US Stocks Mixed as Nasdaq Hits Record High, Netflix Shares Dip After Earnings

The Nasdaq rose 0.4% for a fourth straight session, while the S&P 500 gained 0.2% and the Dow slipped 0.1%. Netflix shares dipped 5% despite solid Q2 earnings and a positive outlook for 2025 revenue. Market attention is shifting from tariff concerns to President Trump's health and messaging. The dollar weakened slightly, and the US passed its first major national crypto legislation, the Genius Act.

The Nasdaq rose 0.4% for a fourth consecutive session, while the S&P 500 gained 0.2% and the Dow slipped 0.1% on July 2, 2025. Despite a dip in Netflix shares, which fell 5% despite solid Q2 earnings and a positive outlook for 2025 revenue, market attention has shifted from tariff concerns to President Trump's health and messaging. The dollar weakened slightly, and the U.S. passed its first major national crypto legislation, the Genius Act.

In other news, Smart Powerr Corp. (Nasdaq: CREG) announced a 1-for-10 reverse stock split of its common stock, effective July 18, 2025. The move is aimed at bringing the company into compliance with Nasdaq's minimum bid price requirement. The reverse stock split will reduce the company's outstanding shares from approximately 25.3 million to about 2.53 million, while still trading under the ticker “CREG.” Fractional shares resulting from the split will be rounded up to the nearest full share. The reverse stock split will uniformly affect all shareholders and will also adjust the number of shares and exercise prices for stock options and warrants [1].

Potential positives of the reverse stock split include the potential stabilization of the company's stock listing and investor confidence. The reduction in the number of outstanding shares may enhance the perceived value of the remaining shares, attracting potential investors. Additionally, Smart Powerr Corp. plans to pursue disciplined and targeted expansion strategies into currently unserved market areas, indicating a commitment to growth and innovation in energy efficiency solutions. The company's focus on waste energy recycling and energy efficiency solutions within energy-intensive industries in China positions it as a pioneer in sustainability and energy efficiency, which may resonate well with environmentally conscious investors.

However, the announcement of a reverse stock split indicates ongoing compliance issues with Nasdaq listing requirements, reflecting negatively on the company's stock performance and market standing. The reduction in outstanding shares may also suggest a decrease in the company's market capitalization, potentially impairing investor confidence. Additionally, the reverse stock split could lead to increased share prices, which might deter smaller investors and reduce overall trading volume, impacting liquidity adversely.

Overall, while the reverse stock split aims to address compliance issues and potentially enhance the company's perceived value, it also introduces challenges that could impact investor confidence and market liquidity. Investors should closely monitor Smart Powerr Corp.'s future developments and market performance.

References:
[1] https://www.quiverquant.com/news/Smart+Powerr+Corp.+Announces+1-for-10+Reverse+Stock+Split+to+Comply+with+Nasdaq+Listing+Requirements