U.S. stocks fell on Thursday morning as new inflation data came in cooler than expected but regional banking concerns continued to weigh on markets.
The S&P 500 (^GSPC) fell 0.42% at the market open, while the Dow Jones Industrial Average (^DJI) shed 277 points, or 0.83%. The technology-heavy Nasdaq Composite (^IXIC) fell 0.17%.
On Thursday morning, regional bank PacWest (PACW) reported deposit outflows were reignited in May. PacWest stock slumped nearly 30% in pre-market trading after the company disclosed in an SEC filing its deposits fell 9.5% in the first week of May. Western Alliance (WAL) shares fell nearly 4% after also providing a deposit update.
Shares of Disney (DIS) sunk more than 8% after reporting first-quarter earnings that came in slightly weaker than analysts had hoped on Wednesday night. The media and entertainment conglomerate’s price increases for Disney+ helped offset a lower-than-expected subscriber number. The report comes as Disney executes a broad restructuring plan amid an ongoing battle with Florida Gov. Ron DeSantis.
Elsewhere in earnings, shares of Robinhood (HOOD) soared 9% as the company reported better-than-expected revenue in the first quarter following the closing bell on Wednesday. The financial services platform also announced it will be launching 24-hour trading services for certain securities.
Several companies reported earnings prior to the opening bell on Thursday, including Sonos (SONO). The technology equipment maker that makes consumer products like bluetooth speakers cut its full-year guidance for revenue and adjusted EBITDA amid “softening consumer demand,” according to Sonos CEO Patrick Spence. Shares tanked 20%, the largest fall in nine months.
Peloton (PTON) stock also dropped on Thursday as the fitness company recalled more than two million bikes. Shares were down more than 6% on the news.
Executive Chairman of the Walt Disney Company, Bob Iger arrives at the world premiere for the film ‘The King’s Man’ at Leicester Square in London, Britain December 6, 2021. REUTERS/Hannah McKay
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