Marketbites: U.S. Films Losing Steam in China
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks were mixed Friday as traders assessed the latest corporate earnings results, and the Dow Jones Industrial Average stretched its winning streak to 10 sessions. The Dow narrowly notched its tenth straight day of gains, a feat not seen for the index since August 2017. On a weekly basis, the S&P 500 added 0.69%, while the Dow gained 2.08%. It was the second positive week in a row for the two indexes. The Nasdaq fell 0.57% for the period.
Trading was volatile Friday as portfolio managers recalibrate their funds to account for an unusual Nasdaq-100 rebalance taking effect Monday. A large volume of index and stock options are also expiring Friday. Traders were still eyeing more corporate earnings after a busy week of quarterly results. Transportation giant CSX fell 3.7% on the back of underwhelming results. American Express, meanwhile, dropped 3.8%.
″...Overall, early Q2 results appear good enough for equity markets to grind higher for now,” Barclays analyst Emmanuel Cau wrote in a Friday note. “Next week will be more indicative of the broad earnings dynamics, with ~50% of market cap reporting.”
Chart of the Day:
Total box-office sales for U.S. films in China hit $592 million in the first six months of the year, down from $1.9 billion grossed in the first half of 2019, according to Artisan Gateway, the year before Covid-19 restrictions crippled moviegoing. Two U.S. movies cracked the top 10 in China in 2021 and again in 2022, but only one has so far this year. That is a marked change from 2014 to 2018, when U.S. films accounted for at least three of the top 10 releases in China each year, twice accounting for five of the 10.
Source: WSJ
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