US STOCKS-Nasdaq hits record on Netflix boost; Dow dragged by Goldman

* Goldman Sachs drag banks lower after quarterly results

* Harley-Davidson falls on shipments forecast cut

* Netflix jumps 13.5 pct on robust subscriber growth

* Dow down 0.25 pct, S&P 500 up 0.06 pct, Nasdaq up 0.47 pct
(Updates to close)

By Kimberly Chin

NEW YORK, July 18 (Reuters) – A Netflix rally boosted the
Nasdaq Composite to a record high on Tuesday while Goldman Sachs
Group Inc dragged the Dow lower as earnings take center
stage on Wall Street.

The Nasdaq posted its eighth consecutive session of gains,
the longest streak since its 10-day string in February 2015.

The tech-heavy index was largely boosted by Netflix
. The movie streaming company rose 13.5 percent to
$183.60 a day after it crushed Wall Street forecasts by
reporting 5.2 million new streaming customers in the second
quarter.

As the second-quarter earnings season gears up, investors
will put most of their focus on the performance of individual
companies, analysts said.

“Earnings and guidance will move the market more than news
out of D.C. Goldman is more important to the market today, as is
Netflix, and that will be the case for the next couple of
weeks,” said Art Hogan, chief market strategist at Wunderlich
Securities in New York.

The Dow was dragged lower by a drop in Goldman Sachs, which
fell 2.6 percent to $223.31 after reporting a 40 percent fall in
bond trading revenue and posted the weakest commodities results
in its history as a public company.

Other widely held stocks were active after posting results.

Johnson & Johnson gained 1.7 percent to $134.46
after saying expected sales growth to pick up in the second half
of the year.

Harley-Davidson Inc fell 5.9 percent to $48.95 after
the motorcycle maker cut its forecast for 2017 shipments.

Analysts estimate an 8.5 percent rise in second-quarter
earnings and a 4.7 percent increase in revenue for S&P 500
companies from a year earlier.

This follows a robust first quarter when U.S. companies
posted the fastest rate of growth in earnings since 2011,
according to Thomson Reuters I/B/E/S.

The Dow Jones Industrial Average fell 54.99 points,
or 0.25 percent, to 21,574.73, the S&P 500 gained 1.47
points, or 0.06 percent, to 2,460.61 and the Nasdaq Composite
added 29.87 points, or 0.47 percent, to 6,344.31.

Both the Nasdaq and the S&P 500 set record closing highs.

The CBOE Volatility index ticked up to end at 9.89 on
its fourth consecutive close below 10.

U.S. Senate Republicans failed to muster enough votes to
repeal the Affordable Care Act, commonly known as Obamacare, but
reaction was muted in the stock market. Analysts said the
expectation for business-friendly legislation out of Washington
is all but priced out of equities.

“Investors are looking for an investment that doesn’t need
the economy to do a lot better, and (where) it doesn’t need
Washington,” said Matthew Peterson, chief wealth strategist for
LPL Financial.

Technology was the largest percentage gainer among
the 11 S&P 500 sectors. Healthcare ended up less than
0.1 percent.

Despite the muted reaction from stocks, news of the
healthcare bill’s collapse sent the U.S. dollar to a 10-month
low against a basket of major currencies.

Chipotle Mexican Grill Inc was down 4.3 percent at
$374.98 after it closed a restaurant in Virginia due to a
suspected norovirus outbreak among some diners.

Declining issues outnumbered advancing ones on the NYSE by a
1.10-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favored decliners.

About 5.70 billion shares changed hands in U.S. exchanges,
compared with the 6.48 billion daily average over the last 20
sessions.
(Reporting by Rodrigo Campos and Kimberly Chin; Editing by Nick
Zieminski and Jonathan Oatis)


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