Record Close for S&P 500; Netflix Comes Back to Earth - East Idaho News
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Record Close for S&P 500; Netflix Comes Back to Earth

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GETTY 102113 WallStreetSign?  SQUARESPACE CACHEVERSION=1382479219526iStock/Thinkstock(NEW YORK) — For the fourth straight day the S&P 500, a broader measure of the market than the Dow Jones Industrials, has closed at a new all-time high. Year to date, the S&P is now up 23 percent.
 
The Nasdaq Composite and the Dow also finished Tuesday’s session higher. The Dow ended the day up 75 points, at 15,467.66, and the Nasdaq closed up 9.52 points, at 3,929.57.
 
One stock that took investors on a roller-coaster ride was Netflix. It surged Monday night and early in Tuesday’s session after reporting better-than-expected earnings and off-the-charts subscriber growth. The stock peaked at around $390 a share, up over 9 percent in early trading.

A couple hours into the trading day there was a reversal of fortune. Netflix shares tumbled over 14 percent, with a host of other Internet and tech high-flyers like LinkedIn, Facebook, Pandora and Priceline heading south at the same time.  By the close of trading, Netflix had fallen close to $32 a share to finish the day at $323 a share.
 
Interestingly, one of the real catalysts for the sell-off Tuesday were comments from Netflix CEO Reed Hastings about his own stock. He warned investors about the excessive “euphoria” as shares of the video streaming company have soared this year.  

Despite the wild ride, shares this year are still up 252 percent and over the last 12 months a whopping $375 percent.
 
One more stock of note Tuesday was Apple. Its shares finished the session down slightly, despite trading up 9 percent this month ahead of Tuesday’s iPad announcement. It has become fairly commonplace for Apple’s shares to move higher in the days ahead of new product announcements and then slide a bit in the days to follow.

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