The markets were mixed thanks to tussles in congress over the healthcare debate. At the close the Dow lost 55 points to 21,574 while the NASDAQ gained 29 to 6,344. Both indexes posted higher volume figures as pundits’ debate healthcare, the Trump agenda getting stalled out and how this might affect interest rate hikes and GDP growth rates.
Harley Davidson Motorcycles reported a 5% decline in both sales and net income saying that soft domestic demand had caused the company to lower forward shipment estimates by 6 to 8%. Shares fell on the news even though the net income results beat estimates.
Netflix jumped big on stronger than expected Q2 earnings. The company posted a 32% rise in revenue and saw its bottom line grow by 67%. Analysts jumped on the stock and raised price targets saying the entertainment delivery model was “unmatched” as new subscribers are signing up like chickens to a pile of meal worms.
Bank of America reported better than expected results posting a 9% revenue gain and a 16% jump in net income. Shares were lower however because the gurus, while noting that operating efficiencies were improving, said the outperformance was of “low quality” thanks to mediocre loan growth. Goldman Sachs also reported better than expected results but, like BAC, did not inspire to the upside due to weak bond trading. Several gurus are so upset about the results they called for the ouster Goldman CEO Lloyd Blankfein.