The major stock market indexes fell Monday morning and are trading just above the lows of the day, heading into the lunch hour. Dow Jones component Walt Disney booted CEO Bob Chapek after the streaming service lost more than a billion dollars in the latest quarter.
The S&P 500 shed 0.6% while the Nasdaq gave back 1.1%. The Dow Jones Industrial Average edged down 0.3%. The Russell 2000 small-cap index trimmed 0.9%.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF pulled back 1.1%.
Volume on the NYSE and Nasdaq was higher vs. the same time on Friday. This is a holiday-shortened week so expect volume to contract as folks head out to see families and friends.
Crude oil lost dumped 1.4% to $79.01 per barrel after Saudi Arabia proposed that OPEC increase production by 500,000 barrels. It's probably not a coincidence the Biden administration just backed immunity for the Saudi leader in the Khashoggi murder.
The Energy Select Sector SPDR ETF fell 2.3%.
Natural gas bucked the downward tide, gaining 6.8%. It is trading above $6 per million British thermal units.
The 10-year Treasury note yield shed one basis point to 3.82%. Bitcoin was down 3.6% to $15,930.
European markets were down, with the German DAX losing 0.4% and the Paris CAC 40 0.2%. The London FTSE 100 trimmed 0.1% in afternoon trading.
Odds for 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. The Fed's Raphael Bostic (non-voting member) said he favors slowing down rate hikes and believes 75 to 100 additional basis points are needed to tamp down inflation.
Retailers set to post earnings Tuesday include Best Buy, Nordstrom, Dollar Tree and Dick's Sporting Goods.
Chinese stocks fell as rising illnesses undermined hopes the Asian nation will abandon their zero Covid policy. A continued China economic slowdown will weigh on the global economy.
Disney Shocks Investors With Chapek Boot
Walt Disney rallied 6.2% in today's stock market on surprise news that former Chairman and CEO Bob Iger will take back the CEO position, effective immediately. Bob Chapek replaced Iger in February 2020 but has struggled during his tenure.
The theme park and media giant reported worse-than-expected fiscal Q4 losses in the Disney+, Hulu, and ESPN Now streaming services, losing twice more money than one year ago.
Profit objectives have not panned out as expected, generating more than $8 billion in losses since the Disney+ service started in November 2019. While Disney+ boasted 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 S&P 500 and Dow Jones leader today.
Funds own 30% of DIS stock but have been unloading shares. 3,920 owned it in September, down from 3,965 in June and 3,999 in March.
Netflix was down 0.9% in light volume, reacting to the Disney news. Netflix stock is finding support at its 21-day exponential moving average.
Ryan Cohen has been adding shares as he feels the leading streaming company is undervalued after a huge sell-off this year.
Tesla At Two Year Low; Crypto Exchange Stock Drops
Tesla plummeted more than 5% as investors hit the exits, worried that CEO Elon Musk's Twitter troubles will spread like a contagion into EV sales. The stock fell to a two-year low and is now down more than 58% since the all-time high at 414, posted in Nov. 4, 2021.
Crypto exchange Coinbase plummeted 7.6% as bitcoin pulled back on the heels of the FTX crypto exchange collapse. FTX filled for bankruptcy earlier in the month.
The fallout of FTX has bitcoin traders wondering about the viability of the whole digital currency environment. Shares of COIN are down about 88% off its 52-week high. The stock started trading on Apr. 14, 2021.
Domino's Pizza rose 2.5% on news it will employ 800 GM Chevy Bolt electric vehicles in its delivery fleet. The first 100 are scheduled to arrive in November, with the remaining 700 in future months. The company cites lower maintenance costs, gas expense savings and advanced safety features as benefits for adding the EVs.
Domino's stock is finding support at its 200-day moving average.
Alibaba was down 4.7%, Pindouduo shed 3.6% and NIO plunged 4.4% on the China news.
Dell Technologies fell 4.3% and Zoom Technologies lost 1.3%, ahead Q3 earnings releases scheduled after the close.
J.M. Smucker clawed back, up 1% after reporting a beat on Q3 2023 top and bottom lines. The company also raised its fiscal 2023 EPS and net sales growth.
Shares are in the 5% buy zone of a cup-with-handle base, with a buy point of 145.00.
Stock Market Today: IBD 50 Movers
The Innovator IBD 50 ETF lost 2%, faring worse than the major stock market indexes.
Shoals Technologies gace back earlier gains, down 0.7%, and extended from a 5% buy zone of a choppy base with 28.57 buy point.
Earthstone Energy shed another 9.4% and trading below its 21-day line.
Daqo New Energy dropped 2.3% with other Chinese stocks.
