Uncertainty slows down US stock exchanges: Netflix falls victim to high expectations

The uncertainty about the further economic development drives investors on the
Wall Street around. The most important indices close inconsistently before the weekend. The most noticeable loser on the US stock exchange is one of the big corona crisis profiteers.

The Dow Jones Industrial eased slightly at the end of a solid week on the stock market. The other major stock market indices, on the other hand, closed moderately on Friday. The focus was on US economic data: The mood of consumers has deteriorated in view of the tense corona situation. The consumer confidence surveyed by the University of Michigan fell from 78.1 points in the previous month to 73.2 points in July. By contrast, analysts had expected a slight increase to an average of 79.0 points.

Of the Dow fell 0.23 percent on Friday to 26,671.95 points. From a weekly perspective, however, there is an increase of 2.29 percent. Driven by hope for a corona vaccine, the stock market barometer rose to 27,071 points in the middle of the week, making up for the slump in mid-June. Afterwards, however, he ran out of strength – also because of concerns about a violent second wave of the viral disease.

With around 77,300 cases reported, the number of new infections has reached a new high. It is feared in the market that the development could slow the recovery of the world's largest economy. On the other hand, according to stockbrokers, the pressure on US President Donald Trump could increase to counteract it with further fiscal policy impulses. In this case, the stock market would probably receive further boost. The broader S&P 500 rose 0.28 percent to 3,224.73 points on Friday. The technology values ​​index Nasdaq 100 advanced 0.18 percent to 10,645.22 points.

Streaming growth is slowing

Was particularly striking with Netflix a loser. According to business figures, the streaming service's papers bottomed out in the Nasdaq 100 by 6.5 percent to around $ 493 after hitting a record high of $ 575 at the start of the week. Netflix is ​​now paying tribute to the rally and falling victim to the immense expectations of investors. Because many experts are not that dissatisfied with the number of subscribers – JPMorgan and Jefferies even increased their course goals. By contrast, Douglas Mitchelson of Credit Suisse canceled his recommendation because he no longer sees any course drivers. The corona crisis has led to an enormous switch in users for streaming offers worldwide, from which Netflix has benefited. But that also means that growth in customer numbers is likely to slow again in the second half of 2020.

In the Dow, the shares of Cisco ahead of the pack with an increase of 2.1 percent. As of Thursday, a skeptical analyst comment from Bank JPMorgan had burdened the network supplier's shares. This time it was bottom of the leading index JPMorgan even with minus 1.9 percent. On Tuesday, however, the banks' reporting season for the largest financial institution in the United States had started well. The share certificates of Blackrock rose by 3.7 percent among the favorites in the S&P 500. The asset manager had exceeded market expectations for profit and sales in the past quarter.

Of the Euro benefited from the broadly weak US dollar, most recently trading at $ 1.1436. The European Central Bank set the reference rate at $ 1.1428 (Thursday: 1.1414). The dollar thus cost 0.8750 (0.8761) euros. In the US bond market, trend-setting ten-year government bonds fell 2/32 points to 100 points and returned 0.623 percent.