Stock Rally Rages, Netflix Jumps 8%

Investors bid just about everything higher on Friday, as markets finished an up-and-down week on an upswing. Nine of the 11 market sectors rose on the day; only health care and information technology finished lower, and those two sectors each lost less than 0.3%.

Despite that particular underperformance, the tech-heavy Nasdaq managed to finish higher anyways, adding 0.7% as all three major stock indices finished meaningfully higher. The Dow Jones Industrial Average fared even better, adding 369 points, or 1.4%, to finish at 26,075.

Bonds? Why not? Investors also piled into U.S. government bonds, a risk-averse strategy that can often be seen on days when stocks fall and investors reposition out of more volatile asset classes.

It’s a bit more unusual to see both a great day for stocks and the simultaneous heavy buying of U.S. government debt. The yield on the 30-year U.S. Treasury (1.33%) and 10-year U.S. Treasury (0.64%) each hit lows not seen in nearly two months as U.S. virus numbers continue to rise.

[Sign up for stock news with our Invested newsletter.]

Bond yields move inversely with bond prices.

Netflix up 8%. Why would streaming giant Netflix (ticker: NFLX) be immune from Wall Street’s largely unsubstantiated euphoria on Friday? It wouldn’t of course, so shares jumped nearly 8.1% and clocked a new all-time closing high.

NFLX shares are enjoying a nice run-up before reporting second-quarter earnings on July 16. The stock is up nearly 70% year to date, which, even in a year of indiscriminate Big Tech buying, is pretty good. Goldman Sachs ( GS) boosted its price target on Netflix shares from $540 to $670 per share, maintaining its “buy” rating.

American Airlines striking hard bargains. American Airlines ( AAL) is playing hardball with Boeing ( BA), saying it won’t take delivery of 17 Max planes. American had ordered and Boeing has built unless Boeing arranges the planes to be financed.

Financing deals for the aircraft have expired since the global grounding of Boeing’s 737 Max in March 2019 following two deadly crashes that killed hundreds of people. There’s another hurdle Boeing needs to clear before delivering these craft as well: a recertification and lifting of the grounding order imposed by the Federal Aviation Administration.

More from U.S. News

Artificial Intelligence Stocks: The 10 Best AI Companies

10 of the Best Tech Stocks to Buy for 2020

The Complete Berkshire Hathaway Portfolio

Stock Rally Rages, Netflix Jumps 8% originally appeared on

Related Categories:

Latest News

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up