U.S. markets surged higher at the opening bell on the first day back from the three-day holiday weekend, but were unable to sustain their momentum.
The main catalyst at the opening bell was economic data out of China that temporarily put Wall Street’s mind at ease. China’s fourth-quarter gross domestic product (GDP) came in at 6.8%, down a tick from last quarter and the weakest in seven years, but right in line with expectations.
However, oil prices weakened after a strong start and took stocks along for the ride, sending the S&P 500 and other major indices into the red before a quick late-day rally brought the broader markets fractionally in the black.
Amid the ups and downs of the day, Netflix, Inc. (NASDAQ:NFLX), Viacom, Inc. (NASDAQ:VIAB) and UnitedHealth Group Inc (NYSE:UNH) stuck out for only going up. Here’s why:
Netflix, Inc. (NFLX)
NFLX stock was a big winner today, up more than 3% as investors bet that the streaming video company’s fourth-quarter earnings report, which came after Tuesday’s closing bell, would beat analysts’ expectations.
The company posted earnings of 7 cents per share, down from a dime per share in the year-ago quarter, but more than enough to beat expectations of 2 cents per share. Meanwhile, revenues of $1.82 billion were up from last year’s $1.49 billion, but slightly under the consensus estimate for $1.83 billion.
The news sent NFLX up another 6% in early after-hours trading.
Netflix has beaten Wall Street earnings estimates in nine of the past 11 quarters and seven of the past 11.
Viacom, Inc. (VIAB)
Viacom also surged today amid news of a possible shakeup of the company. Investment management company SpringOwl Asset Management is asking the company to replace 92-year-old Chairman Sumner Redstone and the board of directors.
SpringOwl has lost faith in Redstone, as they detailed his absence from earnings calls and shareholder meetings in a lengthy report today. They are looking for the company to find a replacement as soon as possible. Other demands include cutting of operating costs, focusing more on digital media and considering alternatives to its current assets.
The problem is that Redstone would have to agree to those changes, as 80% of the voting stock is controlled by the Redstone family.
VIAB stock was up nearly 8% this morning before settling back to finish more than 4% higher on the day.
UnitedHealth Group Inc (UNH)
UnitedHealth reported healthy fourth-quarter earnings today, which sent the stock up more than 3% on the day. UNH said it earned $1.40 a share, 3 cents ahead of the Zacks Consensus Estimate. Revenue of $43.6 billion also bested analysts’ forecast for $43.1 billion.
UNH also beat earnings estimates by a penny for the full year, bringing in $6.45 per share. Revenue from health services business Optum was also a strong contributor to the bottom line.
Other positives include an increase in members, and a lower share count thanks to buybacks.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
