What’s News in Markets: Disney Shines, Cleveland-Cliffs Slides, Boeing Climbs

Summary

WSJ What’s News in Markets: Disney Shines, Cleveland-Cliffs Slides, Boeing Climbs Release Date: May 10, 2025

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Introduction

In the episode titled "What’s News in Markets: Disney Shines, Cleveland-Cliffs Slides, Boeing Climbs," Francesca Fontana of The Wall Street Journal delves into the significant stock movements of the week, analyzing the underlying factors that influenced investor sentiments across major sectors. This summary encapsulates the key discussions, insights, and conclusions presented during the episode, providing a comprehensive overview for those who missed the broadcast.

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Market Overview

Francesca opens the discussion by setting the scene for the week's market performance. She notes a rocky start, with both the S&P 500 and the Dow Jones Industrial Average ending nine-day winning streaks on Monday. Investor anxiety was palpable, further exacerbated by President Trump's meeting with Canada’s Prime Minister and the ongoing discourse around potential trade deals.

“The stock market started this week pretty gloomy as The S&P 500 and the Dow both snapped nine day winning streaks on Monday.” ([00:30])

However, by midweek, there was a noticeable turnaround. The Federal Reserve's decision to hold interest rates steady provided some stability, and the announcement of a trade pact between the US and the UK injected optimism into the markets, particularly benefiting Boeing.

Despite these positive developments, all three major indices concluded the week slightly lower, reflecting a week of volatility and mixed sentiments.

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Disney's Stellar Performance

One of the standout stories of the week was Disney's impressive performance. Francesca highlights the company's strategic expansion and robust financial results as key drivers behind the stock's surge.

Disney announced plans to inaugurate its seventh global theme park in Abu Dhabi, marking a significant expansion of its Experiences division. This move not only taps into a new lucrative market but also underscores Disney's commitment to diversifying its revenue streams beyond traditional media.

“Disney shares jumped 11%, making it the best performer in the Dow that day.” ([Duration not specified])

Furthermore, Disney reported strong earnings, emphasizing increased attendance and higher visitor spending at its US theme parks. The success of the Experiences unit has had a positive ripple effect on Disney's streaming platforms and its film and TV studios, areas where the company and its competitors are grappling with challenges like declining cable TV viewership and underperforming box office numbers.

However, Francesca also touches upon emerging threats, notably President Trump's comments advocating for 100% tariffs on films produced outside the United States, which could pose challenges for Disney's international content distribution.

By the end of the week, Disney's stock had appreciated by approximately 15%, making it a top performer and a beacon of positivity in an otherwise uncertain market landscape.

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Cleveland-Cliffs Faces Headwinds

Shifting focus to the steel industry, Francesca discusses the tumultuous performance of Cleveland-Cliffs, a major US steelmaker. The company announced plans to pause or slow operations at six of its plants following a wider first-quarter loss and reduced revenue. These operational adjustments are expected to impact around 2,000 jobs but are projected to save the company approximately $300 million annually.

“Cleveland Cliff's shares ended up plummeting 16% on Thursday and on a weekly basis lost more than 20%.” ([Duration not specified])

The future of steel demand in the U.S. remains uncertain. Initially, steel prices saw an uptick as customers anticipated President Trump's tariffs on imported metal. However, this rally has lost momentum, with buyers hesitant to place large orders amidst economic uncertainty. This volatility has significantly affected Cleveland-Cliffs' stock performance, reflecting broader apprehensions within the steel sector.

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Boeing Benefits from US-UK Trade Agreement

A pivotal development of the week was the announcement of a trade agreement between the United States and the United Kingdom. Francesca elaborates on how this pact has had a favorable impact on Boeing’s stock performance.

The agreement included a notable provision where British Airways, owned by International Airlines Group (IAG), committed to purchasing $10 billion worth of Boeing planes. Commerce Secretary Howard Lutnick highlighted this commitment, framing it as a substantial win for Boeing.

“...Commerce Secretary Howard Lutnick said a British airline would buy $10 billion worth of Boeing planes.” ([Duration not specified])

In exchange for this significant aircraft purchase and concessions such as reduced tariffs on certain US beef imports, the Trump administration agreed to roll back tariffs previously imposed on British steel and cars. This mutual agreement not only fosters better trade relations but also secures a substantial boost for Boeing amid challenging market conditions.

Further solidifying the deal, on Friday, IAG confirmed the order of 32 Boeing planes, reinforcing the initial commitment and providing additional support to Boeing's stock, which rose by 3.3% on Thursday and recorded a weekly gain of 5.1%.

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Conclusion

Francesca Fontana wraps up the episode by encapsulating the mixed sentiments that characterized the week's market movements. While Disney and Boeing showcased strong performances bolstered by strategic expansions and favorable trade agreements, Cleveland-Cliffs highlighted the ongoing challenges within the steel industry amid economic uncertainties and shifting trade policies.

For listeners seeking deeper insights into market dynamics and stock movements, Francesca directs them to her column in the Wall Street Journal's Exchange section, where a more detailed analysis awaits.

“You can read about more stocks that moved on the week's news in the Score, my column in the Wall Street Journal's Exchange section.” ([05:10])

The episode offers a nuanced view of the interplay between corporate strategies, government policies, and market reactions, providing valuable takeaways for investors and market enthusiasts alike.

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Production Credits

The episode was produced by Zoe Kolkin and Pierre Bienname, with supervising producer Talia Bell. Francesca Fontana signs off with well wishes for the weekend, underscoring the continuity of informed market analysis in subsequent broadcasts.

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Key Takeaways:

• Disney's Expansion: Launching its seventh global theme park in Abu Dhabi and robust earnings driven by the Experiences unit.
• Cleveland-Cliffs' Challenges: Operational slowdowns due to decreased revenue and uncertain steel demand impacting stock performance.
• Boeing's Upturn: Benefiting from a US-UK trade agreement, securing a $10 billion order from British Airways, and subsequent stock gains.
• Market Sentiments: A week marked by volatility, influenced by trade negotiations, Federal Reserve policies, and sector-specific developments.

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This comprehensive summary provides an insightful overview of the week's significant market events, capturing the essence of the discussions and offering valuable perspectives on the factors shaping stock performances.

Transcript

[A]

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[B]

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[C]

February 2024 through January 20Hey listeners, it's Saturday, May 10th. I'm Francesca Fontana for the Wall Street Journal and this is what's news in markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it. The stock market started this week pretty gloomy as The S&P 500 and the Dow both snapped nine day winning streaks on Monday. Trade jitters, of course, continued to be at play for investors, and those jitters weren't calmed by President Trump's meeting with Canada's PR prime minister or promises of trade deals. But things turned around on Wednesday as the Federal Reserve held rates steady. And we got a nice rally on Thursday on the announcement of a trade pact between the US and the UK which had some good news in it for Boeing, but more on that later. All in all, though, all three major indexes ended the week slightly lower. First up, let's talk Disney. The entertainment company announced plans for a new theme park and investors were certainly celebrating. Disney said that its new park, which will be its seventh global park, will be built in Abu Dhabi, so it's expanding its lucrative experiences business into a new market. The company also posted strong earnings, saying that its US Theme parks attracted more guests and higher spending from visitors in the latest quarter. Disney's Experiences unit, which is the home of its theme parks and cruises, has helped boost its other businesses, including its streaming platforms and its film and TV studios. And those areas at Disney and at its rivals have an array of issues that they're facing, like declining cable TV and underperformance at the box office. And of course, a new threat has also emerged. President Trump's recent comments calling for 100% tariffs on films produced outside. So how'd the stock do on Wednesday? Well, Disney shares jumped 11%, making it the best performer in the Dow that day. And on the week, the stock gained about 15%. Now let's talk steel. Of course, as we've seen, President Trump has been trying to build up American steel demand with tariffs on foreign metal. Meanwhile, as we learned this week, one of the major US Steelmakers is shrinking. Cleveland Cliffs on Wednesday said it will pause or slow operations at six plants after posting a wider first quarter loss and lower revenue. These production cuts and changes in its operations are expected to affect about 2,000 jobs and save the company some $300 million a year. Now the future for steel demand in the U.S. it seems, is still unclear. Steel prices climbed as customers were buying up steel ahead of Trump's tariffs on imported metal. But now that rally has stalled and buyers are holding off on placing big orders in an uncertain U.S. economy. Cleveland Cliff's shares ended up plummeting 16% on Thursday and on a weekly basis lost more than 20%. And we finally got a big trade deal development this week with the US UK Agreement announced on Thursday. And like I said earlier, it contained good news for Boeing, $10 billion worth of good news, you might say, because during the announcement, Commerce Secretary Howard Lutnick said a British airline would buy $10 billion worth of Boeing planes. And in exchange for the UK buying these jets, as well as doing other things like cutting tariffs on some US Beef imports, the Trump administration agreed to roll back tariffs imposed on British steel and cars. And we got more specifics on Friday when British Airways owner IAG said it's ordered 32 Boeing planes. So after making some smaller moves in both directions earlier in the week, Boeing shares gained 3.3% on Thursday and notched a weekly gain of 5.1%. And now you know what's news in markets this week. You can read about more stocks that moved on the week's news in the Score, my column in the Wall Street Journal's Exchange section. Today's show was produced by Zoe Kolkin and Pierre Bienname with supervising producer Talia Bell. I'm Francesca Fontana. Have a great weekend and I will see you next Saturday.

[A]

Isn't home where we all want to be? Reba here for realtor.com, the Pro's number one most trusted app. Finding a home is like dating. You're searching for the one with over 500,000 new listings every month. You can find the one today. Download the realtor.com app cause you're nearly home. Make it real with realtor.com pros number.

[B]

One most trusted app based on August 2024 proprietary survey. Over 500,000 new listings every month based on average new for sale and rental listings February 2024 through January 2025.