U.S. Stocks Close Mostly Lower As Netflix Slumps On Disappointing Earnings

Market Performance - Major averages declined, with the Nasdaq falling 213.67 points (0.9%) to 22,740.40, the Dow down 334.33 points (0.7%) to 46,590.41, and the S&P 500 decreasing 35.95 points (0.5%) to 6,699.40 [2] - The decline in the Nasdaq was influenced by a significant drop in Netflix shares, which fell 10.1% to a five-month closing low [2][3] Company-Specific News - Netflix reported weaker than expected third quarter earnings, impacted by a dispute with Brazilian tax authorities [3] - Texas Instruments shares dropped 5.6% following disappointing fourth quarter guidance [3] - In contrast, Intuitive Surgical shares surged 13.9% after reporting third quarter results that exceeded expectations [3] Sector Performance - Semiconductor stocks faced considerable selling pressure, with the Philadelphia Semiconductor Index declining by 2.4% [7] - Airline stocks also showed weakness, as indicated by a 1.9% loss in the NYSE Arca Airline Index [7] - Retail, housing, and networking stocks experienced notable declines, while energy stocks rose due to a sharp increase in crude oil prices [7] Trade Relations Impact - Wall Street's weakness was exacerbated by renewed uncertainty regarding U.S.-China trade relations, following comments from President Trump about the potential for a meeting with Chinese President Xi Jinping [4][5] - Reports indicated that the Trump administration is considering plans to restrict software exports to China, which could escalate trade tensions [5][6] Global Market Overview - In Asia-Pacific, mixed performances were noted, with Hong Kong's Hang Seng Index down 0.9% and South Korea's Kospi up 1.6% [8] - European markets also ended mixed, with the U.K.'s FTSE 100 Index up 0.9%, while the French CAC 40 Index and German DAX Index fell by 0.6% and 0.7%, respectively [8] Bond Market - Treasuries fluctuated but closed modestly higher, with the yield on the benchmark ten-year note dipping 1.0 basis points to 3.953% [9] Upcoming Earnings - Market reactions to upcoming earnings reports from Tesla and IBM may influence trading on Thursday [10]