Today in the Market (11/29/2022)

Good Evening. Wall Street resumed its slow start to the week on Tuesday, as investors continued to scrutinize China’s COVID policy and anticipate Federal Reserve Chair Jerome Powell’s planned address.

The S&P 500 fell 0.16%, while the Nasdaq Composite fell 0.59%. The Dow Jones was essentially flat for the day (0.01%).

OUT WITH THE OLD, IN WITH THE NEW

AMC Networks (AMCX) intends to lay off around 20% of its U.S. employees in the wake of CEO Christina Spade’s departure after less than three months on the job.

AMC Chairman James Dolan allegedly told staff that the network has struggled to counteract cable reductions, citing AMC+ and horror platform Shudder as examples of the company’s owned-streaming companies.

AMC+, which debuted in July 2020, saw its total subscriber base increase by 44% year-over-year to reach 11.1 million in the third quarter. However it was not enough, these numbers lag significantly behind those of its competitors, with Netflix (NFLX) boasting approximately 223 million paying users and Disney+ (DIS) maintaining 164.2 million.

It does not stop there… According to Nielsen statistics, streaming exceeded both cable and broadcast TV for the first time ever in August, collecting 34.8% of total viewing compared to 34.4% for cable and 21.2% for broadcast. The media environment has transformed dramatically over the last decade and a half, and customers now have an abundance of options, with streaming at the forefront and dominated by Netflix, Apple TV+, and Amazon Prime Video, among others.

ACTIVE IN THE BOND MARKET

Amazon.com Inc., the second-largest business in the world by sales, is offering $8.25 billion in investment-grade notes before a possible rise in inflation diminishes investors’ desire for highly rated paper.

Why now? The online retailer is one of eleven corporations active in the bond market on Tuesday in anticipation of impending turmoil. Chairman of the Federal Reserve Jerome Powell is slated to speak on Wednesday, followed by critical inflation data on Thursday and the US jobs report on Friday.

What type of offerings? The company’s senior unsecured bonds are being issued in five tranches, with the longest — 10-year security — yielding 0.95% points over Treasuries, according to a person familiar with the situation who requested anonymity because the facts are confidential. Initial price discussions anticipated a spread of 1.15% points and an offering size of $7 billion, according to the source, indicating that the bonds received substantial investor interest.

What could it be used for? The proceeds may be used to support acquisitions and share repurchases, the individual said. In April, Amazon raised $12.75 billion via the sale of bonds, the company’s first issuance in about a year.

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