Stock Market Slips, and Disney Gets the Blame

Company lost streaming subscribers, which worries analysts
By Newser Editors and Wire Services
Posted May 11, 2023 3:15 PM CDT
Stock Market Slips, and Disney Gets the Blame
The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange in this file photo.   (AP Photo/Richard Drew, File)

Wall Street slipped on Thursday, weighed down by a sharp drop for the Walt Disney Co. and flaring fears about the health of some US banks.

  • The Dow fell 221 points, or 0.6%, to 33,309.
  • The S&P 500 fell 7 points, or 0.1%, to 4,130.
  • The tech-centric Nasdaq gained 22 points, or 0.1%, to 12,328.

Disney was one of the heaviest forces dragging on the market. It dropped 8.7% after it said it lost streaming subscribers in the US and Canada last quarter, surprising analysts. That was despite its earnings and revenue for the latest quarter roughly matching Wall Street’s forecasts. Meanwhile, some banks beaten down by the industry’s mini-panic were also under heavy pressure again. PacWest Bancorp dropped 22.2% after saying it saw 9.5% of its deposits leave last week. The majority of the flight occurred in two days after news reports said the bank was talking with potential investors and partners, raising worries for its customers.

Also falling was Peloton Interactive, which dropped 7.9% after it announced a safety recall on 2.2 million of its exercise bikes. Helping to offer some support for the overall market was a report that showed inflation at the wholesale level was a bit cooler last month than economists expected. It followed a report from the prior day that showed inflation at the consumer level was also behaving largely as forecast. The reports bolstered expectations on Wall Street that the Federal Reserve will hold off on hiking interest rates again at its next meeting in June. That would be the first time that’s happened in more than a year.

(More stock market stories.)

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