The New York Dow Jones Stock Exchange closed higher on Friday (January 20) on speculative buying after a third straight day of declines, and the Nasdaq rose more than 2% as quarterly earnings releases boosted Flix net stocks A rose shares of’ Alphabet, Google’s parent company, after announcing layoffs.
The Dow Jones Industrial Average closed at 33,375.49 points, an increase of 330.93 points or +1.00%, the S&P500 index closed at 3,972.61 points, an increase of 73.76 points or +1.89%, and the Nasdaq index closed at 11,140 increases. 288.17 points or +2.66%.
in the past week The Dow fell 2.7% and the S&P500 shed 0.66%, but the Nasdaq gained 0.55%, with the Dow and S&P 500 rebounding on speculative buying after three straight days of declines.
Netflix shares rose 8.46% after it said subscriber numbers rose more than expected in the fourth quarter and said co-founder Reed Hastings would step down as CEO.
Netflix reports quarterly profits as technology and growth sectors grapple with the impact of rising interest rates in the US. and worries about a recession This has caused companies such as Microsoft and Amazon to lay off thousands of workers.
Alphabet’s shares rose 5.34% after it became the latest company to announce 12,000 job cuts.
Communications Services shares rose 3.96 percent, their biggest daily percentage gain since Nov. 30 and the biggest gainer among 11 S&P 500 sectors.
In 2022, the growth of stocks such as communication services group has been adjusted worst and has declined over the past months. as investors move to high dividend stocks
Ken Polcari, an analyst with Florida-based Case Capital Advisors, said: “The market has probably increased due to the oversold conditions in the last 3 days and some speculative buying.”
Markets were also supported by comments from Federal Reserve Governor Christopher Waller on Friday that the Fed may be approaching a point where interest rates are at a level sufficient to slow inflation.
Markets expect the Fed to raise interest rates by 0.25% when it announces the outcome of its monetary policy meeting on February 1.
However, investors are still concerned about the performance of listed companies. As the US economy shows signs of slowing down and may enter a recession
The US National Association of Realtors (NAR) said on Friday that pre-owned home sales fell 1.5 percent to 4.02 million units in December. month on month This was the lowest level since November 2010. But it was above analysts’ expectations of 3.96 million units, the 11th consecutive month of declines.
year on year home sales fell 34.0% in December, with existing home sales hurt by rising house prices and mortgage interest rates.
Data is expected from refinitiv. Earnings for companies in the S&P500 index will be down 2.9% in the fourth quarter of 2022 year over year. And that compares with a 1.6% drop at the start of the year.
Shares of Goldman Sachs fell 2.54%, trailing back on Wall Street. The newspaper reports that the Fed is investigating the consumer business of Goldman Sachs