Dow Jones Today: Dow Hits Fresh Record; NFLX, CVS in Focus
· InvestopediaStocks were mostly higher on Friday as Netflix (NFLX) shares jumped to a record high and the Dow Jones Industrial Average hit an all-time high of its own after recovering from an early morning slump.
The Nasdaq Composite rose 0.7%, while the S&P 500 advanced 0.4% and the Dow was up 0.1%.
Shares of Netflix jumped to an all-time high after the streaming giant's quarterly results topped estimates. The company reported revenue grew 15% in the quarter and net income increased about 40% to more than $2 billion.
Apple (AAPL) shares also advanced in early trading amid reports that the new iPhone 16 is selling better in China, one of Apple's key markets, than its predecessor model.
Shares of CVS Health (CVS) plummeted after the pharmacy and insurance company announced the replacement of Chief Executive Officer Karen Lynch with David Joyner, a CVS veteran who most recently ran Caremark, its pharmacy benefit manager.
The economic data calendar was light on Friday. The number of new housing construction permits issued in September came in slightly below expectations, while builders broke ground on about as many units as economists expected.
Treasury yields fell slightly following the release of Friday's housing data. The 10-year Treasury yield, which climbed above 4.1% very early Friday morning, fell to 4.08%.
Gold futures continued to advance, climbing to a record high of more than $2,730 an ounce. Silver also extended its rally, rising above $33. Bitcoin climbed to a three-month high of nearly $69,000.
Intel Stock Rises on Report That It Might Sell a Stake in Its Altera Business
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Intel (INTC) shares rose Friday, lifted by indications that it is looking for a big outside investment in its Altera programmable chipmaking unit.
CNBC late Thursday reported that the company is looking to sell a minority stake in Altera that values the business about $17 billion. Intel purchased Altera in 2015 for $16.7 billion, launching it as a standalone company in February, with the intention of spinning it off in an initial public offering (IPO).
CNBC noted that the company has reached out to several private equity and strategic investors this week about Altera. It added that Intel even discussed the possibility those investors could take a majority stake in the business.
Intel has been taking steps to try to shore up its finances, including exploring sales of some of its various divisions, although none has come to fruition. The stock, recently up about 1%, has lost more than half of its value this year.
Intel declined to comment when contacted by Investopedia.
Strong Surgical Robot Sales Send Intuitive Surgical Stock to Record High
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Shares of Intuitive Surgical (ISRG) hit an all-time high Friday, a day after the medical device maker posted better-than-expected results on more use of its da Vinci minimally invasive surgical devices.
The company reported third-quarter adjusted earnings per share (EPS) of $1.84, with revenue advancing 17% year-over-year to $2.04 billion. Both exceeded consensus estimates of analysts polled by Visible Alpha.
The number of da Vinci procedures worldwide increased 18%, helping to drive instruments and accessories sales to $1.26 billion. Intuitive Surgical installed 379 da Vinci units in the quarter, 67 more than the same period a year ago, with 110 of those its new da Vinci 5.
Intuitive Surgical shares surged more than 8% to $515 after touching a record $517.61 soon after markets opened Friday. They are up more than 50% year-to-date.
Apple Shares Rise on Reports of Improved Chinese iPhone Sales
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Apple (AAPL) stock was trading near a record high on Friday amid reports that the iPhone 16 has outsold its predecessor in China by 20% in the three weeks since its release.
What's more, sales of the more expensive Pro and Pro Max models are up 44% this cycle, per Counterpoint Research data cited by Bloomberg.
The improved performance in China is due in part to production issues that plagued the iPhone 15 rollout a year ago and likely impacted early sales, Counterpoint analyst Ivan Lam noted, according to the report. Additionally, the iPhone 15 faced competition from Chinese rival Huawei's Mate 60 device.
There had been some concern among analysts that the iPhone 16, which Apple has heralded as the first built around Apple Intelligence, would struggle in China due to the lack of a partner in the country to power its artificial intelligence features, Bloomberg reported. Now, Wedbush analysts believe Apple could sell more than 240 million iPhones in fiscal 2025, with 100 million Chinese iPhones in the window of an upgrade next year.
Apple shares were up more than 1% at $235 around midday Friday, just shy of their all-time high reached Tuesday when the company unveiled its new iPad mini.
CVS Stock Plummets Amid CEO Shake-up, Grim Outlook
3 hr 15 min ago
CVS Health (CVS) stock tumbled about 8% Friday morning after the pharmacy and healthcare giant announced the replacement of Chief Executive Officer (CEO) Karen Lynch with David Joyner, a longtime company veteran who most recently ran Caremark, its pharmacy benefit manager (PBM).
Joyner is taking the top job effective immediately, CVS said, as the company has weathered a difficult year of sales at its namesake pharmacies and problems with its bets on Medicare coverage that have led it to lower its full-year outlook several times already.
In addition to the CEO swap, CVS also provided preliminary guidance for third-quarter profit, projecting earnings per share (EPS) between 3 cents and 8 cents, and adjusted EPS of $1.05 to $1.10. Analysts are expecting EPS of $1.27, and adjusted EPS of $1.69, according to consensus estimates compiled by Visible Alpha.
With Friday's losses, CVS shares have shed about 26% of their value since the start of the year.
Netflix Stock Surges to All-Time High on Strong Earnings, Outlook
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Netflix (NFLX) reported third-quarter results that topped analysts' estimates on the top and bottom lines, sending its shares soaring to a record high on Friday morning.
The streaming giant posted third-quarter revenue of $9.83 billion, up 15% from a year ago and above the analyst consensus from Visible Alpha. Net income came in at $2.36 billion or $5.40 per share, compared to $1.68 billion or $3.73 per share a year earlier, also beating projections. Total active subscribers climbed 14% to 282.72 million, just above Street expectations though the pace of growth slowed from the prior two quarters.
The company said it expects full-year revenue to grow 15% year-over-year, at the higher end of its previously announced range.
Shares of Netflix, which were up over 41% for the year through Thursday's close, rose more than 9% in early trading Friday.
Stock Futures Mixed as Dow Retreats From Record High
5 hr 13 min ago
Futures contracts connected to the Dow Jones Industrial Average were off about 0.2% in premarket trading on Friday.
S&P 500 futures were up 0.2%.
Nasdaq 100 futures got a boost from surging Netflix stock, rising about 0.6% Friday morning.