Netflix reported it lost 200,000 global subscribers in the first quarter
Wall street stocks bounced overnight despite disappointing quarterly results from Netflix and gloomy predictions from the IMF. In a half-yearly update, the fund has cut its growth forecast for 2022 by 0.3% to 3.7%, citing developments surrounding Russia-Ukraine crisis. Meanwhile, Netflix reported it lost 200,000 global subscribers in the first quarter. Of note, this is the first time it lost subscribers in more than ten years. The company’s shares were down more than 26% in after-hours trading. Still, the Dow climbed 1.45%, the S&P 500 rose 1.61%, and the Nasdaq increased 2.15%.
Asian equities were mixed-to-lower on Wednesday, with China’s COVID-19 outbreak continuing to unnerve investors these days. Meanwhile, the People’s Bank of China kept its loan prime rates steady earlier today, disappointing market players as they expected the central bank to cut rates in an effort to support the struggling economy. As a result, Shanghai Composite shed 1.35%. Japan’s Nikkei 225, however, added 0.86% after the data showed that exports grew 14.7% year on year and imports jumped 31.2% in March.
In Europe, stocks opened marginally higher today as investors cautiously digested the IMF’s updated global economic forecasts as the fund cut its global growth projections for 2022 and 2023. On the data front, Germany’s March PPI came in at +4.9% versus +2.6% m/m expected, adding to inflation concerns in the region. The pan-European Stoxx 600 index was flat in early deals, with US stock index futures pointing to a lower open in early pre-market trading.
Meanwhile, the USD index came off two-year tops seen around 101.00 earlier in the day. Profit-taking has brought the dollar down to the 100.70 zone that has been capping losses so far. The decline looks more like a technical correction amid overbought conditions. Still, less hawkish comments from Fed officials could have added to a local selling pressure surrounding the US currency. In particular, Bostic and Evans tried to push back against the idea of larger than 50 bps rate increases by the central bank.