The S&P500 has managed to extend its winning streak to 8 consecutive days, with the Nasdaq Composite also experiencing a prolonged streak of 9 positive days. Investors eagerly awaited the release of Disney’s fourth-quarter earnings, and received mixed results. Unfortunate loss of ad revenue on Disney’s ABC Network and other owned TV stations was counterbalanced by a strong performance from ESPN. In Labor news, after a 118 day strike, the actors’ union and the studios have signed a favorable preliminary agreement that will return the movie industry back to life. In the tech sector, semiconductor company Arm announced its first earnings since its IPO, beating sales expectations but falling short in revenue guidance. Though Arm’s stock fell 5% in pre-market trading, CEO Rene Hass remains optimistic about the company’s future.
The Labor agreement is particularly positive news for Hollywood and the movie industry, which has been hampered by an extended strike by the Screen Actors Guild-American Federation of Television & Radio Artists. The situation is now on the pathway to resolution, promising a steady stream of movies and shows in the coming months. In the tech sector, investors were keen to see the results of semiconductor company Arm’s first earnings report. While sales have exceeded expectations, the stock price has dipped due to lower than expected revenue guidance. On the political front, the third Republican presidential debate took place in Miami, with former President Donald Trump notably skipping the event. Five other potential candidates used the platform to discuss topics such as abortion, TikTok, Israel and Hamas, and Warren Buffet, setting the stage for the upcoming 2024 election.
The entertainment giant Disney reported its earnings for the fourth quarter. Although revenue fell short of expectations, ESPN emerged as a bright spot. In a groundbreaking move, Bob Iger, Disney CEO, expressed a positive outlook for ESPN in an interview with CNBC. The tentative labor agreement between actors and studios is a welcome development for the movie industry, providing potential for growth and recovery after the long-standing strike. Arm, in its first earnings report since its IPO, outperformed in sales despite underwhelming revenue guidance, leaving investors cautiously optimistic about the company’s future stock trajectory.
