Ulta Beauty Pops; Netflix-Warner Bros deal shakes up streaming stocks

A strong quarterly report helped deliver big gains for the makeup and other beauty products retailer, while the end of a high-profile bidding war created a buzz in the media and entertainment industry.

Major US stock indexes rose on Friday after the headline inflation report came in lower than expected, boosting expectations for a rate cut when the Federal Reserve meets next week. The S&P 500 and Dow Jones rose 0.2%, approaching their all-time highs, while the Nasdaq rose 0.3%. See here for more Investopedia In today’s market movements.

Shares of Ulta Beauty ( ULTA ) rose nearly 13%, gaining the most of any stock in the S&P 500, after the beauty retailer reported better-than-expected earnings and raised its full-year forecast. The beauty category has seen resilient demand even as economic uncertainty impacts other retail sectors. An increase in transactions and average ticket values ​​compared to last year, along with the acquisition of British luxury cosmetics company Space NK, and the opening of new stores, helped fuel Ulta’s strong performance.

Moderna (MRNA), which derives the bulk of its revenue from its COVID-19 vaccine, saw its stock jump nearly 9% after publishing a long-term study in France suggesting the vaccine is safe and effective. The nationwide study reviewed data from about 28 million people and determined that those who received the Moderna or Pfizer (PFE) vaccine had about a 75% lower risk of dying from COVID-19 than those who were not vaccinated. Pfizer shares rose about 1%.

Medical device maker Cooper Companies (COO) beat quarterly earnings expectations and delivered an upbeat outlook. The company, which specializes in contact lenses and surgical products, also announced a comprehensive strategic review aimed at simplifying its business. Cooper Companies shares rose about 6%.

Shares of dollar store operators extended recent gains after strong earnings reports that revealed traction among customers of all income levels looking for deals. Shares of Dollar Tree (DLTR) and Dollar General (DG) added about 6% each in Friday’s trading session.

Entertainment giant Netflix (NFLX) said it has agreed to buy Warner Bros. Discovery’s (WBD) in an $83 billion deal. Warner Bros. plans to Discovery to move forward with plans to spin off its cable and TV channels into a separate business, with Netflix set to take over the remaining studio and streaming operations. The news weighed on shares of Paramount Skydance (PSKY), which also made a bid for Warner Bros. Studios. Discovery. Paramount shares lost nearly 10%, marking the largest loss in the S&P 500. Netflix shares fell about 3%, while Warner Bros. shares rose. Discovery by more than 6%.

Shares of commercial property and casualty insurer WR Berkley (WRB) fell nearly 6% after the company announced that Japan’s Mitsui Sumitomo Insurance has acquired at least a 12.5% ​​stake as part of previously announced agreements.