Stock market/ Disney earnings/ S&P 500/ Nasdaq/ ASML/ Tapestry/ U.S. inflation/ interest rates/ bond yields/ crypto market/ Bitcoin/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ The U.S. stock market remained steady on Thursday, with the S&P 500 staying near record highs. Disney’s shares soared after strong quarterly results, helping offset tech declines. Bond yields fluctuated on inflation and employment data, while global markets showed mixed trends.
Wall Street and Disney Surge Quick Looks
- Market Performance: The S&P 500 remained nearly unchanged, holding close to recent highs.
- Disney’s Boost: Disney stock jumped 10.6% following strong quarterly profits and blockbuster movie success.
- Tech Highlights: ASML shares rose 4.9% amid optimistic semiconductor forecasts, while Cisco fell 1.3% on modest projections.
- Luxury Sector Moves: Tapestry canceled its merger with Capri, causing Tapestry shares to rise while Capri’s fell.
- Economic Indicators: U.S. inflation showed a surprising uptick, with wholesale prices up 2.4% in October.
- Bond Yields Reaction: Treasury yields fluctuated as inflation and employment reports sparked mixed investor responses.
- Crypto Gains: Bitcoin saw a 1% increase, nearing $93,000 amid Trump’s crypto-friendly stance.
Wall Street Drifts Near Record Highs, Led by Disney and ASML Gains
Deep Look
The U.S. stock market drifted near its record highs on Thursday morning as investors analyzed earnings reports, inflation data, and employment indicators. After a sharp rally following former President Donald Trump’s re-election, market enthusiasm has started to temper. As of 9:50 a.m. Eastern, the S&P 500 remained mostly flat, staying near its peak set earlier in the week. The Dow Jones Industrial Average climbed by 41 points (0.1%), while the Nasdaq composite saw a slight 0.2% dip.
Disney Powers Higher Amid Strong Quarterly Profits
The Walt Disney Co. led the market’s gains, surging 10.6% after exceeding Wall Street’s profit expectations for the quarter. CEO Robert Iger credited the company’s success to profitable growth in its streaming services and impressive box office returns for movies like Inside Out 2 and Deadpool & Wolverine. These results provided a much-needed lift for Disney, which has faced challenges in recent years in its streaming and entertainment divisions.
Technology Sector Highlights: ASML and Cisco
ASML, a critical supplier to the chip industry, added positive momentum to the tech sector with a 4.9% rise in shares. The Dutch firm, integral to the semiconductor supply chain, reaffirmed its financial outlook and forecasted global semiconductor sales surpassing $1 trillion by 2030. This outlook, bolstered by the growth in AI technology, signaled potential expansion in the semiconductor market. However, Cisco Systems saw its shares drop by 1.3% despite strong earnings. Analysts suggest investors may have expected more aggressive financial projections from the tech giant, adding to market caution.
Super Micro Computer Faces Struggles Amid AI Boom
Super Micro Computer, a standout performer in the AI surge, faced the day’s steepest loss, plunging 13.4%. The company recently announced delays in filing quarterly financial reports with U.S. regulators, adding to concerns raised after public accounting firm Ernst & Young resigned. A board committee has since stated there is no evidence of fraud or misconduct by the company’s management or board, though investor concerns linger.
Luxury Brands and Mergers: Tapestry Cancels Capri Deal
Shares of Tapestry, the luxury goods company, rose 11.4% following news that it would terminate its $8.5 billion merger with Capri, owner of luxury brands like Michael Kors. The merger, initially set in August 2023, was disrupted by multiple obstacles, including a lawsuit from the Federal Trade Commission seeking to block the deal on antitrust grounds. Capri’s stock declined by 3.2% after the announcement.
Economic Indicators Show Mixed Signals
Bond market yields fluctuated in response to new data, showing inflation rising and a steady job market. The U.S. wholesale price index increased by 2.4% in October, exceeding September’s 1.9% and surprising economists. Concurrently, the labor market continued to show resilience, with fewer workers filing for unemployment. Treasury yields initially surged following these reports but later settled, with the 10-year Treasury yield easing to 4.42% from 4.45%.
The Federal Reserve has been cutting interest rates since September, seeking to support the job market while targeting a 2% inflation rate. Trump’s re-election, however, has brought new economic policy considerations. His proposals include lower taxes, reduced regulation, and higher tariffs, all of which could increase government debt and potentially fuel inflation alongside economic growth.
International Markets and Cryptocurrency Surge
In international markets, European indices advanced, led by Germany’s DAX, which rose by 1.4%. Asian markets displayed mixed results, with Hong Kong’s Hang Seng falling by 2% while South Korea’s Kospi rose 0.1%. Bitcoin gained approximately 1% to reach $90,916, with cryptocurrencies generally trending upwards. Trump has voiced support for cryptocurrency, promoting it as part of his vision to make the U.S. a global crypto hub.
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