US stocks edge higher ahead of Apple results Netflix shares plunged as its overseas business and slowing subscriber rate dragged on future profits, while Apple fell 2 per cent ahead of its second-quarter results to be released later on Tuesday. Elsewhere, telecoms leapt ahead of all major sector groups in the S&P 500, gaining almost 2 per cent in early trading as AT&T beat forecast earnings and jumped more than 3 per cent. Overall, the S&P 500 edged 0.1 per cent higher to 1,368.03 in Tuesday's morning session. Heading into the day, 79 per cent of the 134 companies on the benchmark US index that have reported earnings thus far have beaten analyst expectations, according to Christine Short at S&P Capital IQ. Still, the main US market has fallen 2.7 per cent in April as investors have looked beyond Wall Street analysts lowering expectations before earnings season began. Shares in Netflix, the home DVD delivery and internet streaming company, declined more than 14 per cent to $87.20. After Monday's close, the company reported losses of 8 cents a share, 18 cents better than expected. Revenues grew 28 per cent to $870m compared with its first-quarter results from a year ago. The company said international subscriptions rose 1.2m to 3.1m, but that the business lost $103m in the period. Analysts, encouraged by the results, were wary of a slackening in the pace of new subscribers. "Although Netflix's first-quarter domestic subscriber growth, contribution margins and international subscriber growth were all better than expected, second-quarter subscriber guidance came in below Street expectations," said Anthony DiClemente, analyst at Barclays. Mr DiClemente trimmed his price target in shares of the company from $115 to $95, but maintained his "hold" rating. AT&T, the largest US phone company by revenues, saw shares rise more than 3 per cent to $31.68 as it said more users moved to the iPhone, which boosted data spending. The company reported earnings of 60 cents a share in the first quarter, 3 cents better than the same period a year ago and analysts" consensus for the period. AT&T said it sold 5.5m smartphones in the quarter, exceeding the record sales for the first months of the year set last year. All eyes are on Apple's second-quarter results, which are set to be reported after Tuesday's close. Shares in the iPad and iPhone maker have risen 40 per cent in the year to date and are responsible for a hefty portion of the S&P 500"s growth in 2012. Shares in Apple were 1.9 per cent lower to $560.95. The Dow Jones Industrial Average was 0.4 per cent higher to 12,973.56, while the Nasdaq Composite Index moved 0.2 per cent lower to 2,963.66.