Stocks on Wednesday rose, extending a rebound on Wall Street, as investors focused on earnings and looked past the economic impact of rising coronavirus infections worldwide.
Earlier this week bond yields dropped below 1.2%. Traders pared bets on any near-term moves on interest rates from the Federal Reserve amid increasing concern that delta-variant infections will slow the global economic recovery.
Pay Attention to Broad Company Earnings
“We have a market that’s very algorithmic,” Cramer said from the floor of the New York Stock Exchange on Wednesday.
Cramer urged investors to pay attention to broad company earnings: “If you focus on Netflix, you’re missing the bigger picture of corporate America doing very well.”
Netflix Earnings Left Something to Be Desired
Netflix’s earnings were disappointing and the stock fell. Jim Cramer says the company’s earnings call didn’t make Netflix seem like the growth stock it has been in the past.
“It was not the conversation you get on a growth stock. … Competition is starting to catch up with them. … We’ve got to be a little more circumspect about Netflix as being a classic growth stock,” Cramer said Wednesday.
Netflix reported earnings of $2.97 per share on revenue of $7.34 billion. Analysts were expecting the company to report earnings of $3.18 per share on revenue of $7.32 billion.
Netflix said it added 1.5 million paid memberships, also ahead of estimates of 1.1 million adds.