TLDR

MARKET RECAP → Stocks climbed on Thursday, with the mighty Dow (DIA) marking its seventh consecutive win, as fresh jobless claims data sparked renewed hopes for Federal Reserve rate cuts later in the year.

WARNER BROS. DISAPPOINTS → 🎥 Warner Bros. Discovery (WBD) missed Q1 targets with a $9.96B revenue and strategic shifts towards bolstering streaming growth and revamping studio outputs, despite ongoing network and film segment struggles.

JOBLESS CLAIMS PEAK → 📊 U.S. jobless claims hit a new high since August at 231,000, hinting at labor market shifts amid steady Fed watch, with market reactions subdued and rate cuts expected by September.

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MARKETS

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Notable Earnings This Week

TODAY’S TOP NEWS

Warner Bros. Disappoints

📉 Missed Expectations: Warner Bros. Discovery (WBD) reported a Q1 loss of 40 cents per share on revenues of $9.96 billion, both missing analyst expectations. The company's stock fell nearly 4% in premarket trading as it grappled with a 7% year-over-year revenue decline and continued challenges across its network and studio segments.

📺 Streaming and Sports Strategy: Despite challenges, the streaming service added 2 million subscribers, reaching 99.6 million. Warner Bros. Discovery is also focusing on sports rights, including ongoing NBA negotiations, and has partnered with Disney for a bundled streaming service combining Max, Disney+, and Hulu, aiming to minimize subscriber churn.

🎬 Studio and TV Network Struggles: The TV networks and studio segments saw revenue drops of 8% and 12%, respectively. The company attributed the decline to soft advertising markets and underperforming releases like "Suicide Squad." CEO David Zaslav announced initiatives to revitalize the studio, including a new "Lord of the Rings" film planned for 2026.

TODAY’S TOP NEWS

Jobless Claims Peak

📈 Rise in Unemployment Filings: Weekly jobless claims surged to 231,000 for the week ending May 4, marking the highest level since late August 2023. This increase of 22,000 from the previous week exceeded expectations and signals a potential shift in an otherwise strong labor market.

🔍 Continuing Claims and Market Impact: Continuing unemployment claims also rose to 1.78 million, reflecting an increase of 17,000 from the previous week. Despite this uptick in jobless claims, stock market futures showed minimal reaction, maintaining a slightly negative stance, and Treasury yields were mixed.

🌐 Economic Indicators and Fed Watch: The unexpected jump in unemployment filings, alongside April’s modest payroll increase of 175,000, suggests the labor market might be normalizing. Federal Reserve officials, who have kept a close eye on employment data to guide inflation control measures, anticipate starting to lower interest rates by September.

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