Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.2%) hold modest losses amid mixed sector strength this morning. 

Netflix (NFLX 1129.37, -111.98, -9.02%) was one of the more prominent names to report earnings after the close yesterday, moving sharply lower after delivering a rare EPS miss despite in-line revenue and modestly better-than-expected Q4 guidance.

Revenue rose 17.2% year-over-year to $11.51 billion, marking the strongest top-line growth since 2Q21. Growth was driven by membership additions, pricing changes, and rising ad revenue.

EPS came in below expectations but was impacted by a Brazilian gross tax on outbound payments. Excluding this one-time item, Netflix would have exceeded its Q3 operating income and margin forecast. The company does not expect this tax to materially affect results going forward.

Despite Netflix's loss, the communication services sector (-0.2%) remains near its flat line, with Alphabet (GOOG 254.98, +3.64, +1.45%) helping to mask losses after Bloomberg reported the company is in discussions with Anthropic for a cloud deal worth billions of dollars.