Dow edges to new record; weak Netflix hits Nasdaq

NEW YORK (AFP) - The Dow finished at another record Tuesday (July 19), but disappointing earnings from Netflix weighed on the tech-rich Nasdaq.

The Dow Jones Industrial Average advanced 0.1 per cent to 18,559.01, to set a record for the sixth straight day.

The broad-based S&P 500 lost 0.1 per cent at 2,163.78, while the Nasdaq Composite Index shed 0.4 per cent to 5,036.37.

Netflix slumped 13.1 per cent after reporting disappointing subscriber growth in the second quarter.

Still, analysts said most earnings have bested expectations.

“We’re just getting started with the second-quarter earnings season, but the overall tone for the most part is pretty constructive,” said Michael James of Wedbush Securities.

Philip Morris lost 3 per cent as the company’s quarterly earnings were hit by lower sales of cigarettes and tighter margins in part due to weaker currencies in its key international markets.

Johnson & Johnson rose 1.7 per cent after reporting second-quarter sales climbed 3.9 per cent to US$18.5 billion and lifting its full-year profit forecast.

Goldman Sachs dipped 1.2 per cent after reporting a 12.5 per cent drop in second-quarter sales to US$7.9 billion. Earnings easily topped analyst estimates due to lower expenses.

Health insurers fell on reports the US Justice Department is preparing suits to blocks Anthem’s takeover of Cigna and Aetna’s deal to acquire Humana on antitrust grounds. All four stocks lost more than two percent.

A Justice Department spokesman declined comment.