US stocks soared on Friday, as the Dow Jones Industrial Average came close to its record high and the S&P 500 recorded its highest value yet. The rally followed the same trend as Thursday, and analysts estimate that the Dow Jones will be soon hitting a new record high.
The Dow Jones closed at 18,273 on Friday, 20.32 points (0.11%) up from the earlier day. The index is now only 16 points away from its all-time daily theoretical high recorded in March this year, and if the tendency keeps it will probably surpass it soon.
Meanwhile, Friday’s trading marked a milestone for the S&P 500, as the day ended with the index hitting a new record high after rising for the second day in a row. The 1.1 percent gain was enough to put S&P at 2121.10, owed in the most part to the rally of Netflix shares.
Netflix shares closed at $613.25 each on Friday, after a striking 4.5 percent increase, or $26.40. The rally came after rumors broke out in the media that the company is one step away from gaining access in the Chinese market.
Netflix shares have almost doubled in values this year, increasing by an estimated 80 percent, and if it will be allowed to stream its content in China, the rally will be further stimulated. According to Bloomberg reports, Netflix is preparing to enter China via Wasu Media Holding, an online video company with strong ties to Alibaba CEO Jack Ma.
As for Dow Jones, the index was boosted by the likes of Cisco Systems, Inc. and other tech companies. Cisco shares rose 1.7 percent after the company reported higher than expected quarterly earnings. But at the same time, the stocks of industry giants like Microsoft Corporation or Apple Inc. declined in Friday’s trading, after losing 0.87 percent and 0.15 percent each.
The biggest loser, however, was Symantec Corporation, whose below expectations earnings report led to a 5.5 percent decline in its shares.
Next week will be decisive to see if Dow Jones will beat its all-time daily high record again. If until Friday it was mostly tech companies who published their results, next week it will be retail industry’s turn. Retail giants such as Wal-Mart Stores, Best Buy Co Inc, Home Depot Inc or Target Corporation are all expected to post their quarterly earnings.
Image Source: Reuters