The Walt Disney Company pushed the Dow Jones and the S&P 500 to all-time highs after reporting its quarterly results. The main stock indexes showed a stellar rally amid the publication of Disney’s upbeat earnings report, which exceeded all expectations. The shares of the company climbed by 3.1%.
Last quarter was one of the most profitable for Disney. The company's revenue significantly surpassed Wall Street’s forecasts. There has been profit growth in almost every area. The streaming service has attracted more customers than expected. Besides, the famous amusement parks that were closed during the pandemic have reopened, bringing hefty profit again. Apart from that, the improved economic conditions in the country, the adoption of an infrastructure bill by the Senate, and a decrease in inflation contributed to high reporting results. This is why it is hardly surprising that US stock indexes soared.
Recently, investors have been extremely worried about the growth of consumer prices and a possible tightening of the Fed's monetary policy. However, now, those fears have ebbed away. "What we know about inflation at this point is that it remains relatively high, but it doesn't appear to be getting a lot worse at the moment. High inflation isn’t always a bad thing if it’s accompanied by strong economic growth, and now it’s just an indication that the economy is doing very well," Randy Frederick, managing director of trading and derivatives at Charles Schwab, said.
