Midday Fly By: Netflix slumps as co-founder Hastings announces exit

Stocks are climbing and oil prices are falling after Iran announced that the Strait of Hormuz is now “completely open” for commercial traffic for “the remaining period of ceasefire” in Lebanon. In a series of social media posts, President Trump added that while the strait is now “completely open and ready for business and full passage,” the U.S. naval blockade “will remain in full force” until a deal with Iran is “complete.” Trump also stated that a U.S. deal with Iran “is not tied, in any way, to Lebanon.”

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 

1. STOCK NEWS:

• Netflix (NFLX) shares have slumped after the streaming company gave a forecast for the second quarter that underwhelmed Wall Street and co-founder and Chairman Reed Hastings said he will leave the board when his current term ends
• Alcoa (AA) shares slipped after the aluminum company said first quarter earnings were hurt by higher costs and operational disruptions
• Knight-Swift (KNX) traded down after the transportation and logistics services provider reported preliminary Q1 adjusted EPS that missed the average estimate
• Auto safety system supplier Autoliv (ALV) rose after the company reported stronger than expected first-quarter results
• Ford Motor (F) is recalling about 1.4M F-150 pickup trucks in the U.S. following a NHTSA investigation into reports of unexpected downshifts

2. WALL STREET CALLS:

• Clorox (CLX) downgraded to Underweight at JPMorgan
• Mizuho (STM) to Outperform and Texas Instruments (TXN) to Neutral on AI server and industrial demand
• However, Mizuho (NXPI) to Underperform from Outperform on auto headwinds
• BNP (CVX) to Outperform and Exxon Mobil (XOM) to Neutral on lasting higher oil prices
• Exelon (EXC) was downgraded to Neutral or equivalent ratings at Mizuho, Barclays and BMO Capital

3. AROUND THE WEB:

• Apple (AAPL) saw iPhone shipments in China jump 20% in Q1, outperforming peers despite a 4% overall market decline driven by higher chip costs and supply chain disruptions, Reuters says
• Gerresheimer (GRRMF) has rejected a takeover bid from Silgan (SLGN) and there are no longer any discussions between the two companies, Reuters reports
• Control Empresarial de Capitales, Carlos Slim and his family’s investment vehicle, has sold $497M of stock in PBF Energy (PBF), cutting its stake by more than a third, Bloomberg says
• Disney (DIS), which is hosting its first Super Bowl in 20 years next February, has told advertisers it thinks they should pay $10M for a 30-second commercial during the game’s 2027 telecast, Variety reports
• The Nintendo Switch 2 (NTDOY) was the best-selling video game console in Japan last month with 448,494 units sold, VGChartz says

4. MOVERS:

• Critical Metals (CRML) higher in New York after announcing the Government of Greenland has approved the transfer of the remaining 50.5% interest in the Tanbreez Mining Greenland to the company
• Repay Holdings (RPAY) gains after Forager Capital proposed to acquire the company for $4.80 per share
• USA Rare Earth (USAR) increases after appointing Chaitan Kansal as Chief Commercial Officer
• Badger Meter (BMI) falls after reporting Q1 results and providing guidance for FY26
• Ericsson (ERIC) lower in New York after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Autoliv (ALV) reported Q1 results, with EPS and revenue beating consensus
• Regions Financial (RF) reported Q1 results, with CEO John Turner commenting, “Our results reflect the strength of our franchise”
• State Street (STT) reported Q1 results, with EPS and revenue beating consensus
• Sanuwave Health (SNWV) narrowed its guidance for Q1
• Ally Financial (ALLY) reported Q1 results, with CEO Michael Rhodes commenting on “a strong start to the year” and “momentum we’ve established across our core franchises”

INDEXES:

Near midday, the Dow was up 2.21%, or 1,073.46, to 49,652.18, the Nasdaq was up 1.44%, or 346.53, to 24,449.23, and the S&P 500 was up 1.26%, or 88.50, to 7,129.78.