The Market News Today: Disney, Reddit, Arm Earnings in Weekly Spotlight

Disney, Reddit, and Arm Earnings Take Center Stage

Investors await earnings from Walt Disney (DIS), Reddit (RDDT), and Arm Holdings (ARM). Disney’s Q2 report focuses on Disney Plus strategy post-proxy battle. Reddit’s first post-IPO report anticipates losses, but analysts highlight content richness. Arm Holdings expects a 6.6% revenue increase and rising earnings. Despite modest post-IPO growth, Arm shares surged 60%, with analysts optimistic about future prospects.

Buffett Trims Apple, Exits Paramount with a Loss; Eyes Future Prospects

Berkshire Hathaway, led by Warren Buffett, reduced its massive Apple stake by around 13% in Q1, selling about 116 million shares worth $135.4 billion. Buffett cited tax reasons and a potential future tax increase. Despite valuation concerns, Buffett praised Apple’s prospects, affirming it as Berkshire’s top holding. Meanwhile, Buffett disclosed Berkshire’s exit from Paramount, citing personal responsibility for the loss. Paramount, struggling with declining revenue and takeover talks, has been a challenging investment for Buffett.

Stocks Futures Rise as Weak Jobs Report Spurs Rate Cut Hopes

U.S. stock futures are rising as a weaker-than-expected jobs report fuels hopes of a Federal Reserve rate cut. Last week sees gains in major averages, with the Dow and Nasdaq up 1.1% and 1.4% respectively, and the S&P 500 up 0.5%. Berkshire Hathaway’s annual meeting reveals a 13% reduction in its Apple stake. Investors await earnings reports from Disney and Uber. Earnings beats in Q1 bolster optimism, while Fed presidents Barkin and Williams are slated to speak.

Treasury Yields Slip, Dollar Steadies Amid Rate Speculation

Monday sees U.S. Treasury yields decline after a soft April jobs report, fueling expectations of rate cuts. The 10-year Treasury yield drops 2 basis points to 4.4975%, while the 2-year yield is slightly lower at 4.8056%. The dollar remains stable as investors weigh the possibility of Federal Reserve rate reductions, following weaker-than-expected job growth and subdued wage increases in April. Fed officials’ speeches further shape market sentiment on monetary policy outlook.

Gold Up on Rate Cut Expectations, Saudi Price Hike Underpins Crude Oil

Gold prices tick higher on Fed rate cut expectations and Middle East tensions, while oil futures edge up on Saudi Arabia’s June crude price hike and Gaza ceasefire uncertainties. Investors monitor ceasefire negotiations, influencing bullion’s appeal. Weaker U.S. data increases likelihood of Fed rate cuts, supporting gold stability. Market indicates 67% chance of U.S. rate cut in September, reducing holding costs for gold. Meanwhile, Perth Mint reports a surge in gold sales in April, while U.S. energy companies cut rigs, tightening oil supply.