Stocks set to drop as turbulence continues on Wall Street

Stock futures slump

Stocks futures tumbled early Thursday, suggesting markets would fall gain, as traders continue to digest a U.S. government report that showed April consumer price index (CPI) was hot than expected.

As of 5:30 a.m. ET, futures for the Dow gave away 135 points, or 0.45% to 3,907.50. S&P 500 futures lost 22.75 points, or 0.58% to 3,907.5 while the tech-dominated Nasdaq 100 futures shed 117.75 points, or 0.98% to 11,852.

The Dow tumbled for a fifth straight day on Wednesday and the Nasdaq Composite plummeted more than 3% after the Labor Department said inflation jumped 8.3% in April, higher than the 8.1% increase economists had forecast.

The reading suggest that inflation is showing signs of peaking, but some economists warn that it may be too soon to tell where it heads from here.

Disney shares fall after missing on earnings and revenue

Shares of Disney (NYSE: DIS) were trading lower in the premarket trading session on Wednesday after the entertainment giant posted second-quarter results that fell short of analysts’ expectations.

Disney said late Wednesday that it had adjusted earnings of $1.08 per share in the three months ended April 2. Revenue came in at $19.25 billion, up 23% from the $15.61 billion reported in the period last year.

Analysts surveyed by FactSet expected the company to come out with adjusted earnings of $1.19 per share on revenue of $20.05 billion.

Its Disney+ streaming service added 7.9 million new subscribers in the quarter, above analysts’ estimates of 5.2 million.

Disney shares dropped $5.19, or 4.93%, to $100.02 in the premarket trading session.

Bitcoin plunges below $27,000

Bitcoin dipped below $27,000 on Thursday morning in the latest continuation of its bearish comedown from a peak of $69,000 in November 2021.

The world’s most valuable cryptocurrency fell to a low of $25,401.05, its lowest mark since December 2020. Bitcoin has lost a third of its value in the past eight sessions and is down more than 45% since the beginning of the year.

Bitcoin and its smaller rivals remain highly correlated with the S&P 500 index and, the so-called riskier assets like technology stocks.

Virtual currencies have been under pressure since the tech-dominated Nasdaq Composite sank 1.5% last week amid inflation and recession concerns.

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Author: Joe A