Investing.com--US stocks edged higher Wednesday, boosted by Netflix's strong results and as investors assessed President Donald Trump’s trade policies.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average gained 55 points, or 0.1%, the S&P 500 index climbed 29 points, or 0.5%, and the NASDAQ Composite rose 195 points, or 1%.
Equities have been buoyed by Trump's move to avoid slapping harsh day-one import tariffs on friends and foes alike, although he told reporters he was considering placing levies on Mexico and Canada as soon as February 1. Tariffs on the European Union and a punitive duty on China were also being discussed, Trump said.
Netflix soars on strong Q4 results
The positive sentiment continued Wednesday, helped by Netflix (NASDAQ:NFLX) shares surging more than 12% after the streaming giant reported a record-breaking 19 million new subscriber additions in the fourth quarter of 2024, far surpassing Wall Street’s expectations.
The surge in subscriptions was driven by a series of blockbuster content releases, including widely acclaimed new seasons and original films, as well as the rollout of regionally tailored programming that resonated with diverse global audiences.
Quarterly revenue rose to $9.5 billion, up 8% year-over-year, while net income came in at $915 million, reflecting a 12% growth.
Netflix also announced plans to raise prices for most subscription tiers in the US, Canada, Portugal, and Argentina, citing increased investments in programming.
Enthusiasm over Stargate
In other news, President Trump unveiled a $500 billion joint venture, named Stargate, involving OpenAI, Oracle (NYSE:ORCL), SoftBank (TYO:9984), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and other tech leaders.
The collaboration aims to construct extensive AI data centers and electricity generation facilities in Texas over the next four years, significantly bolstering the nation's AI capabilities.
In corporate news, Procter & Gamble (NYSE:PG) stock rose 3.4% after the consumer goods giant reported net sales in its fiscal second quarter that topped analysts' estimates, fueled in large part by strong demand in its key US market.
Travelers Companies (NYSE:TRV) stock rose 5.6% after the insurer beat estimates for fourth-quarter profit, as strength in its underwriting business cushioned a blow from elevated catastrophe losses.
United Airlines (NASDAQ:UAL) stock gained more than 3.4% after the carrier issued better than expected fourth-quarter results, painting a upbeat outlook.
Additionally, Johnson & Johnson (NYSE:JNJ) stock fell 3.5%, weighed by a hefty dip in sales of its blockbuster psoriasis treatment Stelara, even as the pharmaceutical firm posted better-than-expected fourth-quarter adjusted earnings and sales.
Crude steadies
Oil prices steadied Wednesday, after hefty losses on the back of President Trump’s declaration of a national emergency to ramp up energy production.
By 09:35 ET, the US crude futures (WTI) dropped 0.2% to $75.70 per barrel, while the Brent contract fell 0.2% to $79.17 a barrel.
The benchmarks retreated on Tuesday after Trump laid out his plan to maximize oil and gas production, including by declaring a national energy emergency to help the rolling back environmental protections, and withdrawing the US from the Paris climate pact.
(Ayushman Ojha contributed to this article.)