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Jan 23, 3:06 PM EST

Tech and consumer-focused companies rise; Netflix leaps


AP Photo
AP Photo/Seth Wenig

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NEW YORK (AP) -- U.S. stocks are rising Tuesday with technology and consumer-focused companies leading the way. Netflix is surging after saying it gained more than 8 million subscribers at the end of 2017. Household goods makers including Johnson & Johnson and Procter & Gamble are sinking following disappointing quarterly reports. Bond yields are down after rising to three-year highs in the last few days. That's helping high-dividend companies like utilities.

KEEPING SCORE: The Standard & Poor's 500 index added 6 points, or 0.2 percent, to 2,839 as of 3 p.m. Eastern time. The Dow Jones industrial average fell 11 points, or 0.1 percent, to 26,202. The 30-stock index was pulled lower by the losses from Johnson & Johnson and Procter & Gamble, as well as declines in Goldman Sachs and Boeing. The Nasdaq composite jumped 48 points, or 0.7 percent, to 7,456. The Russell 2000 index of smaller-company stocks added 4 points, or 0.3 percent, to 1,609.

EVERYBODY'S WATCHING: Netflix said it picked up 8.3 million subscribers in the fourth quarter, a much stronger result than the company and analysts had expected. That came even though Netflix raised the price of its most popular plan in the U.S. The streaming video company's stock soared $23.16, or 10.2 percent, to $250.75.

Big technology companies also rallied. Apple gained $1.05 to $178.05 and Facebook rose $2.66, or 1.4 percent, to $188.03. Online retailer Amazon climbed $28.09, or 2.1 percent, to $1,355.40.

TARIFFS: Solar power companies spiked in early trading after President Donald Trump approved tariffs on imported solar-energy components in a step intended to help U.S. manufacturers. The tariffs start at 30 percent and they're aimed at cheaper imports places like South Korea and China. The latter country called the measures an abuse of trade remedies.

Raymond James analyst Pavel Molchanov said investors sent the stocks higher because they were relieved the administration didn't implement a larger tariff that might have hurt their businesses more severely. He said the extra costs will stop some projects from being built, but added that solar power capacity in the U.S. should keep growing at a rapid pace over the next few years.

First Solar rose as much as 8.6 percent before turning lower and falling 18 cents to $68.78. SunPower gained 6.8 percent early on, but later fell 59 cents, or 6.8 percent, to $8.13. JinkoSolar Holdings sank $1.60, or 6.8 percent, to $21.77 and Canadian Solar declined 21 cents, or 1.3 percent, to $15.56.

The administration also placed a tariff of 50 percent on large washing machines and some components. Whirlpool climbed $6.03, or 3.6 percent, to $172.68.

CONSUMER GOODS: Johnson & Johnson dropped after the health care giant disclosed sharply higher spending on production, marketing, administration and research, offsetting a big jump in sales. A federal appeals court also ruled against Johnson & Johnson, saying a patent on its rheumatoid arthritis drug Remicade isn't valid. Remicade is its biggest-selling drug. Its stock shed $6.11, or 4.1 percent, to $142.03.

Tide detergent maker Procter & Gamble lost $3.25, or 3.5 percent, to $88.65. The company reported a bigger profit and better sales than Wall Street expected, but analysts said its profit margins were weak.

Rival Kimberly-Clark moved higher after it said it will cut 5,000 to 5,500 jobs, or 12 percent to 13 percent of its staff, close or sell some low-margin businesses and close or sell about 10 manufacturing facilities as it tries to cut costs. Its stock added 83 cents to $117. 74.

BONDS: Bond prices turned higher. The yield on the 10-year Treasury note fell to 2.62 percent from 2.66 percent. For the last few days, the 10-year yield has been at its highest level since September 2014.

The increase in bond prices came after the Bank of Japan did not cut back its monetary stimulus programs. While growth has ticked higher, the central bank will continue making massive asset purchases and will keep using negative interest rates to spur inflation. Japan's benchmark Nikkei 225 index jumped 1.3 percent and South Korea's Kospi climbed 1.4 percent. Hong Kong's Hang Seng rose 1.7 percent.

ENERGY: Benchmark U.S. crude rose 90 cents, or 1.4 percent, to $64.47 a barrel in New York. Brent crude, used to price international oils, added 93 cents, or 1.3 percent, to $69.96 a barrel in London.

Wholesale gasoline rose 3 cents to $1.91 a gallon. Heating oil added 3 cents to $2.09 a gallon. Natural gas jumped 22 cents, or 6.8 percent, to $3.44 per 1,000 cubic feet.

METALS: Gold rose $4.80 to $1,336.70 an ounce. Silver lost 8 cents to $16.91 an ounce. Copper fell 9 cents to $3.11 a pound.

CURRENCIES: The dollar slid to 110.32 yen from 110.99 yen. The euro edged up to $1.2288 from $1.2258.

GLOBAL GROWTH: The International Monetary Fund estimated that the world economy expanded at a 3.7 percent annual pace last year, the fastest since 2011, and said it believes growth will accelerate to 3.9 percent in 2018-19. The IMF noted surprisingly strong growth in Europe and Asia and predicted that U.S. tax cuts will give the American economy a short-term boost.

Germany's DAX climbed 0.7 percent and the British FTSE 100 rose 0.2 percent. France's CAC 40 fell 0.1 percent.

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jayt

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