Stock traders can’t relax yet about the gyrations in the world markets. But this morning’s strong rebound in prices from yesterday’s big downturn for media and other companies suggests that they don’t have to panic. At least not yet.
We see green across almost all of the major companies that we track after China’s central bank cut interest rates and lowered the reserves that the country’s banks must hold. That was a response to growing fears that China is losing its power to drive global growth.
Although the Shanghai composite index fell 7.6%, other markets rallied — including in the U.S. The Dow Jones Industrial Average opened up 2.0%, the S&P 500 is +2.2%, and the Dow Jones U.S. Media Index is up 1.7%.
Best Buy is up more than 12.7% after reporting stronger than expected Q2 earnings. And Netflix rebounded 7.1%, bringing it roughly back to where it was on Friday.
It’s early, so expect prices to change. Yet in early trading for Big Media we see Sony + 5.1%, Disney +2.6%, Time Warner +2.4%, Comcast +2.2%, Viacom +2.1%, CBS +1.9%, Fox +1.2%, and Discovery flat.
More broadly we find Apple +5.2%, AMC Networks +4.7%, Amazon +4.3%, Facebook +4.1%, Yahoo +3.6%, World Wrestling Entertainment +4.0%, and Imax +3.3%.
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