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Netflix Stock, Nasdaq Rally Off Session Lows; Amazon Scores New High

Netflix (NFLX) stock and Amazon.com's (AMZN) Prime Day dominated the headlines Tuesday as the Dow Jones, S&P 500 and Nasdaq composite recovered impressively after a soft start.

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Netflix was near session highs but still fell 8% after net U.S. and international subscriber growth fell well short of targets. Netflix stock hit an intraday low of 344, just above its last buy point of 338.92. It cleared the flat-base entry May 23.

Amazon.com notched a new high after falling 1.4% early. Despite some technical glitches, sales at its Prime Day shopping event appear to be quite strong.

The Nasdaq pared a 0.7% intraday loss and was up 0.3%. The S&P 500 also reversed slightly higher after falling 0.3% intraday. The Dow Jones added 0.1% and the Russell 2000 small-cap index picked up 0.4%. Volume on the NYSE and Nasdaq was tracking close to Monday's levels.

Dow component UnitedHealth Group (UNH) paid a visit to its 50-day moving average Tuesday. Shares fell 3% to 248.98 despite an earnings beat and another quarter of double-digit sales growth.

Heavy-volume gainers included Cactus (WHD). Shares rose more than 1% to 33.75. The stock has been volatile after a breakout attempt over 35.29, but the new issue is holding support at the 50-day moving average. The maker of oil and gas equipment recently priced an offering of 10 million shares at 33.25.

Powell On Capitol Hill

Meanwhile, Fed Chairman Jerome Powell kicked off two days of congressional testimony. The Federal Open Market Committee has raised interest rates twice this year. It expects two more rate hikes before the end of the year.

Charles Schwab (SCHW) was an earnings winner, up nearly 4% to 53.01. The online broker gapped up above its 200-day, but its 50-day moving average around 55.50 is a potential resistance level to watch. Group peer Interactive Brokers (IBKR) reports after the close.

Watch for other earnings reports after the close from the likes of CSX (CSX), Mellanox (MLNX) and United Continental (UAL).

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