Big hit for Disney stock
Wall Street continues negative trend
12/19/2022, 10:23 p.m
Persistent fears of recession also caused losses on Wall Street at the beginning of the week. This continues the negative trend from the previous week – albeit at a slower pace.
US stocks continue the sell-off from the last central bank week of 2022 on Monday. Of the Dow Jones Index fell 0.5 percent to 32,758 points. At the daily low, the index was already at 32,582 points. Of the S&P 500 was down 0.9 percent (3,817 points) and the Nasdaq Composite (10,546 points) was down 1.5 percent.
According to experts, the indices are on track to post their biggest annual percentage losses since the 2008 financial crisis two weeks before the end of the year. “We actually experienced a financial shock comparable to that of 2008, just for different reasons,” said Huw Roberts, an analyst at Quant Insight in London. The theme for the year has been the tug-of-war between inflation and the Fed’s policy response. “Markets welcomed any hint of smaller rate hikes, only to be crushed by monetary tightening.”
Concerns about interest rates and the economy again weighed on US government bonds. The yield of ten-year bonds rose to 3.588 percent from 3.482 percent the previous day. The papers from Apple, Microsoft and the Google parent alphabet were correspondingly down by up to 2.1 percent. According to experts, rising inflation and higher interest rates will devalue the future profits of these high-growth companies. Meanwhile, the prospect of a revival in demand as China eased corona restrictions pushed up the price of US-grade crude oil STI by 1.8 percent to $75.64 per barrel (159 liters).
The announcement by the US Department of Energy on Friday that it would start buying back crude oil for the strategic oil reserve for delivery in February next year also provided positive impetus. The rebound in oil prices made investors turn to shares in the energy sector. The titles of Exxon Mobile and chevrons increased by up to 0.4 respectively.
In the case of the individual values, an antitrust law accusation by the European Commission set in Meta-Shares too. The papers of the Facebook mother fell by almost four percent to $ 114.54. According to the Commission, the US group distorts competition in the online classifieds markets. If this is confirmed in an investigation, she could impose a fine of up to ten percent of the company’s worldwide annual turnover.
Teslashares lost 0.2 percent, but held up better than the overall market. The share reacted to the outcome of a survey among Twitter users as to whether Elon Musk should vacate the executive chair of the social media platform. 57.5 percent of the poll’s participants believe Musk should resign – a vote Musk says he wants to respect. A resignation as Twitter CEO would allow Musk to return to his duties as Tesla CEO.
In addition, the “Avatar” sequel “The Way of Water” missed the expected number of admissions on the first cinema weekend and thus depressed Walt Disney. The entertainment company’s titles fell 4.9 percent to $85.68. The film, directed by James Cameron, grossed $435 million in its first weekend in theaters versus the expected $500 million. According to Cameron, at least two billion dollars would have to be brought in to cover the costs of the film production.