Shares in Netflix, Warner Bros Discovery and AMC Networks were among the top gainers in a so-called “Santa Claus rally” today near the conclusion of a rough year for media and tech stocks.The tech-heavy Nasdaq finished the day up 2.6% to finish at 10,478.09, but it remains on track for its worst year since 2008. Even so, the Santa Claus rally — a nickname for a frequently occurring holiday-season uptick — is a real thing. And it can often bode well for the new year. According to FactSet, the S&P 500 Index gained an average 1.3% a year over the last five trading days of the year and the first two of the new one every year since 1950. It went on to finish in plus territory for the full year 79% of the time.Encouraging data on employment trends, with inflation easing a bit of late, along with bargain-hunting among value investors, were additional reindeer pulling Santa’s sleigh.Netflix rose more than 5% to $291.44. The stock got a rare double upgrade by Wall Street research firm CFRA, which raised its rating to “buy” from “sell,” bypassing the middle recommendation tier on an upbeat assessment of the company’s new ad-supported streaming tier. As with the broader sector, Netflix’s near-term upswing came after a sharp decline over the past few months. Its shares have fallen about 50% in 2022 to date.Other winners today included Warner Bros Discovery, up 6% to $9.43; Chicken Soup for the Soul Entertainment, up 8% to $5.52; AMC Networks, up 7% to $15.48; and Endeavor Group Holdings, up 6% to $21.93.
Among large-cap issues, Apple, Amazon, Disney and Meta Platforms also posted gains of between 3% and 4%.
A small handful of declining stocks included Innovid, Dolphin Entertainment and National CineMedia, but they sold off only between a fraction and 1% on the day.Tomorrow will be the final trading day of 2022. Markets will be closed on Monday in observance of New Year’s Day, with 2023 trading officially kicking off on Tuesday.
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