Dow drops, Netflix beats estimates, Nvidia rebounds

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Dow drops,

This is the hidden content, please

• Sign In
• or
• Sign Up

beats estimates, Nvidia rebounds

Traders work on the floor of the New York Stock Exchange during morning trading on Jan. 31, 2024 in New York City.

Michael M. Santiago | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Broad sell-offThe 

This is the hidden content, please

• Sign In
• or
• Sign Up

 

This is the hidden content, please

• Sign In
• or
• Sign Up

as investors trimmed positions in technology stocks and booked profits in other sectors. The 

This is the hidden content, please

• Sign In
• or
• Sign Up

and the

This is the hidden content, please

• Sign In
• or
• Sign Up

also declined, with

This is the hidden content, please

• Sign In
• or
• Sign Up

 and 

This is the hidden content, please

• Sign In
• or
• Sign Up

 among the Big Tech names that fell on Thursday. Even the small cap-focused 

This is the hidden content, please

• Sign In
• or
• Sign Up

, up 3.5% in the last five trading days on hopes of interest rate cuts, lost 1.9%. The yield on the 10-year 

This is the hidden content, please

• Sign In
• or
• Sign Up

 

This is the hidden content, please

• Sign In
• or
• Sign Up

, while 

This is the hidden content, please

• Sign In
• or
• Sign Up

 inched lower.

This is the hidden content, please

• Sign In
• or
• Sign Up

beats

This is the hidden content, please

• Sign In
• or
• Sign Up

‘s

This is the hidden content, please

• Sign In
• or
• Sign Up

as it solidified its dominance in the streaming market. The company saw a 34% growth in ad-supported memberships and a 16.5% increase in global paid memberships to 278 million in the reported quarter. This growth, coupled with a crackdown on password sharing, boosted revenue by 17% to $9.6 billion.

This is the hidden content, please

• Sign In
• or
• Sign Up

raised its full-year revenue growth forecast to 14%-15% from 13% to 15%. Net income rose to $2.15 billion, or $4.88 a share.

Nvidia reboundsNvidia shares rose 3% on Thursday,

This is the hidden content, please

• Sign In
• or
• Sign Up

in the previous session as

This is the hidden content, please

• Sign In
• or
• Sign Up

raised geopolitical concerns. Nvidia’s rise came after

This is the hidden content, please

• Sign In
• or
• Sign Up

said

This is the hidden content, please

• Sign In
• or
• Sign Up

while supply was constrained for high-end AI chips, which TSMC manufactures for Nvidia. The semiconductor sector had its worst day since 2020 on Wednesday, with

This is the hidden content, please

• Sign In
• or
• Sign Up

,

This is the hidden content, please

• Sign In
• or
• Sign Up

,

This is the hidden content, please

• Sign In
• or
• Sign Up

, and

This is the hidden content, please

• Sign In
• or
• Sign Up

also declining. “While there is rising concern over geopolitical tension given the upcoming US presidential election, TSMC mentioned that it would continue its overseas expansion to mitigate the risks,” Citi analyst Laura Chen wrote in a note on Thursday. 

Online ***** record

This is the hidden content, please

• Sign In
• or
• Sign Up

‘s Prime Day generated a record

This is the hidden content, please

• Sign In
• or
• Sign Up

, an 11% increase year on year, according to

This is the hidden content, please

• Sign In
• or
• Sign Up

Analytics. Back-to-school shopping and consumer demand for new electronics drove the surge, contrasting with last year’s inflation-weary shoppers’ focus on household essentials.

This is the hidden content, please

• Sign In
• or
• Sign Up

highlighted the role of its AI shopping assistant, Rufus, in facilitating customer browsing.

Asia markets slide

This is the hidden content, please

• Sign In
• or
• Sign Up

tracked Wall Street losses amid rising trade tensions. Japan’s

This is the hidden content, please

• Sign In
• or
• Sign Up

slipped 0.4% after June inflation came in at 2.8%, unchanged from May. Hong Kong’s

This is the hidden content, please

• Sign In
• or
• Sign Up

dropped over 2% as energy stocks declined, while mainland China’s CSI 300 inched up 0.1%. South Korea’s

This is the hidden content, please

• Sign In
• or
• Sign Up

and the

This is the hidden content, please

• Sign In
• or
• Sign Up

extended losses, with heavyweights

This is the hidden content, please

• Sign In
• or
• Sign Up

and Samsung Electronics falling 3.5% and nearly 3%, respectively. Australia’s

This is the hidden content, please

• Sign In
• or
• Sign Up

dropped 0.81%.

[PRO] Rising trade tensionsTensions between the U.S. and its trading partners are rising as the Biden administration considers restricting chipmaking equipment exports to China and former president Donald Trump proposes tariffs on all imports if re-elected. These stocks will be the

This is the hidden content, please

• Sign In
• or
• Sign Up

, Wall Street says.

The bottom line

What does the semiconductor rout tell us? The 

This is the hidden content, please

• Sign In
• or
• Sign Up

, which tumbled 6.8% on Wednesday amid concerns about tighter export regulations and Trump’s remarks on Taiwan, just managed a modest recovery of 0.5% on Thursday.

“We understand the rotation away from AI/data-center semis towards industrial/auto/consumer, but it’s not supported by fundamentals and is likely short-term positioning driven,” Bank of America analyst Vivek Arya said in a note Wednesday.

Despite the recent sell-off, Arya ******** bullish on the sector, particularly on AI, which he sees as the strongest and most dependable area of capital expenditures. Outside of AI, “global growth ******** murky at best,” he added, pointing to consumer restraints on the PC/smartphone upgrade cycle, sluggish enterprise and telco demand, as well as weak demand in China.

Concerns, however, have been building around artificial intelligence and its ability to turn 

This is the hidden content, please

• Sign In
• or
• Sign Up

 amid the lack of ******* AI end uses. 

This is the hidden content, please

• Sign In
• or
• Sign Up

-backed OpenAI

This is the hidden content, please

• Sign In
• or
• Sign Up

Thursday, a smaller version of its flagship AI model. The $80 billion company is under pressure to maintain market leadership and monetize its technology in the face of growing competition.

Alger CEO Dan Chung told CNBC that the

This is the hidden content, please

• Sign In
• or
• Sign Up

” 

“These are politically sensitive companies for a good reason because they are the most vital part of the semiconductor industry,

This is the hidden content, please

• Sign In
• or
• Sign Up

in particular is unique,” he said on Wednesday. 

“They have already given up quite a bit of revenue because of the restrictions and exports to China. I think the political football will continue around this. We have more trade with than we don’t have with China. We have more trade with our partners around the world, even as we argue about political ramifications… this noise is creating a buying opportunity, or will potentially create one pretty soon.” 

Nvidia’s rebound from heavy losses after

This is the hidden content, please

• Sign In
• or
• Sign Up

said

This is the hidden content, please

• Sign In
• or
• Sign Up

, supports Chung and Arya.

This is the hidden content, please

• Sign In
• or
• Sign Up

, another chip maker seen as a huge beneficiary from AI demand, also rose 2.9%.

However,

This is the hidden content, please

• Sign In
• or
• Sign Up

There could be many more to come. Evercore ISI’s head of technical analysis, Rich Ross, in a note to investors warned of potential short-term weakness in the stock market due to historically weak performance in the coming months. Despite this, Ross maintains his bullish

This is the hidden content, please

• Sign In
• or
• Sign Up

for the S&P 500 with a year-end target of 5,800.

— CNBC’s Michelle Fox, Annie Palmer, Hayden Field, Pia Singh, Alex Harring, Sarah Min, Kif Leswing, Lillian Rizzo, Lim Hui Jie and Weizhen Tan contributed to this report.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Dow #drops #

This is the hidden content, please

• Sign In
• or
• Sign Up

#beats #estimates #Nvidia #rebounds

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up