HIGH-FLYERS Tesla and Netflix slumped yesterday, weighing on the Nasdaq on a mixed day for global stocks as the dollar rose.

The tech-centred big US index dropped more than 2% as earnings disappointments involving two of the group’s biggest names spread to other giants including Amazon, Apple and Google parent Alphabet.

Analysts have been cautioning that the market could be poised for a pullback after a strong second quarter and start to the third quarter.

“A couple of news items, one on Netflix and one on Tesla prompted some profit-taking today in the tech arena,” said Cresset Capital’s Jack Ablin.

“This is a pretty expensive space that just really got ahead of itself.”

Earlier, European stock markets advanced while Asian equities were pressured by worries over China’s economy.

Wall Street had a mixed day overall, with the Dow still mustering an advance to finish higher for the ninth straight day.

But the S&P 500 joined the Nasdaq in retreating.

Tesla, whose share price has more than doubled this year, fell nearly 10% despite topping analyst estimates for earnings-per-share and revenues. But the electric car maker saw profit margins erode as the result of price cuts.

Similarly, Netflix, which had risen more than 60% on the year, sank 8.4% despite announcing a surprisingly robust addition of six million customers in the wake of its crackdown on password sharing.

But the streaming service missed revenue estimates and faced questions on the effects of a writers and actors strike that has mostly shut down Hollywood.

Meanwhile the dollar rose solidly against the euro and other major currencies, picking up momentum following data showing a decline in US jobless claims.

The US currency has retreated on expectations that the Federal Reserve will soon abandon its policy of relentless interest rate increases.

“Still, economic divergence has helped to slow the dollar’s descent with the US economy flashing steady signs of resilience,” said Convera’s Joe Manimbo.

Key figures around 8.40pm:

New York - Dow: UP 0.5% at 35,225.18 (close)

New York - S&P 500: DOWN 0.7% at 4,534.87 (close)

New York - Nasdaq: DOWN 2.1% at 14,063.31 (close)

London - FTSE 100: UP 0.8% at 7,646.05 (close)

Frankfurt - DAX: UP 0.6% at 16,204.22 (close)

Paris - CAC 40: UP 0.8% at 7,384.91 (close)

EURO STOXX 50: UP 0.3% at 4,373.73 (close)

Tokyo - Nikkei 225: DOWN 1.2% at 32,490.52 (close)

Hong Kong - Hang Seng Index: DOWN 0.1% at 18,928.02 (close)

Shanghai - Composite: DOWN 0.9% at 3,169.52 (close)

Euro/dollar: DOWN at US$1.1113 from US$1.1201 on Wednesday

Pound/dollar: DOWN at US$1.2867 from US$1.2940 

Euro/pound: DOWN at 86.50 pence from 86.56 pence

Dollar/yen: UP at ¥140.05 from ¥139.65

Brent North Sea crude: UP 0.2% at US$79.64 per barrel

West Texas Intermediate: UP 0.4% at US$75.63 per barrel. – AFP, July 21, 2023.