Friday's Headlines: Big Gains For IMAX and Tiffany
1. The Wall Street rollercoaster shows no signs of slowing down yet as major indices closed in the green for a change yesterday. The Nasdaq led the gains, closing up 2.3%, while the Dow Jones and the S&P 500 ended the day up 0.95% and 0.47% respectively. Marginal as they may be, these gains indicate a favorable reaction to extreme measures being taken by policy-makers across the world in an effort to avoid a recession. The Federal Reserve has recently opened up lines of cheap credit to bolster spending and the European Central Bank has committed to buying $820 billion worth of sovereign debt. More on these measures here.
2. IMAX shareholders got a welcome boost on Thursday after company stock rocketed by almost 60%. This jump was triggered by the news that the National Association of Theater Owners (NATO) had asked Congress for a bailout yesterday as the industry finds itself one of the hardest hit by the slowdown in spending and social distancing. There was also positive news that cinemas might start reopening as early as April in China. IMAX has more than 700 theaters in the region. More on this here.
3. Bloomberg has reported that LVMH is now thinking of buying Tiffany shares in the open market thanks to the recent coronavirus-induced selloff. The luxury group behind brands like Louis Vuitton agreed to acquire the iconic New York jewelers for $16.2 billion back in November 2019. However, Tiffany shares had fallen more than 17% in the past month thanks to the wider market sell-off, reportedly prompting LVMH to consider buying up the company at a big discount. Tiffany shares predictably jumped back to pre-crisis levels yesterday on the back of the news. More here.