CNBC Daily Open: Wall Street rebound fizzles out
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 .
Fizzling out
Wall Street's attempts to recover from Monday's sell-off ran out of steam. The Dow Jones Industrial Average surrendered a 480-point gain to close 234 points lower. The S&P 500 retreated 0.77%, while the Nasdaq Composite experienced a sharper decline of 1.05%. Technology stocks were at the forefront of the reversal, as Nvidia shed 5%, Tesla dropped 4.4% and Super Micro Computer plummeted 20% following disappointing fourth-quarter earnings. Meanwhile, the yield on the 10-year Treasury edged higher and U.S. oil prices rose over 2% amid escalating tensions in the Middle East.
Write down
Warner Bros. Discovery's stock dropped more than 6% in extended trading after it reported a $9.1 billion write-down on its TV networks and missed analyst estimates on second-quarter revenue. The charge reflects the declining value of traditional TV networks as customers flee and advertisers opt to spend on digital and streaming instead. Revenue at its TV networks — which include TBS, TNT, Discovery and TLC — was down 8% to $5.27 billion. However, the company's streaming business Max added 3.6 million subscribers during the quarter, bringing its total global streaming customers to 103.3 million.
Recession on horizon
JPMorgan Chase CEO Jamie Dimon still believes that the odds of a "soft landing" for the U.S. economy are around 35% to 40%, making recession the most likely scenario in his mind. "There's a lot of uncertainty out there," Dimon told CNBC. "I've always pointed to geopolitics, housing, the