The technology supports Wall Street

The New York Stock Exchange was in the green on Friday, supported by the technology sector thanks to the good results of Netflix, while job cuts at Google were welcomed by investors.

The Dow Jones, which oscillated between green and red around the balance sheet, rallied 0.13% around . 15:30 GMT, while the Nasdaq rose 1.17% and the S&P 500 0.64%.

On Thursday, the Dow Jones Industrial Average had lost 0.76% to 33,044.56, as had the broader S&P 500 at 3,898.85, while the tech-heavy Nasdaq was down 0.96% to 10,852, 27 points .

“After two consecutive sessions of decline, it looks like we’re going to stabilize thanks to the technology, which continues to be supported,” commented Peter Cardillo of Spartan Capital.

Netflix surprised after the close on Thursday night by announcing a sharp rebound in subscribers, which rose by 7.6 million in the last quarter alone, much more than Wall Street expected.

Those numbers sent the action jumping nearly 7%.

The streaming leader also looks set to enter a new era with the retirement of its founder Reed Hastings, who is giving up his place as co-CEO to become “executive chairman”.

After the recently announced layoffs at, among others, Microsoft, Amazon, Meta, Twitter, it was Google’s turn to cut the workforce.

Its parent company Alphabet has revealed it will cut 12,000 jobs worldwide, or 6% of its workforce. The stock was up 5.15% at $98.75 around 15:30 GMT.

Its boss Sundar Pichai justified the decision in an email to employees, indicating that after two years of “spectacular growth” and hiring “in a different economic context”, the situation now forced the group to reduce its workforce.

“Tech stalwarts have been hiring at an unsustainable pace, and the worsening macro environment is now forcing them to lay off,” commented Dan Ives of Wedbush Securities.

Another company, Wayfair, a highly successful online furniture retailer in the US during the pandemic, also announced cuts to its workforce. The group will lay off 10% of its employees, i.e. 1,750 jobs.

As for the title Alphabet, this reduction in operating costs was welcomed by investors who praised the title Wayfair (+11.63% to $43.44).

Little macroeconomic news was expected on Friday, apart from home resales.

These posted their eleventh month of decline in December, the first since these data began to be collected in 1999. However, the 1.5% drop over one month at an annual rate is less severe than expected.

In terms of valuation, the real estate sector lagged behind (-0.72%), while communication services, to which Google and Netflix belong, rose in the lead (+ 2.45%).

Among the optimistic notes that investors took note of, according to Briefing.com’s Patrick O’Hare, were remarks from European Commission Vice President Valdis Dombrovskis, who believed a recession in Europe could be avoided given better-than-expected growth in the region .

The Eli Lilly lab was sanctioned (-1.26%) after an expedited approval request to the US Drug Regulatory Agency was rejected by the FDA.

In the bond market, the yield on 10-year Treasury bills stretched to 3.45% against 3.39% the previous day.

  1. Nasdaq

.

Leave a Comment