ROUNDUP/Aktien New York Conclusion: Get out of stocks – Netflix shocks investors 01/21/22

NEW YORK (dpa-AFX) – A pitch-black stock market week has ended with renewed bitter losses for the US stock markets. The pressure emanating from the expected interest rate hikes, especially on tech stocks, was intensified on Friday by bad news from the streaming provider Netflix. The tech-heavy Nasdaq 100 fell another 2.75 percent to 14,438.40 points, its lowest level since early October. The index has now lost almost 14 percent from the record high in November.

For the Nasdaq 100, it was the week with the heaviest losses since March 2020. But the leading index Dow also fell significantly on Friday with minus 1.30 percent to 34,265.37 points. The weekly loss adds up to 4.6 percent. The market-wide S&P 500 fell 1.89 percent to 4397.94 points on Friday and fell to its lowest level since mid-October.

After losses in early trading, all three major indices had even turned positive again in the meantime. However, investors quickly used this recovery to sell shares again, which sent the stock market barometers plummeting again. Given the stock losses, investors fled to US government bonds as a safe alternative.

A surprisingly weak forecast by Netflix for user numbers caused great disappointment. This sent Netflix shares to their lowest level since April 2020. With a slump of almost 22 percent, the papers were by far the biggest losers in the NASDAQ 100.

For the current quarter, the company expects only 2.5 million new customers. The forecast for the new subscribers is not even half as high as expected, said Mark Mahaney from the analysis company Evercore ISI. For comparison: In the fourth quarter of 2021, the number of subscribers worldwide had increased by 8.3 million. In addition, the strong dollar weighs on the company’s revenues in markets outside the United States.

The Netflix shock is deep and grist for those who think tech stocks are overvalued. Because of concerns about inflation, the industry papers have been sold for weeks. “Rising interest rates and then even lower growth expectations,” commented market observer Jochen Stanzl from broker CMC Markets. In his view, Netflix “could be symptomatic of what lies ahead for the stock market in the coming weeks and months.”

Netflix sent shock waves, especially in the streaming industry, with the disappointing outlook on the current number of customers. The price losses of other providers such as Walt Disney, Amazon, ViacomCBS and FuboTV ranged from six to more than nine percent.

Peloton shares, which collapsed nearly 24 percent the day before, recovered almost 12 percent. The boss John Foley wants to put the brakes on costs at the ailing manufacturer of fitness equipment, which caused a recovery. A media report about production cuts had sent the papers into the basement the day before.

The shares of vaccine manufacturers were also under pressure again. The analysis house Airfinity had lowered the sales expectations for the corona vaccines because of the Omicron variant, which is characterized by a milder course of infection. The price losses for CureVac, Moderna, Biontech (BioNTech (ADRs)) and Novavax ranged from 4.5 to more than 14 percent.

The euro recovered from the previous day’s losses against the US dollar and cost $1.1341 in the evening. The European Central Bank had previously set the reference rate at $1.1348.

On the US bond market, the futures contract on ten-year Treasuries (T-Note Future) rose by 0.46 percent to 128.30 points. The yield on ten-year paper fell accordingly to 1.75 percent. On Wednesday, at 1.90 percent, it had reached its highest level in more than two years./bek/he

— By Benjamin Krieger, dpa-AFX —

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