The stock market’s complacency shook up again on Thursday. In recent sessions, a down day interrupted the nearly non-stop stock market euphoria.
Disney (DIS) weakened the entertainment and communications sector on Thursday. In Q4, it earned $1.11 a share, albeit on a non-GAAP measure. Revenue fell by 0.5% Y/Y to $22.46 billion. The company grew its subscription rate while it offered a strong dividend. At Disney+, core subscribers grew by 2.4% Y/Y to 131.6 million. However, revenue in its entertainment unit dropped by 6%.
DIS stock lost 7.77% yesterday.
In the stock trading segment, Interactive Brokers (IBKR) lost 7.79% on Thursday. The stock has failed since last month to break out above the $73.35 52-week high. This “exhaustion” led to the one-day drop. Furthermore, IBKR stock is expensive from a price-to-earnings ratio measure of 35.3 times. The sector median is 11.3 times.
Interactive Brokers’ competitor, Robinhood (HOOD), lost 8.61%. Thursday’s long-awaited drop weakened discount brokerage firms. Markets typically expect trading volume to fall when the stock market fear index rises. In addition, stock markets enjoyed a historic 14.67% YTD return (at least for the S&P 500).
HOOD stock indicated a bearish “double top” pattern in October at $153.86. After closing at $121.53, it returns to prices not seen since late September.
Investors may watch Charles Schwab (SCHW) and Futu Holdings (FUTU) in the capital markets space.
