Nasdaq jumps 1% as investors await more earnings, Netflix pops

The Nasdaq rose Wednesday as traders assessed more corporate earnings, and Netflix shares jumped on better-than-expected second-quarter results.

The Dow Jones Industrial Average rose 2 points, or 0.01%. The S&P 500 fell 0.45% and the Nasdaq Composite gained 1.22%.

Some investors have been encouraged by the recent trading action, believing it is signaling that the bear market has bottomed. NYSE stocks achieved a widely followed "90% up day" on Tuesday with more than 90% of stocks listed on the exchange advancing and accounting for more than 90% of the volume.

"We view this bullish breadth day as a sign that the summer rebound for U.S. equities can continue," wrote Stephen Suttmeier, technical research strategist for Bank of America, in a note Wednesday.

Netflix jumped 3% after saying it lost only 970,000 subscribers in the second quarter, less than the 2 million it had previously projected. The streaming giant's earnings per share also came in above analyst expectations.

Baker Hughes plunged 13% after it reported disappointing second quarter earnings. The oilfield services company reported earnings of 11 cents per share, which is half what analysts were expecting, according to Refinitiv.

Biogen declined more than 3% despite posting a beat in its most recent quarterly results. The company warned that its revenue could take a hit from growing competition from generics.

About 12% of S&P 500 companies have reported earnings thus far. Of those companies, 68% have beaten analyst expectations, according to FactSet. Investors had been awaiting this earnings season as they search for clues on how companies are faring with inflation at levels not seen in 40 years.

Tesla and United Airlines are slated to post their latest quarterly results after the close.

The Dow rallied more than 700 points during Tuesday's session, with the S&P 500 and Nasdaq soaring 2.8% and 3.1%, respectively. The three benchmarks also closed above their respective 50-day moving averages for the first time since April.

Investors pointed to a Bank of America survey that suggested deteriorating sentiment could potentially set up a buying opportunity in the market. Meanwhile, the U.S. dollar, which recently surged to a 20-year high against the euro, softened, giving the rally more steam.

Still, some market participants were skeptical of the bounce.

"History says, but does not guarantee, that yesterday was more likely a bear market bounce than the start of a new bull market," said Sam Stovall, chief investment strategist at CFRA Research.

On the economic front, a report from the Mortgage Bankers Association pointed to more pain for U.S. consumers as they deal with higher prices and interest rates. Mortgage demand declined more than 6% last week compared with the prior week, dropping to its lowest level in 22 years.