Best Buy Hits New High on August 25, SPY Falls 1.2%
Best Buy, Netflix, and Baker Hughes among top gainers on August 25
The market was still in turmoil on Tuesday, August 25, after a short rise in the SPDR S&P 500 ETF (SPY). SPY was down by 1.2% for the day. However, Best Buy (BBY) soared high, delivering a 12.57% return. Netflix (NFLX) and Baker Hughes (BHI) followed with 4.79% and 4.33%, respectively.
BBY stock rose to new highs due to an impressive earnings report for the second quarter of 2015. The retail company reported an increase in sales and a rise in profits and EPS (earning per share). BBY’s online sales also registered a rise of 17%.
NFLX rebounded to 4.79% on August 25 after a 6.81% fall on August 24. The media company’s stock has little to do with the turmoil in China. So the stock suffered due to market sentiments, which brought about the consequent collapse. The company announced its entry into the Asian market by partnering with the Japanese company SoftBank (SFTBF).
SoftBank is a mobile network company in Japan that will be marketing Netflix services at its retail locations. News that the company will be varying the demographics of its shows to be streamed online, especially toward teens, has added to confidence in the company. The company’s focus on the teenage crowd should ensure an increase in viewers and thus a rise in the reach of its service to wider audiences.
The upgradation of Baker Hughes from the energy sector to a “buy” rating has boosted the stock to the top three gainers in SPY.
The bottom three stocks in SPY were Pepco Holdings (POM), Chesapeake Energy (CHK), and Navient (NAVI). Their respective yields on August 25 were -16.47%, -8.77%, and -7.81%. POM fell hard on Wall Street when the Public Service Commission of Columbia rejected the takeover proposal of POM by Exelon (EXC), which could have made it the United States’ largest customer-based utility company.
In the next part of this series, we’ll take a look at the sector performances of SPY.