The markets moved to new record highs again today as earnings season gets underway. Reports from the bank stocks, and tech names sent the Dow 30 higher by 35, the S&P 500 higher by 2, and the Nasdaq 100 up 14 on the day. Next week the focus will be on earnings as investors look for more good news to fuel this market rally.
Netflix (NFLX ) was a big winner today as the firm received two bullish notes from Wall Street analysts. JP Morgan adjusted it's price target to $225 a share and Goldman Sachs raised its target to $235. Goldman's new target is officially the highest target of all analysts covering the stock. In their note the firm cited the fact that many are underestimating the number of new subscribers that Netflix will add in the second half of the year. Analyst Heath Terry said he expects Netflix to add 13.9 million subscribers compared to Wall Street's estimates of 10.8 million. The news sent shares to new highs, up 1.85% on the day, and 60% on the year.
Bank of America (BAC ) was higher by 1.53% today after reporting earnings per share of 48 cents on revenue of $22.08 billion. This was higher than analysts expectations of 45 cents and $21.98 billion which helped fuel today's rally. The only negative in the report was in trading revenue which fell 22% just like JP Morgan, and Citi. Shares were still higher on the day and are now higher by 17% on the year.
Wells Fargo (WFC ) shares were lower by 2.75% on the day as earnings came in mixed. Earnings per share came in as expected, but revenue overall was lower than the streets predictions. Revenue came in at $21.93 billion which was lower than the $22.4 billion that was expected. Part of the reason the bank gave was the $1 billion charge for regulatory investigations. Shares are now lower on the year by almost 3%.