Nasdaq boosted to record close by Netflix; Dow ends down

The Nasdaq surged to a fresh record close Tuesday following strong Netflix earnings, which offset worries about the prospects for President Donald Trump's agenda and earnings disappointments from other companies.

The tech-rich Nasdaq Composite Index jumped 0.5 percent to 6,344.31, its first record since June 8.

The S&P 500 narrowly edged to a record of its own at 2,460.61, up 0.1 percent. But the Dow Jones Industrial Average dropped 0.3 percent to 21,574.73.

Netflix soared 13.5 percent after reporting a better-than-expected jump of 5.2 million subscribers in the second quarter to take the total to more than 100 million worldwide.

The strong results from the video streaming company helped spark a rally in several other prominent tech names ahead of earnings reports in the coming weeks. Amazon gained 1.4 percent, Facebook 2.0 percent, Google parent Alphabet 1.3 percent and Tesla Motors 2.7 percent.

"As long as corporate earnings continue to produce solid bottom and top line growth, coupled with positive guidance, the markets can continue to grind higher," said Quincy Krosby, chief market strategist at Prudential Financial.

But worries about the Trump agenda were back at the forefront after Senate Republicans abandoned an effort to repeal Obamacare in response to opposition with the party.

Trump lashed out at congressional Democrats over the setback and vowed to press ahead with tax cuts. But analysts said the prospect for tax cuts, Wall Street's biggest priority, also looked uncertain.

In other earnings news, Goldman Sachs slumped 2.6 percent as it reported flat second-quarter earnings of $1.6 billion as revenues in the closely-watched fixed income, currency and commodities trading division sank 40 percent to $1.2 billion.

Iconic American motorcycle company Harley-Davidson was another big loser, falling 5.9 percent after reporting a 5.7 percent decline in worldwide sales for the first half of 2017 due in part to weak sales in the US market.

In non-earnings news, Chipotle Mexican Grill shed 4.3 percent after it shut a restaurant in Virginia following an apparent norovirus outbreak. Chipotle, which has faced scrutiny of its food-handling practices, was expected to reopen the Virginia location later Tuesday, according to news reports.

Source: AFP