- Declining subscriber growth is hitting Disney stocks
- Tesla is picking up again, leading to progress among growth companies with mega-capital
- The shares in Tapestry increase the sales forecast
- Rivian continues to rise one day after market debut
- Dow up 0.14%, S&P up 0.30%, Nasdaq up 0.86%
November 11 (Reuters) – The S&P 500 and Nasdaq recovered on Thursday from two days of inflation-driven sales, but losses at Walt Disney due to declining subscriber growth in their streaming video service weighed on Dow.
A record rally in Wall Street’s major indices ended earlier this week as recent inflation reports suggest it will take longer for the current rise in prices to cool in the midst of congested global supply chains.
But Arthur Hogan, chief marketing officer at National Securities in New York, said investors were able to look beyond the short term as “we only have more demand than supply.”
“That’s probably a good thing for future earnings growth,” he said.
Six of the 11 major S&P 500 sector indices rose in early trading, with consumer discretionary (.SPLRCD) leading the way.
Tesla Inc (TSLA.O) rose 1.4% to recoup some loss in the 12.6% drop earlier this week, even after records showed that CEO and top owner Elon Musk had sold around $ 5 billion of the stock the last days. Read more .
Other mega-cap technology and communications stocks, including Google owner Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), Meta Platforms Inc (FB.O), formerly known as Facebook, Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) rose between 0.4% and 0.8%.
Walt Disney Co. (DIS.N) fell 8.0% to a decline among Dow (.DJI) components, as they reported the smallest increase in Disney + subscriptions since the launch of the service and delivered a low profit on the theme park division. [nL4N2S14JG]
At 9:53 ET the Dow Jones Industrial Average (.DJI) was down 51.75 points, or 0.14%, to 36,028.19, the S&P 500 (.SPX) was up 13.79 points, or 0.30% , to 4,660.50 and Nasdaq. (.IXIC) was up 134.58 points, or 0.86%, to 15,757.29.
Amazon-backed electric car maker Rivian Automotive Inc (RIVN.O) jumped 9.8%, increasing the nearly 30% gain on its feature film debut. read more
Tapestry Inc (TPR.N) rose 9.2% after the Coach bag manufacturer raised its annual sales forecast, strengthened by a sharp decline in demand for luxury goods. read more
Market participants also saw developments around the nomination of the central bank’s leader, with President Joe Biden still considering whether to keep Jerome Powell for another term or elevate Fed Governor Lael Brainard to the post. read more
Advanced issues exceeded the declines by a ratio of 2.09 to 1 on the NYSE and a ratio of 1.95 to 1 on the Nasdaq.
The S&P index recorded four new 52-week highs and three new lows, while Nasdaq recorded 35 new highs and 51 new lows.
Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Arpan Varghese and Aditya Soni
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