Marketbites: Disney World Feeling Empty
Portfolio Manager Commentary:
The Dow Jones Average rose Monday as Wall Street tried to recover from a losing week. The positive reversal came as investors prepared for inflation data later in the week and braced for the start of the second-quarter earnings season. The consumer price index report is due Wednesday, followed by the producer price index on Thursday.
Last week, the S&P 500 pulled back 1.16%, while the Nasdaq Composite and Dow fell 0.92% and 1.96%, respectively. Despite nonfarm payrolls growing less than expected in June, slightly stronger-than-expected wage growth raised concern over the potential for more Federal Reserve rate hikes. That said, Fundstrat’s Tom Lee sees the inflation report coming in lighter than expected, which could spark a rally.
Investors also have a slew of quarterly reports to consider this week. Finance giants BlackRock, JPMorgan Chase, Wells Fargo, and Citigroup will all report and kick off the second-quarter earnings season.
Chart of the Day:
Disney World hasn't felt this empty in years as shorter wait times for rides and more discount offers are signs of thinning crowds at the theme parks. Data from a travel company that tracks line-waiting time at Walt Disney World in Orlando, Fla., shows that the Independence Day weekend was one of the slowest in nearly a decade. Travel advisers and industry analysts say the slowdown is the latest sign that Disney’s recent price hikes and changes to park operations have soured some families on visiting the destination.
Disney faces a unique set of challenges right now, from streaming losses to executive succession to a political and legal fight with Florida Gov. Ron DeSantis. Revenue from its parks division has long been a bright spot for the company, buoying overall earnings. Disney declined to comment on recent attendance.
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