Markets Mixed as Disney, Regional Bank Shares Slide

U.S. equity markets finished mixed as optimism about easing inflation was offset by Walt Disney’s (DIS) streaming business woes, new concerns about the health of regional banks, and a jump in initial jobless claims.

Walt Disney was the biggest drag on both the Dow and S&P 500 after the entertainment giant said the number of subscribers to its Disney+ streaming service dropped by 4 million. Shares of rivals Paramount Global (PARA) and Warner Bros. Discovery (WBD) were down as well, but Netflix (NFLX) shares advanced. 

Oil futures dipped on worries about a possible recession, and that sent shares of oil producers, as well as oilfield services providers Halliburton (HAL), SLB (SLB), and Baker Hughes (BKR), down. Shares of big industrial firms such as Caterpillar (CAT), Deere & Company (DE), and Dow (DOW) declined. Intel (INTC) shares slipped more than 3%, and shares of other chipmakers fell.

PacWest Bancorp (PACW) reported deposits plunged 9.5% last week, sinking its shares and those of other regional banks. Peloton Interactive (PTON) recalled 2.2 million exercise bikes because of a safety hazard with the seats, and its shares slumped. 

Robinhood Markets (HOOD) shares gained after the online retail brokerage posted better-than-expected quarterly results, and said it will offer customers 24-hour trading. Shares of Alphabet (GOOGL) moved higher for a second day after the tech giant indicated it would integrate more artificial intelligence (AI) into its products. Amazon (AMZN) shares continued their winning streak, now into their eighth straight day. 

The yield on the 10-year Treasury note declined. Prices for gold, silver and other precious metals lost ground. The U.S. dollar was up versus the euro, pound, and yen. Major cryptocurrencies traded in negative territory.