Netflix Stock Slides; Intuitive Surgical Pops After Earnings

A tax charge related to its business in Brazil contributed to an earnings miss for a major video-streaming company, and its shares moved lower. Meanwhile, a provider of robotic surgical systems got a boost from better-than-expected quarterly results driven by an increase in procedures performed using its units.

Major U.S. equities indexes fell as investors reacted to the latest earnings reports and awaited results from Tesla (TSLA) after the bell. The S&P 500 lost 0.5%, while the Dow dropped 0.7%. Underperformance in the tech sector pressured the Nasdaq, which fell 0.9%. See here for Investopedia’s full daily market wrap-up.

Shares of Lennox International (LII) slumped 10.2%. The provider of heating, ventilation, air conditioning, and refrigeration solutions fell short of quarterly sales expectations, reflecting declines in its residential segment. The company said a challenging macroeconomic backdrop and a regulatory transition to new refrigerants weighed on its performance.

Netflix (NFLX) reported lower-than-expected net income for the third quarter. The results included a one-time tax expense of more than $600 million related to the video-streaming giant’s business in Brazil. The country’s Supreme Court determined earlier this year that a tax on cross-border payments could apply to a broader range of transactions, and Netflix took the charge given the likelihood that it could be subject to the ruling, CEO Spencer Neumann said. Netflix shares sank 10.1%.

Coinbase Global (COIN) shares fell 5.4%, following the prices of major cryptocurrencies lower. Bitcoin, which traded as high as $113,700 during the regular session yesterday, tumbled below $110,000 overnight and remained under $109,000 throughout Wednesday’s session. Ethereum, the second-largest cryptocurrency, slipped to about $3,800 today.

Shares of Intuitive Surgical (ISRG) surged 13.9%, logging the top performance in the S&P 500, after the maker of robotic surgical devices topped third-quarter sales and adjusted profit estimates. The company highlighted a year-over-year increase in procedures performed using its da Vinci and Ion surgical systems and lifted its full-year growth forecast for da Vinci procedures.  

Avery Dennison (AVY), a maker of adhesive labels, also posted better-than-expected top- and bottom-line results for the third quarter, boosted by improved pricing and cost cuts. The company also announced a partnership with retail giant Walmart (WMT) to expand the use of radio-frequency identification (RFID) labels into new fresh food categories. Shares of Avery Dennison soared 9.5% Wednesday.

Boston Scientific (BSX) shares also got a lift from a strong earnings report, jumping 4% after the medical device maker surpassed third-quarter sales and adjusted profit estimates and raised its full-year guidance. The company benefited from strong sales of its electrophysiology products and the Watchman, its implantable device for patients with atrial fibrillation.