The stock market plunged on Wednesday after inflation turned higher than expected. This nearly neutralized the recent rally for stocks.
S&P 500 dropped 4.3% to 3,933, while NASDAQ fell 5.2% to 11,634.
Tweet of the Day
CNBC’s Rick Santelli: We agreed spending was causing inflation yet Biden “spent more” pic.twitter.com/dxuxyoyL6h
— RNC Research (@RNCResearch) September 13, 2022
Meanwhile, buying 21st Century Fox has crippled Walt Disney (DIS) financially.
Chart of the Day
Our chart of the day is the ten-year chart of DIS.
Founded as a cartoon studio in the 1923, DIS is the world’s largest media company, consisting of theme parks such as Disneyland and Walt Disney World, and media distribution including ABC, ESPN, 20th Century Studios, and Pixar.
It seems like streaming is growing, while cable and regular TV is eroding. Theme parks are doing great. The company spent so much on content in the 21st Century Fox deal that the debt is so large its hurting profits. The company made $7 per share in 2018 and might make $4 this year.
DIS is part of the Conservative Growth Portfolio. David Sharek’s Fair Value is 27x profits, or $104 a share.
