U.S. markets recovered Friday after a steep drop a day earlier, thanks to an upbeat jobs report and a signal from the head of the Federal Reserve that interest rates will not be rising imminently.
The Dow Jones Industrial Average index in midday trading Friday was up 3.5%, or more than 800 points, while the tech-heavy Nasdaq was up 4.5%.
Big gainers as of 1:20 p.m. ET included Netflix, up 8.9%, as well as Spotify (+11%) and Roku (+12%). Other tech and media stocks climbing Friday included Lionsgate (+6.6%), Twitter (+6.65%), Amazon (+5.8%), Alphabet (+5%), Apple (+4.25%), Facebook (+4.2%) and Disney (+3.9%).
The rise in tech and media stocks come after the broader market was dragged down Thursday, in part fueled by Apple’s announcement that it would miss revenue targets for the year-end 2018 quarter.
On Friday, the Department of Labor said U.S. employers added 312,000 jobs in December 2018, the fastest rate since last February, while the unemployment rate rose slightly to 3.9%. In addition, Fed chairman Jerome Powell issued comments reassuring investors that the central bank would be “patient” as it considered whether or not to raise interest rates.
Netflix in particular also benefited from a bullish call Friday from Goldman Sachs, which reiterated its “buy” rating and told clients in a research note Friday the stock price could rally 50% in the next 12 months. The firm added Netflix to its Conviction Buy List, a targeted selection of stocks with the most upside potential.
“[W]e believe Netflix represents one of the best risk/reward propositions in the internet sector,” Goldman Sachs analyst Heath Terry wrote in a note. “We continue to believe Netflix’s investment in content, technology and distribution will continue to drive subscriber growth well above consensus expectations both in the U.S. and internationally.”
More to come
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