Major stock indexes fell Monday morning and are trading just above daily lows as lunchtime approaches. Dow Jones component waltz disney (DIS) launched CEO Bob Chapek after the streaming service lost more than $1 billion in the last quarter.
The S&P 500 lost 0.6% while the Nasdaq fell 1.1%. The Dow Jones Industrial Average edged down 0.3%. The Russell 2000 Small Cap Index fell 0.9%.
The trusted Invesco QQQ (QQQ) technology-based Nasdaq 100 ETF fell 1.1%.
Volume on the NYSE and Nasdaq was higher from the same time on Friday. It’s a shortened holiday week, so expect volume to contract as people head out to see family and friends.
Crude oil fell 1.4% to $79.01 a barrel after Saudi Arabia proposed that OPEC increase production by 500,000 barrels. It’s probably no coincidence that the Biden administration just backed the Saudi leader’s immunity in Khashoggi’s murder.
The SPDR Energy Select Sector ETF (XLE) fell 2.3%.
Natural gas bucked the downtrend gaining 6.8%. It is trading above $6 per million British thermal units.
The yield on 10-year Treasury bills lost one basis point to 3.82%. Bitcoin fell 3.6% to $15,930.
European markets are down, with the German DAX losing 0.4% and the Parisian CAC 40 0.2%. London’s FTSE 100 was down 0.1% in afternoon trading.
The odds of a 50 basis point hike at the December Fed meeting stand at 85.4% while 14.6% are looking for a 75 basis point hike, according to the CME FedWatch Tool. Raphael Bostic (non-voting member) of the Fed said he was in favor of slowing rate hikes and estimated that an additional 75 to 100 basis points are needed to curb inflation.
Retailers are expected to release their results on Tuesday include best buy (ABY), Nordström (JWN), dollar tree (DLTR) and Dick Sporting Goods (DKS).
Chinese stocks tumbled as rising disease sapped hopes the Asian nation will abandon its zero Covid policy. A continued economic slowdown in China will weigh on the global economy.
Disney shocks investors with Chapek Boot
waltz disney (DIS) rose 6.2% in the stock market today following the surprise announcement that former chairman and chief executive Bob Iger will take over as CEO, effective immediately. Bob Chapek replaced Iger in February 2020 but struggled during his tenure.
The theme park and media giant reported worse-than-expected fourth-quarter fiscal losses across streaming services Disney+, Hulu and ESPN Now, losing twice as much money as a year ago.
Profit targets have not played out as expected, generating more than $8 billion in losses since the Disney+ service launched in November 2019. While Disney+ had 164.2 million subscribers in the third quarter, the service lost $1.47 billion.
Disney stock is 43% off its 52-week high, but the leader of the S&P 500 and Dow Jones today.
The funds hold 30% of DIS shares but have sold shares. 3,920 owned them in September, compared to 3,965 in June and 3,999 in March.
netflix (NFLX) fell 0.9% in light volume, reacting to news from Disney. Netflix stock is finding support at its 21-day exponential moving average.
Ryan Cohen added stocks as he believes the major streaming company is undervalued after a huge selloff this year.
Tesla at two-year low; Crypto exchange stock falls
You’re here (TSLA) fell more than 5% as investors hit the exits amid fears that CEO Elon Musk’s Twitter troubles could spread like a contagion through electric vehicle sales. The stock fell to its lowest level in two years and is now down more than 58% since the all-time high of 414, recorded on November 4, 2021.
Crypto exchange Coinbase (COIN) fell 7.6% as bitcoin fell on the heels of the collapse of crypto exchange FTX. FTX went bankrupt earlier this month.
The FTX fallout has bitcoin traders questioning the viability of the entire digital currency environment. COIN shares are down about 88% from their 52-week high. The stock began trading on April 14, 2021.
Dominos Pizza (DPZ) rose 2.5% after announcing it would employ 800 GM Chevy Bolt electric vehicles in its delivery fleet. The first 100 are expected to arrive in November, with the remaining 700 in the coming months. The company cites reduced maintenance costs, savings on gas expenses and advanced safety features as benefits of adding electric vehicles.
Domino’s stock is finding support at its 200-day moving average.
Ali Baba (BABA) fell 4.7%, Pinduo-duo (PDD) lost 3.6% and NIO (NIO) plunged 4.4% on the news from China.
Dell Technologies (DELL) fell 4.3% and ZoomTechnologies (ZM) lost 1.3%, ahead of the third quarter earnings release expected after the close.
J. M. Smucker (SJM) recovered, up 1% after reporting a beating of higher and lower Q3 2023 results. The company also increased its full-year 2023 EPS and net sales growth.
The stock is in the 5% buy zone of a handle cup base, with a buy point of 145.00.
Stock Market Today: IBD 50 Movers
The Innovator IBD 50 (FFTY) ETF lost 2%, underperforming the major equity indices.
Shoal technologies (SLHLS) clawed back earlier gains, down 0.7%, and extended from a 5% buy zone off a choppy base with a buy point of 28.57.
earth stone energy (ESTE) lost a further 9.4% and is trading below its 21-day line.
Daqo New Energy (DQ) fell 2.3% along with other Chinese stocks.
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