Here are some big news for investors starting their day:
1. Winning Streak
The S&P 500 just had its longest winning streak in two years. On Wednesday, it went up by a small 0.1%, marking eight consecutive positive days. The last time this happened was in November 2021. The Nasdaq Composite had a slight 0.08% increase for the day, making it its longest winning streak in two years as well, with nine positive days.
However, the Dow didn’t join the party and fell in Wednesday’s trading, ending its best winning streak since July. There’s a chance it might get a boost from Disney on Thursday, as it’s up nearly 4% in premarket trading.
2. Disney’s Winning Move
Disney, earnings for the fourth quarter surpassed expectations when they were released after the market closed on Wednesday. However, the revenue didn’t quite meet the mark. The entertainment giant noted a drop in ad revenue, mainly from Disney’s ABC Network and other TV stations it owns.
To manage this, Disney plans to increase its cost-cutting efforts by an additional $2 billion. On a positive note, ESPN stood out as a bright spot. This quarter marked the first time Disney broke down its divisions into entertainment, sports, and experiences. ESPN, categorized under sports, experienced a rise in both revenue and operating income.
CEO Bob Iger expressed optimism about ESPN’s performance, mentioning its strong trajectory and impressive ratings. According to Iger, ESPN had one of its best years in terms of ratings in 2023, making it a significant achievement.
3. Strike Resolved
The Hollywood actors’ strike officially ended early Thursday morning. The actors’ union and studios have reached a preliminary labor agreement that is set to revive the industry. The Screen Actors Guild-American Federation of Television and Radio Artists, representing the actors, went on strike 118 days ago in mid-July.
Their demands included better wages, improved working conditions, and enhanced health and pension benefits. Additionally, they sought stricter safeguards for the use of artificial intelligence in upcoming television and film productions.
4. Arm’s Debut Earnings
Arm, which recently went public in September, has shared its first earnings report since the IPO. The semiconductor technology company exceeded Wall Street’s sales expectations, and its profitable licensing business saw a doubling in the past year.
However, despite these positive results, Arm’s projected revenue fell short of expectations, leading to a 5% drop in its stock during premarket trading. Arm anticipates earnings per share ranging from 21 cents to 28 cents, with sales expected to be between $720 million and $800 million in the current quarter.
This forecast was slightly below what Wall Street had anticipated: 27 cents per share on revenue in the range of $730 million to $805 million.
5. GOP Discussion
In Miami, five Republicans gathered for the third GOP presidential debate. Notably absent, for the third time, was former President Donald Trump, a prominent figure in the upcoming 2024 election.
The participants on stage included Florida Gov. Ron DeSantis, former United Nations Ambassador Nikki Haley, former New Jersey Gov.Chris Christie, entrepreneur Vivek Ramaswamy, and South Carolina Sen. Tim Scott.
The candidates expressed differing views on abortion, a significant topic given the recent elections where abortion rights efforts achieved significant victories. Nikki Haley’s stance on abortion appeared more moderate compared to her fellow candidates. The debate also covered topics such as TikTok, Israel and Hamas, and Warren Buffett.
Summary
Stock markets had good days, Disney did well but had some financial challenges, Hollywood actors ended their strike, Arm’s first earnings were a mix of good and not-so-good news, and the GOP debate had key candidates discussing various important topics.
