Dow Jones Today: Stocks Fall, Treasury Yields Rise as Investors React to U.S. Credit Ratin

May 19, 2025

JPMorgan Downgrades Netflix Stock to Neutral44 minutes ago JPMorgan downgraded Netflix (NFLX) shares to “neutral” from “overweight” Monday, citing a sharp run-up in the streaming giant’s shares.
However, analysts Doug Anmuth and Bryan M. Smilek also raised their price target on Netflix shares to $1,220 from $1,150, while noting that the stock was “less compelling” following recent gains.
“To be clear, there’s no change to our long-term bullish view on NFLX’s streaming leadership position & the company’s potential to effectively become global TV over time,” they wrote. “However, more near-term, following significant stock price appreciation & outperformance, we believe the risk/reward in NFLX shares is becoming more balanced.”
Netflix shares, which hit a record high last week, were down 0.5% at $1,185 in recent trading. The stock has gained 33% since the start of 2025.
The analysts said that Netflix shares currently trade at 39 times forecast 2026 earnings per share (on a GAAP basis) and may have already priced in the upside to its 2025 outlook.
They also noted that investors may rotate their holdings into other stocks that had been under pressure if worries about the economy and tariffs ease. They wrote, too, that the “summer months are seasonally slower” for Netflix and that “2Q is historically a tricky quarter” for the company due to that seasonality.
–Nisha Gopalan

Walmart Slips as Trump Says Company Should ‘Eat Tariffs’1 hr 47 min ago Walmart (WMT) shares slumped in early trading Monday after President Donald Trump said the retailer should absorb the cost of tariffs rather than pass it on to customers by raising prices.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump said in a Saturday message on Truth Social. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Trump’s post came in response to Walmart CEO Doug McMillon warning that profits could fall this year depending on the direction of trade policy.
“Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said during the company’s earnings call Thursday, a transcript of which was made available by AlphaSense.
McMillon credited President Trump and Treasury Secretary Scott Bessent for “progress” on lowering tariffs after the U.S. and China agreed to roll back import taxes for a period of 90 days. “We will do our best to keep our prices as low as possible,” the CEO added.

Walmart shares are up nearly 8% so far this year, while the benchmark S&P 500 index has added 1%.
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Walmart shares were down about 1% in recent trading. The stock is up about 8% since the start of the year, handily outpacing the performance of the S&P 500 over that period.

–Andrew Kessel

Watch These CoreWeave Levels After Last Week’s Huge Rally2 hr 31 min ago CoreWeave (CRWV) shares soared last week after the AI cloud provider posted a surge in quarterly revenue and disclosed that Nvidia (NVDA) has a higher stake in the company than investors had anticipated. The stock is moving higher again this morning.
CoreWeave, which went public in late March, reported Wednesday that first-quarter revenue grew over 400% year-over-year and said via a regulatory filing on Thursday that major partner Nvidia holds a 7% stake in the company, up from its pre-initial public offering holdings of roughly 5%. The company also said last week that it had agreed to a four-year deal with ChatGPT maker OpenAI worth up to $4 billion, adding to a nearly $12 billion commitment announced in March.
Through the close of trading Friday, CoreWeave shares had more than doubled from their $40 IPO price, boosted by last week’s news and investor appetite for up-and-coming generative AI plays that are scaling to meet the technology’s widespread demand. The stock was up about 1% at around $81 this morning, after gaining 56% last week.
Source: TradingView.com.

CoreWeave shares forged a cup and handle pattern on the chart between late April and early May before breaking out above the formation’s top trendline last week.
Importantly, the move higher has occurred on above-average trading volume, indicating conviction from larger market participants behind the buying. Moreover, the relative strength index confirms bullish price momentum with an elevated reading, though the indicator fell below the overbought threshold on Friday, suggesting minor profit-taking ahead of the weekend.
The measuring principle projects an upside target in the shares of $96.90, about 20% above Friday’s closing price. Investors should watch key support levels on CoreWeave’s chart around $73 and $57.
Read the full technical analysis piece here.
–Timothy Smith

S&P 500, Dow in Positive Territory for 20253 hours ago While stocks are set to open lower on Monday, the major U.S. indexes have have posted big gains in three of the past four weeks as concerns about tariffs and the economy have subsided, at least temporarily.
Last week, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each posted their biggest weekly gains since the week of April 7. The Dow added 3.4% last week, while the S&P 500 and tech-heavy Nasdaq jumped 5.3% and 7.2%, respectively.
With their recent gains, the S&P 500 and Dow nudged back into positive territory for 2025, while the Nasdaq remains down slightly

The S&P 500 is up 1.3% since the start of the year, while the Dow has tacked on 0.3%. The Nasdaq is down just 0.5% since the start of 2025.
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