The Nasdaq Composite advanced 0.5% to close at 15,704.28. The tech-heavy Nasdaq rebounded on November 11 after hot inflation data and surging bond yields sparked a sell-off in technology stocks in the previous session.
On November 11, the S&P 500 closed marginally higher at 4,649.27. However, the Dow Jones Industrial Average was not so lucky. It dropped 158.71 points or 0.4% to 35,921.23 due to Disney’s results.
Some tech companies jumped on November 11 after October’s consumer price index reading pushed up bond yields one day earlier. The surge in growth rates pressured growth pockets of the equity market. Nvidia gained 3.2%, and AMD advanced 4.4%.
Importantly, shares of commodity producers in the S&P 500 gained as investors bet on sustained inflation. The Materials Select SPDR Fund reached a fresh intraday all-time high. Shares of Mining company Freeport-McMoRan ran up 9%, and steel producer Nucor gained 2.7%.
Shares of Disney dropped after the media giant missed the top and bottom lines of its quarterly results. The company’s average revenue per subscriber declined in recent quarters because of the lower price points for its Disney+ and Hotstar bundle in India and Indonesia.
The company added more than 2 million subscribers, more precisely 2.1 million, to reach a total of 118.1 million. In total, the company reported 179 million subscribers across Disney+, ESPN+, and Hulu at the end of the fourth quarter.
Still, Wall Street was more bullish than Disney’s CEO Bob Chapek heading into earnings. StreetAccount estimated Disney would report 125.4 million total Disney+ subscribers as of the fourth quarter. Bob Chapek discussed the company’s goal during Disney’s earnings call. He reiterated that the company’s goal is to reach between 230 million to 260 million Disney+ subscribers by 2024.
U.S. stocks and consumer price index
U.S. stocks fell two days ago, on November 10. After October’s consumer price index reading, stocks suffered losses and showed the most significant annual jump in more than 30 years.
The Dow Jones Industrial Average dropped 240.04 points or about 0.7%, to close at 36,079.94. Meantime, the S&P 500 declined 0.8% to 4,646.71. The Nasdaq Composite fell nearly 1.7% to close at 15,622.71 on November 10.
Also, following the data stated above, traders in the futures markets moved up their expectations for the Federal Reserve interest rate hike to July from September.