Stocks Plummet as Netflix Slumps, Health Insurers Weigh In

Stocks declined despite strong housing starts and upbeat earnings reports. Netflix's 5% drop weighed on tech stocks, while health insurers were pressured by a lawsuit loss and downgrade. The S&P 500 fell -0.08%, the Dow Jones Industrials Index dropped -0.44%, and the Nasdaq 100 Index declined -0.15%. The 10-year T-note yield fell -3 bp to 4.42%.

Stocks experienced a decline on July 2, 2025, despite strong housing starts and upbeat earnings reports. The S&P 500 Index (SPX) fell by 0.08%, the Dow Jones Industrials Index (DOWI) dropped by 0.44%, and the Nasdaq 100 Index (IUXX) declined by 0.15%. The 10-year Treasury note yield fell by 3 basis points to 4.42% [1].

Netflix (NFLX) led the decline among tech stocks, falling more than 5% after forecasting a full-year operating margin of 29.5%, below the consensus of 29.7% [1]. Health insurers also faced pressure, with Humana (HUM) down more than 2% after losing a lawsuit and Elevance Health (ELV) down more than 5% following a downgrade [1].

The day started with stocks moving higher, driven by the stronger-than-expected housing starts report and generally upbeat earnings reports. The University of Michigan’s US July consumer sentiment index rose to a 5-month high of 61.8, better than expectations [1].

However, the weakness in Netflix and health insurers weighed on the broader market. Additionally, recent trade news, including President Trump's tariff announcements, put downward pressure on stocks [1].

The 10-year Treasury note yield fell due to dovish comments from Fed Governor Christopher Waller, who supports a Fed interest rate cut at the July 29-30 FOMC meeting, and easing inflation expectations [1].

Despite the mixed news, U.S. housing starts surged by 4.6% in June, more than expected, reaching an annual rate of 1.321 million [2]. Building permits also increased by 0.2%, indicating future housing demand [2].

References:
[1] https://www.barchart.com/story/news/33496828/stocks-pressured-by-weakness-in-netflix-and-health-insurers
[2] https://forex.tradingcharts.com/international_financial_news/us_housing_starts_surge_june_07182025_0429.html