Market Today: Broadcom's China Deal Delay And Disney's Marvel Movie Pushback
The semiconductor sector showed resilience during the week, with shares of AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) posting strong gains. AMD shares rose nearly 5% without direct news from the company, while Nvidia shares rose nearly 3% as the Chinese artificial intelligence startup shelved its chips ahead of recent U.S. export restrictions. Intel (NASDAQ:INTC) shares were also higher, rising 3% in favor of its sector peers. Shares of Broadcom (NASDAQ:AVGO) rose 4% on rumors that Chinese regulators' delay in acquiring VMware (NYSE:VMW) was politically motivated. The news comes ahead of a planned meeting between Biden and President Xi Jinping that could influence the outcome of the deal.
In the entertainment sector, Disney (NYSE:DIS) suffered a setback after announcing delays to several Marvel films, sending its shares down 2.8%. The change in plans comes shortly after CEO Bob Iger emphasized a shift toward quality in the company's film production strategy. The delays will affect Deadpool 3, Captain America: Brave New World and other games with new release dates scheduled for 2024-2025. The news follows a recent agreement reached between SAG-AFTRA and the studios. The strike stopped production in Hollywood.
The telecommunications sector is undergoing a strategic shift, with Cellular Telecommunications (NYSE:USM) and U.S. Telephone and Data Systems (NYSE:TDS) undergoing an overhaul that has drawn interest from wireless giants and private equity firms. Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS) are among those showing interest, particularly in tower assets, given the potential sale of their spectrum and telecommunications divisions. This strategic review comes as US Cellular attempts to explore opportunities in the evolving telecommunications industry.
Microsoft (NASDAQ:MSFT) shares hit an all-time high, rising nearly 1.7% to $366.63, helped by investor optimism following strong quarterly results, especially from its cloud unit Azure. The company's market capitalization has reached $2.7 billion, and shares are up more than 11% over the past month. Analysts highlighted Microsoft's potential in artificial intelligence and its current position in a lucrative acquisition cycle, suggesting further gains for the stock.
Stifel downgraded Medical Properties Trust (NYSE:MPW) from Hold to Buy due to concerns about tenant tensions and delays in asset sales. Following the downgrade, the largest tenant announced partial rent payments, sending MPW shares down 1.9%. A difficult credit situation and the possibility of new problems with tenants have clouded the outlook for confidence.
Boeing (NYSE:BA) is facing a cybersecurity crisis after hacker group Lockbit published internal data. Despite the data leak, Boeing assured that there was no threat to either the aircraft or flight safety. The incident affected Boeing's parts sales and distribution business, causing the company's parts website to go offline.
In the renewable energy sector, the Montauk Renewables (NASDAQ:MNTK) share price fell sharply after a disappointing earnings report and worsening full-year outlook. The company cited less rainfall and higher temperatures as factors affecting renewable natural gas production. Separately, Plug Power (NASDAQ:PLUG) shares fell after reporting larger-than-expected losses and warnings, prompting multiple analyst downgrades.
The alcohol industry was hit by Diageo plc's (NYSE:DEO) (NYSE:DEO) revised revenue and earnings forecast due to challenging outlooks in Latin America and the Caribbean. An expected 20% drop in organic sales in the region has sent stocks like Brown-Forman (BF.A) and Anheuser-Busch InBev (NYSE:BUD) tumbling.
This article first appeared on GuruFocus.
