares fell, weighing on the Nasdaq Composite. While quarterly earnings for the streaming service grew by double-digit percentage points in the first quarter of 2019, the streaming giant forecast a weaker second quarter and the pace of new U.S. subscribers slowed.
Netflix is under pressure as a slew of new streaming video sites seek to challenge the company’s dominance in the industry, also putting more importance on growth outside of the U.S.
Despite Netflex shares falling, the Nasdaq 100 index hit an intraday all-time high. If it closes above 7,660.18 it will be a record closing high as well. The Nasdaq 100 tracks the 100 largest non-financial stocks in the Nasdaq Composite, and it’s the basis for Nasdaq futures.
Ticker Security Last Change %Chg QCOM QUALCOMM INC. 77.35 +6.90 +9.79% NFLX NETFLIX INC. 358.87 -0.59 -0.17% IBM INTERNATIONAL BUSINESS MACHINES CORP. 140.72 -4.42 -3.05% ATVI ACTIVISION BLIZZARD INC. 44.59 -0.47 -1.05%
The Nasdaq Composite is approximately 1 percent below its record close of 8,109.69 on Aug. 29.
A number of Wall Street analysts upgraded their ratings on Qualcomm stock and boosted their price target for the shares after the chipmaker settled its long-running royalty fight with Apple.
As part of the agreement, Qualcomm will receive a payment from Apple, the pair of companies said Tuesdady, sending shares of the chipmaker rocketing more than 23 percent higher shortly after the announcement. Investors extended those gains Wednesday.