Good Evening! Concerns rippled through the banking industry on Thursday, as investors were on edge ahead of a vital February employment data scheduled for release on Friday morning.
The S&P 500 was down 1.85% at the closing bell, the Dow Jones fell by 1.66%, and the Nasdaq Composite dropped 2.05%.
WE ALL FALL TOGETHER
The S&P 500 bank index fell over 6% on Thursday, its worst one-day decline in more than two years, as investors left the sector in response to SVB Financial Group’s (SIVB) announcement of a share sale.
The details… As the business announced a $1.75 billion share sale late on Wednesday, shares of SVB, whose operational parts include Silicon Valley Bank, fell more than 50% in their largest one-day decline ever. SVB is experiencing a cash burn as a result of decreased deposits from businesses facing a lack of venture capital financing.
It doesn’t stop there… Investors were also coping with the slide of cryptocurrency-focused lender Silvergate Capital, which fell 22% after announcing late Thursday that it will cease operations and voluntarily liquidate after incurring losses due to the collapse of cryptocurrency exchange FTX.
DON'T COUNT OUT ESPN JUST YET
Disney (DIS) CEO Bob Iger said that the firm remains optimistic about ESPN’s prospects inside the media company, but that he would have an “open mind” on the network’s long-term future.
What makes ESPN special? The executive cited the network’s favorable ratings at a time when linear television is declining, in addition to ESPN+’s 25 million users. Iger’s remarks match what he told investors on the company’s quarterly results call last month. The executive, who referred to ESPN as a “differentiator” for Disney, said that commercialization was the greatest issue, but that the ESPN brand was “very healthy.”
The overall picture? Disney Entertainment will incorporate the company’s full portfolio of entertainment media and content companies internationally, including streaming. While Disney Parks, Experiences, and Products will report earnings as a separate entity.