The U.S. stock market advanced in morning trading Tuesday as oil prices fell on concerns of a potential rise in output.
Shares of Netflix (NFLX, Financial) fell on Tuesday after the company posted second-quarter earnings on Monday afternoon. The company recorded earnings per share of 85 cents on revenue of $3.91 billion, representing 40.1% year-over-year growth. The company managed to beat earnings estimates by 6 cents, but fell $30 million short of revenue expectations.
It reported 670,000 domestic streaming additions, lower than the 1.21 million expected. International streaming additions were up by 4.47 million, but also fell short of the 5.06 million expected by analysts.
Total streamings adds were 5.15 million, lower than the consensus of 6.27 million. Total memberships were 130.14 million.
Netflix attributed its revenue growth to an increase in average paid memberships and ASP. The operating margin inched up 720 basis points to 11.8%, and operating income growth was 262%.
Moreover, free cash flow was $559 million, down from $608 million in the year-ago quarter. The company expects free cash flow of -$3 billion to -$4 billion for the full-year 2018.
Gainers
- Advanced Micro Devices Inc. (AMD, Financial)
- Micron Technology Inc. (MU, Financial)
- Twitter Inc. (TWTR, Financial)
Losers
- DISH Network Corp. (DISH, Financial)
- General Electric Co. (GE, Financial)
- AT&T Inc. (T, Financial)
- Iron Mountain Inc. (IRM, Financial)
- Goodyear Tire & Rubber Co. (GT, Financial)
- Anadarko Petroleum Corp. (APC, Financial)
Global markets
The main European stock markets traded in positive territory. The U.K.'s FTSE 100 advanced 0.34%, France's CAC 40 rose 0.24%, Germany's Dax swelled 0.80% and Spain's Ibex 35 gained 0.03%.Â
In Asia, markets closed mixed. Japan's Nikkei 225 rose 0.44% and India’s BSE Sensex jumped 0.54%, while Hong Kong's Hang Seng lost 1.25% and China's Shanghai Composite fell 0.57%.
Disclosure: The author holds no positions in any stocks mentioned.
