Financial news headlines from November 9, 2023:
- Stocks Snap Winning Streak as Treasury Yields Surge
U.S. stocks closed lower on Thursday, snapping the S&P 500 and Nasdaq’s longest winning streaks in two years, as Treasury yields jumped. The Nasdaq Composite closed 0.9% lower, while the S&P 500 fell 0.8% and the Dow Jones Industrial Average lost 0.7%.
The sell-off came after the benchmark 10-year Treasury yield rose above 4.6% for the first time since May. The yield on the 2-year Treasury note also climbed, to 4.4%.
Higher yields make stocks less attractive to investors, as they can earn more by investing in bonds. The increase in yields comes as investors assess the Federal Reserve’s path of interest rate hikes.
- Disney Stock Rallies After Reporting Forecast-Beating Earnings and $2 Billion of Cost Cuts
Shares of Walt Disney Co. (DIS) rose 4.4% on Thursday after the entertainment giant reported forecast-beating earnings and announced $2 billion of cost cuts.
Disney said it earned $1.56 per share in the fourth quarter, excluding certain items, compared with analysts’ expectations of $1.47 per share. Revenue rose 8% to $20.2 billion.
The company also announced plans to cut $2 billion in costs over the next two years, as it looks to offset the impact of higher inflation and streaming investments.
- Oil Rises as IEA Sees Stronger Demand Despite Economic Headwinds
Brent crude oil rose 1.6% to $84.53 a barrel on Thursday, after the International Energy Agency (IEA) raised its forecast for global oil demand in 2023.
The IEA said it now expects global oil demand to average 99.9 million barrels per day (bpd) in 2023, up from its previous forecast of 99.4 million bpd. The increase is due to stronger-than-expected demand from China and India.
However, the IEA warned that the outlook for oil demand is still uncertain due to economic headwinds, including rising interest rates and the war in Ukraine.
Other notable financial news from November 9, 2023:
- S&P Global Ratings downgrades outlook on China to negative
- Eurozone inflation falls to 10.7% in October
- Japan’s trade deficit widens to record 1.9 trillion yen in October