- Markets check: US stocks jumped on conflicting reports about China-US trade but closed off their highs.
- Netflix released some gonzo viewership numbers. But how accurate are they?
- Earnings: Morgan Stanley disappointed Wall Street.
Our very own Frank Pallotta took a spin through the eye-popping Netflix numbers and had some thoughts.
"The watch-it-your-way flexibility of streaming presents challenges to anyone trying to draw a comparison to traditional film in regards to audience.
It would be difficult, for example, to say what the activity of 45 million accounts equates to in traditional box office terms. It's also unclear -- though presumable -- that the number reflects accounts that have accessed the film globally. (Netflix is currently available in more than 190 countries.)
Exactly how Netflix qualifies what counts as a viewing is another question. Does the figure account for those who accidentally play the film from an auto-play option? Does it log "viewers" who only watch a few seconds or the entire film?"
However, Netflix's sales were just a tiny bit below Wall Street's consensus estimates. That's not good enough for a stock that had surged more than 25% already this year. Shares fell 4% in after hours trading. But make no mistake. There's nothing wrong with Netflix. It's just a victim of Dickensian Great Expectations. (By the way, the 1998 version of Great Expectations with Ethan Hawke, Gwyneth Paltrow and Robert De Niro is not available on Netflix.)
The Dow had been up as much as 267 points at one point.
Wall Street briefly celebrated a report suggesting the Trump administration could dial back tariffs on China.
But the rally quickly faded as investors realized nothing concrete has been decided. The Dow was recently up about 115 points.
The Treasury Department said in a statement that neither Treasury Secretary Steven Mnuchin nor top trade negotiator Robert Lighthizer have made "any recommendations to anyone" about China tariffs.
"This market is desperate for good news on trade progress," said Art Hogan, chief market strategist at B.Riley FBR. "You get a whiff of it and there's a pop. The problem is, then reality sets in."
US stocks improve after a poor showing at market open.
The Nasdaq recovered early losses, fueled by gains in tech. Netflix (NFLX), which reports earnings after the bell, was up on the day. Amazon (AMZN) and Facebook (FB) also made slight gains.
In December, CBS said they had ample reason to fire Moonves — thus denying him severance.
The company said in Wednesday's government filing that it "does not intend to comment further on this matter during the pendency of the arbitration proceedings."
Every kiss apparently doesn't begin with Kay. And it looks like he didn't go to Jared. Or Zales for that matter. Signet, the retailer that owns all three of these mall-based jewelry chains as well as Piercing Pagoda, reported a 1.3% drop in same-store sales during the holidays and lowered its fourth-quarter outlook.
US stocks retreated at Thursday’s opening bell on renewed trade worries and disappointing earnings.
Morgan Stanley’s stock is sliding after it posted disappointing earnings from the last three months of 2018.
The investment bank reported $1.5 billion in profit from the fourth quarter, which was below analyst expectations. Trading revenue and income from its wealth management unit both fell.
The trading divisions at US banks struggled last quarter as market volatility encouraged some investors to stay on the sidelines. But the problem at most major banks was limited to bond trading. Morgan Stanley had issues trading both equities and bonds.