MarketBites: Red Sky At Night, Investor's Delight
Portfolio Manager Commentary:
Wednesday’s rally did not carry over to Thursday's trading session. Only the Dow finished in the green, up 0.08%. Meanwhile, the S&P closed down 0.07% and the Nasdaq trailed further down (0.58%). Energy stocks performed the best overall. The sector was able to post a 3% gain as oil and natural gas prices climbed on the day. Bank stocks also performed well.
Even though Wednesday's inflation report sparked enthusiasm, it does not change the fact that the Fed will likely continue hiking rates. Investors' weariness Thursday was likely due to a mixture of these rate hike expectations as well as a necessary breather after such a strong uptick. Still, investor sentiment is much better now than it was two months ago.
On another note, Walt Disney ($DIS) shares posted a 4.68% increase on the day after posting a 28% yearly revenue increase. Also, with more than 221 million subscribers, Disney's streaming services (Disney,+, Hotstar, Hulu, and ESPN+) now have more subscribers than Netflix, which recently reported slightly under 221 million subscribers.
Chart of the Day:
Mortgage rates have climbed back above 5%, indicating little relief for borrowers. Although these rates remain below this year’s earlier highs, they are well above the sub-3% rates we saw throughout last year.