Wall Street Opens a Shade Higher ; Verizon, Alibaba Gain; Dow up 30 Pts By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — U.S. stock markets opened a fraction higher on Tuesday, supported by a number of positive earnings report but held back by disappointment at heavyweight Netflix (NASDAQ:)’s earnings. 

By 9:40 AM ET (1340 GMT), all three main indices were struggling to extend the gains that they made on Tuesday. The was up 29 points, or 0.1%, at 35,486 points. The was up 0.2% and the was up 0.1%. 

To a large degree, this was due to disappointment at guidance from Netflix after the close on Tuesday. The streaming giant said it would have negative free cash flow in the current quarter due to high amortization costs after a heavy investment in original content. That investment had brought in nearly 1 million more new subscribers than expected in the third quarter, but revenue failed to keep pace with subscriber growth, and user numbers in the higher-paying but largely saturated North American market only inched up. There was also little sign of the company making significant money out of its diversification into videogaming in the near term.

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