Dow rises 200 points, but Nasdaq falls after big Netflix disappointment

The Dow Jones Industrial Average rose Wednesday as trader pored through the latest quarterly reports and weighed recent moves in interest rates.

The Dow Jones Industrial Average was up 249 points, or 0.7%, while the S&P 500 rose 0.2%. The Nasdaq Composite advanced just 0.03%.

The moves came as Netflix fell more than 30% after reporting a loss of 200,000 subscribers in the first quarter. The news led shares of streaming companies Disney, Roku, Warner Bros. Discovery and Paramount to fall, as investors and could further worry investors about buying technology stocks ahead of earnings. A slew of analysts also slashed their ratings on Netflix following its first-quarter results.

Meanwhile, IBM rose more than 5% following a beat on earnings and revenue, which helped lift the Dow. Procter & Gamble, another Dow component, reported better-than-expected results and hiked its full-year revenue guidance.

Tesla and United Airlines are slated to report after the bell.

Beyond company earnings, investors were also keeping a close eye on the 10-year U.S. Treasury yield, which retreated Wednesday after touching 2.94%, its highest level since late 2018, on Tuesday.

"There seems to be some fatigue around rate hike and inflation discussion," said Sylvia Jablonski, CEO nad chief investment officer at Defiance ETFs. "The market has likely priced in the future of rate hikes, inflation is likely nearing a peak and I think there is some positive sentiment around earnings season. The consumer remains strong, spending is up regardless of sentiment, $2 trillion remains on the sidelines in savings, and corporations continue to show strength in pricing power and robust balance sheet."

All the major averages saw strong gains on Tuesday, posting their best day since March 16. The Nasdaq Composite bounced back 2.15%, while the Dow Jones Industrial Average rose 499.51 points, or 1.45% and the S&P 500 gained 1.61%.

"Though growth may slow, this year could still be poised for a mid-digit S&P return," Jablonski added. "Investors may be taking stock of that, and deploying cash versus locking in losses on cash due to inflation. If P/E levels continue to look reasonable at these levels, and earnings come through, this could be the catalyst for a positive second half pivot."