Stock Market Today: Disney's Magic Brightens Directionless Day for Stocks
Disney (DIS) popped to all-time highs Friday following a bombshell-filled investor day event, while the rest of the market treaded water.
The stock market wobbled its way to the finish line Friday as investors continued to weigh ongoing vaccine progress against Washington's inability to reach agreement on much-needed fiscal stimulus. But Walt Disney (DIS, +13.6%) provided Wall Street with something to get excited about.
A Food and Drug Administration panel on Thursday recommended the Pfizer (PFE, -1.5%)-BioNTech (BNTX, -1.7%) COVID vaccine for an Emergency Use Authorization and conditional FDA approval is expected within days, if not hours. However, progress was lacking on a Congressional deal to extend unemployment benefits and other lifelines, reducing the likelihood of a sizable package, if any.
"While the market seems to be already pricing in stimulus expectations, I fear reality might disappoint overly optimistic investors who are betting on another multi-trillion dollar stimulus package," says Nancy Davis, founder of Quadratic Capital Management.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow Jones Industrial Average finished up a slight 0.2% to 30,046, while the S&P 500 (-0.1% to 3,663) and Nasdaq Composite (-0.2% to 12,377) closed in the red.
"The current surge in COVID-19 cases and the likelihood of failed fiscal support from Washington ought to generate more concern than we've been seeing," says Scott Brown, chief economist at Raymond James. "We were lucky that 2020 was an election year. Post-election, fiscal support has become difficult."
Other action in the market today:
- The small-cap Russell 2000 declined 0.6% to 1,911.
- U.S. crude oil futures declined by 0.5% to $46.57 per barrel.
- Gold futures improved by 0.3%, settling at $1,843.60 per ounce.
Disney's Big Day
Friday was plenty interesting from a single-company perspective, however.
For instance, Abbott Laboratories (ABT, +0.5%) – a Dividend Aristocrat that produced double-digit payout growth last year – made its 49th consecutive payout hike a big one, approving a 25% raise to 45 cents per share.
Meanwhile, China's Nio (NIO, -7.2%) became the latest electric vehicle stock to leverage its good fortune in 2021 – the company said Thursday it would raise funds by selling up to 69 million additional shares following a roughly 1,020% share-price explosion through yesterday's close. That comes just days after Tesla (TSLA, -2.7%), up 625% year-to-date, announced its second $5 billion stock offering in the past three months.
But the day's biggest fireworks came from Disney, which has fully turned around its dreadful 2020 by hitting all-time highs Friday on the back of several announcements.
More than a dozen analysts upgraded the stock after its investor day event, during which it revealed a slew of new series and movies, including many centered around its Star Wars and Marvel franchises, and a $1-per-month price hike of its Disney+ service, which has piled up an astounding 86.8 million subscribers in just one year.
"Streaming content was way above expectations with 100+ new original TV series and films coming to Disney+ the next few years (including 10 Marvel, 10 Star Wars, and 15 Disney/Pixar series and 15 Disney/Pixar films)," say Credit Suisse analysts, who rate DIS at Outperform (equivalent of Buy) and called Disney's streaming efforts "impressive."
"While consumers should maintain their Netflix subscriptions," they add, "Disney will probably increasingly be seen as a streaming investment alternative to Netflix and the debate as to streaming fatigue remains (will other services get squeezed out?)."
That sets a strong tone for what could be an even more productive 2021 – and it's not alone. Disney is just one of several stocks in the communication services sector that have a promising outlook heading into the new year.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Six Ways Women Can Overcome Any Financial Obstacles Holding Them Back
To improve your financial situation, focus on empowering yourself first.
By Kiplinger Advisor Collective Published
-
Should You Enroll in Medicare if You Still Have a Job?
This question is being asked more than ever these days, so here’s what you can do when it comes to making Medicare decisions while you’re still working.
By Jae W. Oh Published
-
Stock Market Today: Dow Outperforms as Merck Hits New High
The S&P 500 and Dow Jones Industrial Average snapped three-day losing streaks as drugmaker Merck rallied.
By Karee Venema Published
-
Stock Market Today: S&P 500, Dow Extend Losing Streaks
Reddit stock continued to charge higher and has now nearly doubled in price since last week's IPO.
By Karee Venema Published
-
Stock Market Today: Bitcoin, Boeing Shine as Stocks Slip
Digital World Acquisition sizzled, too, ahead of its merger with Trump Media & Technology Group.
By Karee Venema Published
-
Fiscal Year Definition: What Every Investor Should Know
A fiscal year has uses for financial reporting. Here's why it's an important concept for investors to be aware of.
By Will Ashworth Published
-
Stock Market Today: Dow Retreats After Nike Earnings
The Nasdaq Composite managed to notch a new record close Friday, building on the week's impressive gains.
By Karee Venema Published
-
Stock Market Today: Stocks Hit New Highs as Rate-Cut Momentum Continues
Reddit sizzled in its market debut, while Apple slumped after the tech giant was slapped with an antitrust lawsuit.
By Karee Venema Published
-
Stock Market Today: Stocks Climb After Fed Forecasts Three Rate Cuts This Year
The main indexes notched new record closes Wednesday after the Federal Reserve kept its outlook for rate cuts unchanged.
By Karee Venema Published
-
Stock Market Today: Stocks Close Higher After Nvidia's Reversal
The main indexes erased early losses Tuesday as mega-cap tech stock Nvidia swung higher.
By Karee Venema Published