The market is abuzz with activity as several key sectors and global events are poised to shape the trading landscape. From unexpected political victories boosting broadcast stocks to a looming economic slowdown in China and crucial retail sales data, investors are bracing for a dynamic session.
TV Stocks Rally on Political Spending Surge
The political arena is injecting significant momentum into the broadcast television sector. In a surprising turn, David Crowley's victory in the Wisconsin gubernatorial primary, fueled by a substantial $4 million ad spend primarily on television, underscores the enduring power of the medium. This trend is particularly relevant as the U.S. gears up for the November midterm elections.
Companies like Sinclair are already showing strong performance, up nearly 4% in August and 15% since its March low. With stations in 79 markets, including key battleground states, Sinclair is well-positioned. Similarly, Nexstar has seen a 7.5% gain in the past month, boasting TV stations in 132 markets that reach 80% of Americans. Gray Media has experienced an impressive surge of nearly 30% in the last month, despite operating in smaller markets, it covers 37% of the U.S. TV audience and has a presence in states with hotly contested House and Senate races. Investors will be looking for further insights on "Morning Call" with Morgan Brennan.
China's Economic Woes Cast a Shadow Over Global Markets
While U.S. indices like the S&P 500 reach record highs, the economic outlook in China presents a stark contrast. The iShares China Large-Cap ETF (FXI) is down 17% from its October peak and 9% year-to-date. The iShares MSCI China ETF (MCHI) mirrors this downturn, falling 19% from its 52-week high and down 9% in 2026. The KraneShares CSI China Internet ETF (KWEB) has been hit particularly hard, plummeting 38% from its October high and down 21% in 2026. "Squawk Box" will delve into the potential for a large-scale economic event in China and its repercussions for the U.S. economy.
Retail Sales Data: A Key Indicator for Consumer Spending
All eyes will be on the July retail sales figures, scheduled for release at 8:30 a.m. ET and live on "Squawk Box." The Dow Jones consensus estimate anticipates a modest 0.1% increase, a slight dip from the previous month's 0.2% rise. The performance of retail stocks remains a concern, with the State Street PDR S&P Retail ETF (XRT) down 4.5% from its August high. Many prominent retailers are struggling, with Bed Bath and Beyond down 65% from its October high, American Eagle and Bath and Body Works both down 42%, and Kohl's, Dillard's, and Tapestry each down 20%. Gap has also seen a significant decline, down 31% from its high.
Disney Gears Up for D23 Expo Amidst Stock Volatility
The highly anticipated D23 expo, Disney's premier fan event, kicks off on Friday. CNBC TV's Julia Boorstin will feature an exclusive interview with CEO Josh D'Amaro on "Squawk on the Street" at 11 a.m. ET, marking his first interview since taking the helm. Despite the excitement surrounding the expo, Disney's stock has experienced volatility, currently trading 12.5% below its September high. The stock, which once reached $203 in March 2021, closed at $104.80 on Thursday.
