By Yasin Ebrahim
Investing.com – Wall Street pared losses on Friday as strong gains in health care and utilities softened the blow from an earnings-induced slump in Netflix.
In a sign that bullish investor sentiment is waning, utilities, often used as a defensive play, were among the biggest gainers, rising nearly 2%.
Healthcare was also among the biggest gainers, led by a jump in Moderna (NASDAQ:MRNA) on reports the European Union is in talks with various drug makers to buy millions of doses of Covid-19 vaccines.
Tech, which is on pace for a weekly loss, bounced off session lows but gains were kept in check by a slump in FAANG component Netflix.
Netflix (NASDAQ:NFLX) fell 6.7% after reporting second-quarter earnings that missed analyst expectations and serving up a gloomy outlook on subscriber growth for the rest of the year.
The streaming giant’s report prompted several analysts on Wall Street to rein in their optimism on the stock.
Credit Suisse (SIX:CSGN) downgraded Netflix to neutral from outperform, citing “a lack of near term catalysts.” The bank also cut its price target on the stock to $525 from $550.
The economic front, meanwhile, offered up further ammo for the bears as data showed consumer sentiment softened, which analyst warned could be a sign that economic growth could slow amid a sharp increase in cases.
The University of Michigan’s index of consumer sentiment fell to 73.2 in early July. “We do not expect to see a material increase in consumer sentiment until it is widely viewed that the virus is under control,” Wells Fargo (NYSE:WFC) said.
The U.S. reported 77,200 cases on Thursday, a daily record, with the death toll above 138,000, according to Johns Hopkins University.
Dow Sidesteps Netflix Wobble as Utilities, Healthcare Step Up
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