CNBC Daily Open: Wall Street rebounds, investors to monitor earnings and inflation data

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Bounce back
After Monday’s sharp sell-off, Wall Street managed to claw back much of the week’s losses. The S&P 500 ended the week just 0.04% lower, while the Dow Jones Industrial Average slipped 0.6% and the Nasdaq Composite dipped 0.18%. At its lowest point on Monday, the S&P 500 was down nearly 10% from its recent high and the Nasdaq entered correction territory. Meanwhile, the yield on the 10-year Treasury dipped, while U.S. oil prices rose to post gains of more than 4% for the week.

Villains
Disney unveiled plans for new theme-park attractions as part of a $60 billion decade-long expansion. A new villains land is coming to Magic Kingdom. Hollywood Studios will add a land inspired by “Monsters, Inc.” Indiana Jones and “Encanto” rides are coming to Animal Kingdom and Avengers Campus in Disney’s California Adventure is set to double in size with two new attractions. Theme parks have historically been a leading unit but in the most recent quarter, Disney’s domestic parks saw slower consumer demand amid rising prices.

Trump losses
Trump Media, which owns the Truth Social app, reported a net loss of over $16 million for the latest quarter, with revenue dropping 30% to $836,900. The company’s stock, whose biggest shareholder is former President Donald Trump, has significantly declined from its peak of over $71 in March to $26.21 at Friday’s close. Trump Media has a market capitalization of nearly $5 billion, an unusually high valuation given its financial performance.

Conflict of interest?
Sen. Elizabeth Warren has questioned Tesla’s board about CEO Elon Musk potentially using company resources to benefit his other ventures like SpaceX and xAI. “Tesla’s Board of Directors appears to be failing to meet its fiduciary duties to Tesla’s shareholders by neglecting to address company CEO Elon Musk’s apparent conflicts of interest,” Warren wrote in a 10-page letter to Tesla Chairwoman Robyn Denholm. Warren has previously called for investigations into Musk’s Twitter takeover. Musk has criticized Warren for years. 

Asia markets climb higher
Asia-Pacific markets were mostly higher on Monday ahead of U.S. economic data later in the week. With Japan’s stock market closed for a public holiday, the Taiwan Weighted Index was the biggest gainer, up 1.4% as Hon Hai Precision Industry — also known as Foxconn — soared 4%. South Korea’s Kospi rose 1.1%, led by chip maker SK Hynix, which jumped 3.2%. Australia’s S&P/ASX 200 advanced 0.5%. Australian consumer electronics retail company JB Hi-Fi was up 8% after the company released its full-year results. Mainland China’s CSI 300 slipped 0.2%, while Hong Kong’s Hang Seng index was little changed. 

[PRO] Distinct market
While U.S. and Japanese indexes fell sharply amid recent volatility, the MSCI China index rose slightly, reinforcing China’s distinct market status despite slower growth. This resilience may signal a buying opportunity for investors seeking diversification. 

The Marvel Cinematic Universe has earned more than $30 billion across 34 films since 2008, a record-breaking feat in the film industry. However, critics and fans believe the franchise has faltered since “Avengers: Endgame” in 2019, as evidenced by the disappointing opening of “The Marvels.” Disney acknowledged that its push for more streaming content may have contributed to this decline and is now shifting focus to quality over quantity.

At Disney’s biannual D23 Expo on Friday, the company capitalized on the success of “Deadpool & Wolverine” and Pixar’s “Inside Out 2,” both grossing $1 billion globally, by announcing plans to release more sequels and prequels, including “Moana 2,” “Toy Story 5” and “Frozen III.”

While Disney’s fortunes are improving, with its streaming services (Disney+, Hulu, ESPN+) turning a profit for the first time, its typically reliable theme park revenue is facing challenges due to a slowing economy and rising prices, leading to lower attendance. At the D23 event, Disney detailed plans to invest $60 billion over the next decade to enhance its theme parks.

Still, Disney’s shares are down 4.5% so far this year, however, CNBC’s Sean Conlon noted it’s one of the most oversold stocks and could be due for a bounce. 

This week, investors will gain more insight into consumer sentiment as Walmart and Home Depot release their earnings. With investors on edge after the most volatile week since the pandemic, more economic data is expected, including July’s consumer price index and initial claims. CNBC’s Sarah Min has more on what to expect. 

After the S&P 500 experienced its worst day since 2022 on Monday — amid concerns about the unwinding of the yen carry trade — the index rebounded on Thursday as initial claims eased economic fears. However, R.J. O’Brien’s Thomas Fitzpatrick warned of potential volatility ahead.

“There is no World in which the equity and Bond market reactions yesterday to a 7k beat in one initial claims number makes sense,” Fitzpatrick wrote Friday. “All that shows you is that in the coming weeks we are likely to see increased volatility and outsized reactions to market news and data.”

— CNBC’s Sarah Whitten, Jesse Pound, Brian Evans, Lora Kolodny, Dan Mangan, Michael Wayland, Hakyung Kim, Pia Singh and Spencer Kimball contributed to this report.