Retail stocks were worse off than most after yesterday's impressive rally. SPDR S & P Retail ETF (NYSE: XRT) lagged 0.3%. The technology stocks jumped and the Technology Select Sector SPDR Fund (NYSEMKT: XLK) rose 0.7%.
As for the single shares, tensions left around an important treaty renewal Walt Disney . 19659019] (NYSE: DIS) traded the bulk of the day lower and sent a word of caution from Wall Street AMD (NASDAQ: AMD) and NVIDIA (NASDAQ: NVDA) dropped.
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Disney plays hardball
Disney shares fell by 2.6% after ] Verizon Communications (NYSE: VZ) sent an email to its 4.5 million Fios TV customers in which they were warned that access to several of Disney's most popular channels could be lost. Like many stocks, the entertainment giant ended the session amidst the late-day rally, closing at 0.7%.
Verizon is negotiating a new contract to obtain Disney's namesake, Freeform, ESPN. and certain ABC affiliates after their current agreement expired on 31 December. By Wednesday afternoon, however, Verizon said that Disney had rejected any of its offers, suggesting instead that Verizon, despite the fact, pay hundreds of millions more dollars for its programming. " that many of its key networks are seeing a declining audience.
Disney, in turn, wrote in a statement that its "proven history of providing exceptional value to consumers and dealers is second to none," adding that it is "optimistic" to resign itself to Verizon.
Of course, benefits Disney has also recently started using the ESPN + streaming service, as well as the planned launch of a new ne-branded dis streaming service next year, just as Verizon hopes to avoid interrupting services with these important networks That Disney does not lose the millions of eyeballs that Verizon Fios TV offers.
A word of caution towards leaders of graphics chips
AMD's stock fell 2.3% and NVIDIA fell 1.5% after the RBC Capital Markets analyst Mitch Steves had stifled his optimistic view of both companies.
Steve repeated his outperformance assessment for both However, reduced its revenue estimates for the current quarter to near the lower end of their respective ranges. He also reduced his estimate for AMD's revenue in 2019 to approximately $ 7.29 billion (previously $ 7.41 billion) and for NVIDIA's revenue in 2019 to $ 11.76 billion (previously $ 11.99) Billion dollars).
Cuts Justification Steves noted that prices for graphics cards on websites such as Amazon Newegg and eBay declined, meaning a slowdown in the lucrative gaming segment for AMD and NVIDIA could.
The analyst also admitted that the price decline could be partly due to a slowdown in cryptocurrency mining purchases, a trend that both NVIDIA and AMD investors already knew.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. Steve Symington owns shares in Nvidia. The Motley Fool owns stocks from Amazon, Nvidia and Walt Disney and recommends them. The Motley Fool recommends eBay and Verizon Communications. The Motley Fool has a disclosure policy.
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