Dow Jones closes in positive territory
Netflix makes investors want to buy with strong sales
01/20/2023, 10:19 p.m
Microsoft and Amazon are laying off thousands of employees as high interest rates and a gloomy economic outlook weigh on business. However, Netflix can score with strong customer growth in the fourth quarter. Stockbrokers therefore also access other titles.
Strong numbers from Netflix put investors on Wall Street in a buying mood on Friday. The index of the technology exchange Nasdaq gained 2.66 percent to 11,140.43 points. The broader one S&P 500 increased 1.89 percent to 3972.6 points. the Dow Jones Index the standard values were one percent higher at 33,361.73 points.
Netflix was able to score with stronger-than-expected customer growth in the fourth quarter. The shares of the streaming service rose by 6.5 percent. “While Netflix has done really well and it’s very promising, it’s actually going to be one of the toughest earnings seasons for big tech,” said Sylvia Jablonski, investment professional at Defiance ETFs.
Rising interest rates and a bleak economic outlook have forced companies like Microsoft and Amazon to lay off thousands of employees. Google parent Alphabet is also cutting 12,000 jobs. The shares of the technology group then rose by around three percent, supported by the prospect of lower personnel costs. Amazon, in turn, is investing billions in its US cloud services business and creating at least 1,000 new jobs there in the coming years. Shares rose about 2 percent.
Goldman Sachs under pressure
Confidence in the commodity markets was boosted by the fact that China had reached the peak of severe corona infections shortly before the start of the Chinese New Year, according to the authorities. This increases hopes that the reopening of the economy will boost demand for oil. The North Sea variety Brent and the US variety STI increased in price by 0.11 percent to 87.73 and by 1.33 percent to 81.4 dollars per barrel (159 liters). With that, the prices headed for the second weekly gain in a row.
Investors on the stock markets therefore stocked up on shares from energy companies. The oil companies chevrons and ExxonMobil gained up to 1.84 percent. Relief comes from the investors of Kohl’s broad. The US retailer has given Wells Fargo financial leeway with new loan agreements of 1.5 billion euros. Shares rose 1.72 percent.
Shares in the American online furniture seller Wayfair jumped more than 20.92 percent in the face of new austerity measures. The group cuts around 1,750 jobs, which corresponds to ten percent of the workforce. Analyst Phillip Blee of research house William Blair said that management’s focus on profitability and cash generation would ease investors’ key concerns. In the past twelve months, the papers had fallen by 75 percent.
The shares of Goldman Sachs came under pressure after the money house was targeted by financial watchdogs, according to a report in the “Wall Street Journal”. The papers lost 2.52 percent. According to the report, the US Federal Reserve is investigating whether the bank has taken adequate safety precautions in expanding consumer lending.