Market Today: Broadcom's China Deal Delay and Disney's Marvel Movie Pushback
The semiconductor sector showed resilience as the week concluded, with stocks like AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) posting significant gains. AMD's shares surged nearly 5% without any direct company news, while Nvidia's stock climbed almost 3% following reports that a Chinese AI startup had stockpiled its chips before the latest U.S. export restrictions. Intel (NASDAQ:INTC) also enjoyed a rise, increasing by 3% in sympathy with its industry peers. Broadcom (NASDAQ:AVGO) saw a 4% increase amid speculations that the delay in its acquisition of VMware (NYSE:VMW) by Chinese regulators had political undertones. This news came ahead of a scheduled meeting between President Biden and President Xi Jinping, which could potentially influence the deal's outcome.
In the entertainment industry, Disney (NYSE:DIS) faced a setback as it announced the delay of several Marvel movies, causing its shares to fall by 2.8%. The schedule changes come shortly after CEO Bob Iger emphasized a shift towards quality over quantity in the company's film production strategy. The delays affect titles such as "Deadpool 3," "Captain America: Brave New World," and others, with new release dates spanning from 2024 to 2025. This news follows the recent agreement between the SAG-AFTRA union and studios, ending a strike that had disrupted Hollywood productions.
The telecommunications sector is witnessing strategic movements, with US Cellular (NYSE:USM) and Telephone and Data Systems (NYSE:TDS) undergoing a review that has attracted interest from major wireless companies and private equity firms. Verizon (NYSE:VZ), AT&T (NYSE:T), and T-Mobile (NASDAQ:TMUS) are among those showing interest, particularly in the tower assets, while considering the potential divestiture of spectrum and telecom units. This strategic review comes as US Cellular seeks to explore its options in the evolving telecommunications landscape.
Microsoft (NASDAQ:MSFT) shares hit an all-time high, rising nearly 1.7% to $366.63, buoyed by investor optimism following strong quarterly results, particularly from its Azure cloud unit. The company's market cap reached $2.7T, with shares climbing over 11% in the past month. Analysts have highlighted Microsoft's potential in AI and its current position in a favorable buy cycle, suggesting further upward momentum for the stock.
Medical Properties Trust (NYSE:MPW) experienced a downgrade from Stifel to Hold from Buy, amid concerns over tenant stresses and delays in asset sales. The downgrade followed reports that its largest tenant partially paid rent, contributing to a 1.9% slide in MPW's stock. The challenging credit environment and potential for additional tenant issues have cast a shadow over the trust's outlook.
Boeing (NYSE:BA) faced a cybersecurity challenge as internal data was leaked by the hacking group Lockbit. Despite the data breach, Boeing assured that there was no threat to aircraft or flight safety. The incident affected Boeing's parts and distribution business, with the company's spare parts website going offline as a result.
In the renewable energy sector, Montauk Renewables (NASDAQ:MNTK) saw a significant drop in its stock price following a disappointing earnings report and a cut in its full-year outlook. The company cited lower rainfall and higher temperatures as factors affecting its renewable natural gas production. Similarly, Plug Power (NASDAQ:PLUG) plummeted after reporting a wider-than-expected loss and issuing going concern warnings, leading to multiple analyst downgrades.
The alcohol sector felt the ripple effects of Diageo plc's (NYSE:DEO) revised revenue and profit forecast, which was lowered due to a challenging outlook in Latin America and the Caribbean. The anticipated 20% decline in organic sales for the region prompted declines in stocks like Brown-Forman (BF.A) and Anheuser-Busch InBev (NYSE:BUD).
This article first appeared on GuruFocus.
