UPDATED at market closure
Stocks rose sharply on Monday with many media stocks outperforming the broader market because Wall Street – at least for today – showed a glimmer of hope on the U.S. trajectory. coronavirus pandemic, even as Wall Street analysts just started to count the adverse effects of the virus on corporate finances for the current quarter.
That said, the Dow Jones Industrial Average started stronger and ended stronger, jumping more than 1,600 points, or 7.5%, with showbiz shares even lighter than other sectors. Among the beleaguered theater shares, AMC Entertainment is 25%. Marcus, Cinemark and National Cinemedia were higher by 12%, 10% and 8%, respectively. AMC’s leveraged runs out of cash and hopes government and cinema help will open in June.
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Among broadcasters, Sinclair rose 16% and Nexstar rose 15%.
Live Nation, whose concerts have been canceled worldwide, has increased by almost 3%.
Also optimistic, Fox rose 13%, AMC Networks 10%, Lionsgate rose 9%, Discovery 7%, Disney 5% and Netflix 5%, Comcast nearly 7%.
Spotify shares started when the only stock dropped in the list of 40 media shares. The deadline followed after an analyst from Raymond James, Monday morning, cut his recommendation from ‘strong buy’ to ‘market performance’, citing less involvement and less downloads and more competition from Amazon music in the US to higher use of smart speakers . But even Spotify turned positive, closing up 0.53%.
Technology is strong because Twitter is up 7.9% and Google’s Alphabet parent 8%.
Apple rose by almost 9%.
The feeling over the weekend is that corona virus cases around the world are growing more slowly. The U.S. epicenter, New York City, reported 594 deaths on Sunday, down from 630 on Saturday. Italy, France and Spain also reported a slower increase in fatalities.
Economists estimate the economy has entered a recession and will contract by around 30% in second quarter GDP. But they also expect the spring to return from various degrees, starting in the third quarter.
However, experts urge caution. The market has been volatile for weeks. With a tense health system, diminishing economic activity and increasing unemployment, there is still little visibility in how long the situation will drag on and if the $ 2 trillion package the government will be enough to see companies and individuals through the worst.
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