Jarden Brief: Disney down after Mickey Mouse profit performance

Cord-cutting and streaming losses are no laughing matter for the company behind Donald Duck. Photo / Supplied

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

International

US

US markets were in the red at the time of writing as US midterm election results rolled in and control of the Congress remained unclear.

The S&P 500 was down 0.9 per cent, the Nasdaq Composite was 1.2 per cent lower and the Dow Jones Industrial Average declined 1.0 per cent.

Meta Platforms was a top performer, climbing 6.8 per cent. It announced it was conducting mass lay-offs to reduce staff numbers by 13 per cent. It has cut discretionary spending and has extended its hiring freeze. Investors appear to have reacted favourably to these cost-cutting measures.

Walt Disney Co declined 12.6 per cent to a new 52-week low, following the release of its full year and quarterly results in after-hours trading.

Cord-cutting and streaming losses came in worse than expected as Disney fell short of expectations for profit in key revenue segments during the fiscal fourth quarter.

Mass media and entertainment business Paramount Global fell 5.8 per cent on no apparent news.

This could be a symptom of entertainment market sentiment from Walt Disney impacting Paramount following Disney's result release.

Rest of the World

European stocks closed lower with eyes on the US midterms. The European Stoxx 600 index fell 0.3 per cent and the FTSE was down 0.1 per cent.

Asian markets were mixed as investors digested incoming results of the US midterm Elections and China's October Producer Price Index fell for the first time since December 2020.

The Hang Seng declined 1.2 per cent, the Shanghai Composite fell 0.5 per cent and the Nikkei declined 0.6 per cent.

Commodities

Brent Oil is currently trading 2.2 per cent lower at US$93.30 a barrel on US inventory build up and China demand concerns, while gold is trading 0.1 per cent lower to US$1,711.30 per ounce.

The US 10-year Treasury bond is down 0.3 per cent to a yield of 4.11 per cent.

Bitcoin has fallen to its lowest level in almost two years, slumping 9.5 per cent to US$16,903.00.

New Zealand

The NZX 50 declined 0.1 per cent yesterday led downwards by utilities and real estate, falling 1.5 and 0.7 per cent, respectively.

Utility company Manawa Energy, formerly Trustpower, fell 8.7 in the wake of reporting its interim results for the 2023 financial year. Earnings before interest, tax, depreciation and amortisation came in at NZ$73 million for the first half and Manawa announced an interim dividend of NZ 7.5 cents per share.

Pushpay Holdings also released its interim financial year 2023 results, with operating revenue up 10 per cent year on year while net profit after tax declined 54 per cent. Pushpay rose 0.8 per cent.

Vista Group International flagged that the group company Movio announced the launch of its latest software as a service product, Movio Cinema EQ, "providing greater opportunities for cinemas to improve the way they market movies to moviegoers". Vista fell 3.9 per cent yesterday.

Fonterra appointed Neil Beaumont as its chief financial officer effective from February next year. Fonterra Shareholders' Fund rose 1.0 per cent yesterday.

The average value of New Zealand homes is down $113,000 so far this year, and almost $200,000 in Auckland and Wellington according to the QV House Price Index.

The biggest declines were in the Wellington region down $198,000 (-18 per cent) and Auckland falling $193,000 (-12 per cent).

Statistics NZ retail card spending was released. Total electronic card spending rose $88 million, up 1 per cent, in the month of October.

It is the first month since May where spending has increased across all categories, predominantly propped up by durables and consumables spending.

Australia

The ASX 200 traded up 0.6 per cent, advancing for a fourth straight session on Wednesday.

Mining stocks led gains as iron ore prices rose on hopes of China easing Covid-19 restrictions, and gold prices strengthened on Wednesday. The basic materials sector rose 2.4 per cent.

The top performers of the ASX 200 were flushed with Australian gold stocks – St Barbara rose 13 per cent, Regis Resources gained 12.7 per cent, De Grey Mining was up 9.4 per cent, Evolution Mining rose 9.3 per cent, Perseus Mining increased 9.0 per cent and Capricorn Metals gained 8.9 per cent.

Medibank Private announced customer data stolen by hackers had been posted on a dark web forum. Shares declined a slim 0.4 per cent which may indicate the market had already priced in this shock in the weeks following the initial cyber attack.

News Corp led the decliners, losing 11.2 per cent, after reporting a 15 per cent decline in earnings for the quarter ended September, and a 1 per cent fall in revenue, citing earnings impact from the strong US dollar.

Coming up today

Locally, Mainfreight and Goodman Property Trust release first half earnings, and Fonterra has its AGM.

Australia has an array of earnings releases and AGMs: Xero first half earnings, BHP AGM, Amcor AGM, REA Group AGM, Computershare AGM, Ansell AGM, Insignia Financial AGM, Nine Entertainment AGM, Breville Group AGM. Further afield, eyes are on the US CPI and Initial Jobless Claims.

• For more information on the latest market moves, get in touch with Jarden.

All market pricing and announcements are sourced from Refinitiv, NZX and ASX.

The Jarden Brief is provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation.  We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission.  The Jarden Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm.  A financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/. Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer