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Netflix's stock was down over 6% on Tuesday, immediately after it delivered weak Q2 guidance to investors in its first quarter earnings report. The stock rebounded minutes later, bringing Netflix's stock down only marginally from where it was before earnings.

Why it matters: Normally, when Netflix beats estimates in earnings, revenue and subscriber additions, its stock would skyrocket, especially amid reports of rival streaming services launching in the marketplace. But investors were bearish on the fact that Netflix says its estimated Q2 earnings per share would be $0.55 compared to the $0.99 analysts were expecting.

By the numbers: per CNBC:

  • Earnings per share: 76 cents, vs. 57 cents expected, according to Refinitiv consensus estimate.
  • Revenue: $4.52 billion, vs. $4.5 billion expected, per Refinitiv consensus estimate.
  • Domestic paid subscriber additions: 1.74 million, vs. 1.61 million, forecast by FactSet
  • International paid subscriber additions: 7.86 million, vs. 7.31 million, forecast by FactSet

Details: The stock initially sunk after the company projected its second quarter earnings per share to be nearly half of what investors anticipated and that paid membership additions would to be less than Wall Street's expectations.

  • Yes, but: Netflix has a traditionally slow Q2, which could have investors feeling slightly more optimistic about the guidance.
  • Netflix says it anticipates a net add of 5 million paid subscribers for the second quarter, which is below Wall Street’s expectations for 6.09 million new paid members.

What's next: Netflix will hold a video Q&A presentation for investors at 6:00 pm ET.

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Jeff Sessions loses Alabama Senate primary runoff

Jeff Sessions. Photo: Michael DeMocker/Getty Images

Former Attorney General Jeff Sessions has lost the Republican nomination for Senate to Tommy Tuberville in Alabama in Tuesday night’s primary runoff, AP reports.

Why it matters: Sessions had been the underdog in the race against former Auburn University head football coach Tommy Tuberville, who had the backing of President Trump. Tuberville will now face off against Sen. Doug Jones (D-Ala.) in November, who is considered to have one of the most vulnerable Democratic Senate seats in the country.

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Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 13,273,537 — Total deaths: 577,006 — Total recoveries — 7,367,106Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 3,424,304 — Total deaths: 136,432 — Total recoveries: 1,049,098 — Total tested: 41,764,557Map.
  3. Politics: Biden welcomes Trump wearing mask in public but warns "it’s not enough"
  4. Public health: Four former CDC heads say Trump's undermining of agency puts lives at risk — CDC director: U.S. could get coronavirus "under control" in 4–8 weeks if all wear masks.

Bank CEOs brace for worsening economic scenario

JPMorgan CEO Jamie Dimon. Photo: J. Lawler Duggan/For The Washington Post via Getty Images

Wells Fargo swung to its first loss since the financial crisis — while JPMorgan Chase and Citigroup reported significantly lower profits from a year earlier — as the banks set aside billions of dollars more in the second quarter for loans that may go bad.

Why it matters: The cumulative $28 billion in loan loss provisions that banks have so far announced they’re reserving serves as a signal they’re preparing for a colossal wave of loan defaults as the economy slogs through a coronavirus-driven downturn.