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    • Disney moves closer to Wall Street records as it rises
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    Disney moves closer to Wall Street records as it rises

    Harry Posted on

    Stan Choe
    | Associated Press

    new York – US stocks are surging on Thursday as the market boom following the election of Donald Trump continues to cool.

    The S&P 500 was virtually unchanged in early trading and remains near the all-time high it hit on Monday. The Dow Jones Industrial Average was up 41 points, or 0.1%, as of 9:50 a.m. Eastern time, and the Nasdaq composite was down 0.2%.

    Walt Disney Co. led the market with a 10.6% increase after the entertainment giant reported stronger profits than analysts expected in its latest quarter. Disney CEO Robert Iger noted rising profits at its streaming business and strong box office results for its films, including “Inside Out 2” and “Deadpool & Wolverine,” among other things.

    ASML, one of the important suppliers of the global chip industry, also gave encouraging signals for technology stocks. The Dutch company said it expects global semiconductor sales to exceed $1 trillion by 2030, helped by demand driven by artificial intelligence technology, and stands by its long-term financial forecasts. ASML shares traded in the U.S. rose 4.9%.

    But Cisco Systems’ 1.3 percent decline helped keep the indexes in check, even though the tech giant reported stronger profits than analysts expected in the last quarter. Analysts suggested that investors may be looking for this move to further raise their financial forecasts.

    Super Micro Computer, one of the biggest winners of the AI ​​boom, had the worst loss in the S&P 500, falling 13.4%. The company said Wednesday that it does not expect to file its quarterly financial statements with U.S. regulators on time. .

    The server maker’s shares have been struggling lately, especially after Ernst & Young resigned from the public accounting firm. A special committee of the company’s board has since said there was “no evidence of fraud or misconduct on the part of management or the Board.”

    Tapestry shares rose 11.4% after the luxury fashion company announced that it had finalized its merger with another luxury brand owner, Capri. The companies agreed to an $8.5 billion deal in August 2023 to combine the Coach and Michael Kors bag makers, but the merger has faced numerous challenges, including a Federal Trade Commission lawsuit to block the deal on antitrust grounds .

    Capri shares fell 3.2%.

    Following the last update on inflation, the effects of fluctuations in the bond market were also felt in stocks. Prices paid at the U.S. wholesale level were 2.4% higher in October than a year earlier. That was an acceleration from the 1.9% inflation rate in September and a worse jump than economists had expected.

    Meanwhile, a separate report suggested that the U.S. job market remains solid. Fewer US workers applied for unemployment benefits last week, in the latest sign that layoffs have not begun.

    Treasury yields initially jumped following the reports, as investors slightly tempered their expectations that the Fed would cut interest rates at its meeting next month. But yields later retreated, with the yield on the 10-year Treasury note falling from 4.45% to 4.42% at the end of Wednesday.

    The Fed began cutting interest rates from a two-decade high in September to provide support for the job market, hoping the labor market will stay humming after reducing inflation to nearly its 2% target. Previous forecasts released by the Fed implied that it might continue to cut interest rates throughout next year.

    But Trump’s victory may have disrupted such plans. Economists say Trump’s preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, as well as faster economic growth.

    While low interest rates can stimulate the economy and investment prices, they can also further fuel inflation. Expectations of low interest rates were a major reason for the S&P 500’s massive jump of more than 20% for the year so far, as well as hopes that the U.S. economy can continue growing and avoid a long-awaited recession.

    European indices rose in stock markets abroad; This includes a 1.4% rise in the German DAX. Meanwhile, Asian markets were mixed. Hong Kong’s Hang Seng index fell 2%, but South Korea’s Kospi index rose 0.1%.

    In the crypto market, Bitcoin rose roughly 1% to $90,916 after surging above $93,000 as cryptocurrencies rose overall. Trump embraced cryptocurrencies, promising to make the United States the crypto capital of the world.

    ___

    AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

    Harry
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