Disney Earnings Boost US Stock Futures Ahead of Inflation Report
US stock futures saw a boost on Thursday, thanks to positive earnings from entertainment giant Disney and anticipation surrounding the forthcoming inflation report. By 06:30 ET (10:30 GMT), Dow futures were up 155 points, or 0.4%, while S&P 500 futures traded 20 points higher, a 0.5% increase, and Nasdaq 100 futures climbed 80 points, or 0.5%.
Wall Street experienced a down day on Wednesday, with the Dow Jones Industrial Average falling almost 200 points, or 0.5%, while the Nasdaq Composite slumped 1.2%, and the S&P 500 dropped 0.7%. However, optimism returned to the market following the release of solid earnings numbers from Walt Disney (NYSE: DIS).
Boosting sentiment in the wider market, Walt Disney stock gained in premarket trading after the entertainment giant announced plans to increase prices for its streaming service and crack down on password sharing. This move aims to offset underperformance in its film and television divisions. The streaming unit, which includes popular options like Disney+ and Hulu, saw narrower losses than expected in its fiscal third quarter, thanks to increased subscription prices and cost-cutting measures in marketing.
Reuters has reported that Disney is focusing on the potential applications of artificial intelligence across its business by establishing a task force dedicated to studying the technology.
Investors are also keeping an eye on the earnings to be reported by companies such as Six Flags (NYSE: SIX), Krispy Kreme (NASDAQ: DNUT), and Ralph Lauren (NYSE: RL). Additionally, the tech sector is in focus as President Joe Biden recently unveiled a ban on investments into Chinese tech firms, which could lead to potential retaliation.
The highlight of the day will be the release of the consumer price index readings for July. These figures will give investors a fresh look at inflation in the United States, the world’s largest economy. Analysts are anticipating a 0.2% rise for the month and a 3.3% increase for the year for the headline number. Meanwhile, the core number, which excludes the volatile food and energy components, is predicted to rise 0.2% for the month and 4.8% for the year.
Investors will closely watch these inflation numbers as they could influence the Federal Reserve’s decision-making process. The central bank, which next meets in September, has recently hinted at the possibility of pausing further interest rate increases.
Ahead of the inflation report, oil prices saw a slight drop due to profit-taking. However, they remain near multi-month highs. The Energy Information Administration’s data showed unexpected growth in US crude inventories for the week ending August 4. Yet, a larger-than-expected draw in gasoline and distillate stockpiles suggested strong fuel demand in the country.
In recent days, oil prices have been supported by Saudi Arabia and Russia extending output cuts, which further tightened supply in the market.
