Spreadex Market Update
Disney leads Dow Jones lower whilst NIESR sees UK growth at 0.3% for 3 months to April
The Dow dropped by 90 points after the bell, a chunk of which was caused by Walt Disney’s 4.5% fall following the company’s Q2 figures yesterday evening. Coming days after its latest Marvel-ous success, ‘Captain America: Civil War’, Disney missed analysts’ earnings estimates for the first time in 5 years, posting EPS of $1.36 against the $1.40 forecast. Revenue also missed Wall Street’s target, a 4% rise to $12.97 billion shy of the $13.19 billion anticipated. As has been the case for a while now Disney is seeing an internal battle between its stellar film division (its ‘Star Wars’ and ‘Zootopia’-boosted receipts jumping 22% to $2.1 billion) and its creaky cable networks business (where revenue slipped by around 1.9% to $3.96 billion largely thanks to a fall in ESPN subscriptions). The sour cherry on top was the closure of is ‘Disney Infinity’ video games wing, something that cost the company $147 million.
The FTSE somehow managed to avoid the losses seen by its peers this Wednesday, despite a string of negative data. Joining the morning’s worrying manufacturing sector diagnosis was NIESR’s claim that the UK economy grew by a meagre 0.3% in the 3 months to April. That could see a downwards revision to the ONS-announced first quarter figure when the second estimate is revealed at the end of May, and points to the continued negative effects of the pre-EU referendum uncertainty.
Over in the Eurozone the DAX and CAC both continued to fall by around 0.5%, and were lucky to avoid a sharper set of declines given the state of the Italian banking sector. With Banco Popolare posting a first quarter loss and Banco Popolare di Milano seeing its profits slip the Italian FTSE MIB fell by over 2%, making it the day’s worst performer.
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