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Stocks traded higher Wednesday with the Nasdaq shaking off a tumble in Netflix  (NFLX) – Get Report following subscriber growth at the streaming giant that fell short of expectations.

Stock Market Action Wednesday: Cramer Reacts to Netflix Report

The Dow Jones Industrial Average rose 174 points, or 0.52%, to 33,995, the S&P 500 rose 0.42% and the Nasdaq was up 0.35%.

The S&P 500 rose for the first time in three sessions. Equities have been pressured by rising coronavirus cases across the globe, particularly in Asia and South America. The spike in the virus has renewed concerns about fresh lockdowns and what impact they may have on the economic recovery.

Stocks in Tokyo declined more than 2% on Wednesday as a resurgence of coronavirus cases has led to restrictions on travel and dining.

The yield on the benchmark 10-year Treasury bond edged slightly higher to 1.57% Wednesday as investors adopted a cautious stance on risk as infections surge more than 15 months into the deadly pandemic.

Corrective Action Is Spreading

Netflix dropped 7.79% Wednesday after the streaming giant added fewer subscribers in the first quarter than Wall Street expected.

Netflix said it added 3.98 million subscribers in the first quarter, below forecasts of 6.34 million and internal company estimates of 6 million. The first quarter a year ago was the strongest in company history when Netflix added 15.8 million new customers as people were forced by the pandemic to stay at home and turned to the TV for entertainment.

For the second quarter, Netflix said it expects 1 million new customers, far below the 4.2 million projected by analysts.

Verizon Communications  (VZ) – Get Report posted stronger-than-expected first-quarter earnings and reiterated its full-year profit forecast but said it lost 178,000 monthly wireless subscribers to newer offerings from rivals such as AT&T  (T) – Get Report and T-Mobile  (TMUS) – Get Report.