Markets summary and Disney’s streaming future

Maltese markets erased their previous gain and closed lower on Tuesday with the MSE Equity Total Return Index moving 0.058% lower to 9,841.07 points. At the pinnacle of all equities stood MIDI p.l.c. with a gain of 7.69% to close at €0.70. FIMBank p.l.c. followed closely with a positive change of 6.15% to $0.69. Malta International Airport Plc meanwhile lost 3.23% to close at €7.50.

US markets also bounced back from Monday’s drop that rocked Wall Street. The Dow Jones Industrial Average gained 311.78 points, or 1.2%, to end at 26,029.52, while the S&P 500 index rose 37.03 points, or 1.3%, to close at 2.881.77. The Nasdaq Composite Index jumped 107.23 points, or 1.4%, to finish the session at 7,833.27.

European markets turned lower and erased earlier gains late into the session as trade tensions continued to disrupt investor appetite. The pan-European stocks benchmark STOXX 600 index closed 0.5% lower after initially reaching a 0.7% gain. The London’s FTSE 100 index which includes many miners and commodity-focused firms which are worryingly exposed to Chinese demand, fell 0.7%. British maker Rolls Royce plc followed with its 6.9% decline as it raised its cost estimates.

Disney’s earnings forecasts and streaming future

Walt Disney Co announced a greater than expected decline in earnings. Disney started funding its ambitious plan to streaming media and folding in assets purchased from Twenty-First Century Fox. Shares of Disney, which had reached a high of 27% this year and hit an all-time high last week, dropped as much as 5% in after-hours trading to $135. Besides, Disney earned $1.35 per share for the quarter closing in June. This was below the $1.75 per share average which was expected by analysts.

The reason Disney is investing heavily in digital media platforms is to challenge the dominance of Netflix. Disney+, a family-friendly subscription service, is set to debut in November. 

Due to this, costs piled up and they are expecting an approximate operating loss of $900m. However, Chief Executive Bob Iger, stated that ‘’we remain confident in our strategy and our ability to successfully execute it’’.
 

This article was issued by Peter Petrov, junior trader at Calamatta Cuschieri. For more information visit, https://cc.com.mt/. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.