Entertainment stocks posted mostly modest gains on Friday, adding to Thursday’s gains, although they faltered after a broader stock market rally disappointed consumer confidence readings.
The Dow Jones Industrial Average and the S&P 500 fell less than 1% this morning after indexes posted their biggest one-day gains since 2020 on Thursday, and the Nasdaq tech index traded in positive territory.
Thursday’s rally came after news of slowing inflation, which raised hopes that the Federal Reserve would slow interest rate hikes. The S&P 500 rose 5.5%. The Dow rose 3.7%, or 1,200 points. The Nasdaq rose 7.4%.
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Friday’s consumer confidence data helped dampen market sentiment.
The University of Michigan said consumer confidence fell 8.7% from October and about 19% from a year ago to 54.7. Economists had expected a reading of 59.5, according to a Wall Street Journal poll.
The number has improved since June but has lost about half of its gains since last month, Director of Research Joan Hsu said in a statement, citing rising interest rates and continuing price hikes among Americans of all demographics.
“Sentimental volatility will continue, reflecting uncertainty about global factors and possible election outcomes,” Xu said. Consumers still expect inflation to rise to 5.1% next year from 5% last year.
Despite last quarter’s slow growth, recession expectations remain high, but entertainment companies can benefit as consumers look for affordable forms of entertainment when times get tough.
“Compared to the other out-of-home options that consumers can choose from, going to the movies remains a very affordable form of local entertainment,” Cinemark CEO Sean Gamble said during the company’s third-quarter earnings call last week. “In addition, it provides an escape from reality that is often needed in difficult times.”
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Cinemark stock settled at $11.93 on Friday. Shares of rival AMC Entertainment, popular with day traders, rose 4.4% to $6.40 Thursday, posting an 18% jump Thursday. Emax Corp shares rose 3.8 percent to $14.23 after rising 6 percent on Thursday.
Shares of Walt Disney Co. rose 2.7% after Black Panther: Wakanda Forever After earned $25.2 million in Marvel Studios’ initial launch Thursday. The shares were sold at $92.90.
Paramount Global shares rose 2% to $19.84, after rising 6.7% Thursday. Warner Brothers, which is up nearly 10% on Thursday. Discovery shares rose another 4.6% to $11.30 on Friday. Sony Group shares also rose 2.6% to $82.61, after rising 6.7% on Thursday. Lionsgate Entertainment shares rose 2.6% to $6.60.
Streaming leader Netflix rose 2.5% to $282.40 after rising 8% the day before. Amazon shares rose 2.5% to $99. Roku stock is up 3% to $57.16, while AMC Networks stock is up nearly 7%, to $20.60.
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