Stocks slip; Disney soars after reinstating Iger as CEO

By DAMIAN J. TROISE
AP Business Writer

NEW YORK (AP) — Stocks slipped in afternoon trading on Wall Street Monday to kick off a holiday-shortened week.

The S&P 500 fell 0.5% as of 12:02 p.m. Eastern. The tech-heavy Nasdaq fell 1%.

The Dow Jones Industrial Average fell 106 points, or 0.3%, to 33,642. A 5.8% jump by Walt Disney cushioned the index’s drop. The entertainment giant announced that it had ousted CEO Bob Chapek and brought back his predecessor, Bob Iger, to replace him.

Energy stocks were among the biggest losers in the broader market as U.S. crude oil prices fell 4.5%. Exxon Mobil slipped 2.2%.

Technology stocks also weighed down major indexes. Apple fell 2.1%.

European and Asian markets were lower.

Bond yields fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.81% from 3.83% late Friday.

Investors face a relatively quiet week and markets in the U.S. will be closed on Thursday for Thanksgiving, while closing early Friday.

The Federal Reserve will release minutes on Wednesday from its latest policy meeting and potentially give investors more insight into the central bank’s fight against inflation. The Fed remains a main focus for investors as it continues raising interest rates to fight stubbornly high prices on everything from food to clothing.

The Fed has said that it could tone down the size of its rate increase, but that it may have to ultimately raise rates to a higher-than-expected level to reach its goal of taming painfully high prices. Its benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

Wall Street is concerned that the Fed could go too far in raising interest rates, which could hit the brakes hard enough on the economy to skid it into a recession. Inflation has been easing somewhat while key points of the economy, including consumer spending and employment, remain strong.

Investors don’t have much economic news to review this week, but some late earnings and corporate updates could provide more insight into inflation’s path and ongoing impact.

Carvana fell 14.2% after saying it will slash its workforce by 8% as inflation and higher interest rates squeeze the auto market.

Electronics retailer Best Buy and discount retailer Dollar Tree will report their latest financial results on Tuesday. Farming equipment maker Deere will report its results on Wednesday.

Inflation remains the main economic concern globally, but several other issues are hovering over markets.

China on Sunday announced its first new death from COVID-19 in nearly half a year as strict new measures are imposed in Beijing and across the country to ward against new outbreaks. China’s ongoing strict lockdown policies have been crimping economic growth in the world’s second largest economy and stressing businesses.

Casino operator Wynn Resorts, which has a large footprint in China, fell 2.6%. Las Vegas Sands slipped 4.5%.

Joe McDonald and Matt Ott contributed to this report.