Shares of The Walt Disney Company rebounded on Friday, closing 3% higher at $105.45. This gain helped offset a significant 5.7% decline from the previous trading session.
Bond Market Move
According to a recent SEC filing, Disney plans to raise $4 billion through a senior notes offering. The debt issuance is structured across multiple tranches with maturities ranging from 2029 to 2036 and includes both fixed and floating-rate notes. Proceeds are earmarked for general corporate purposes.
Market Context
The financing activity comes amid shifting investor expectations for interest rates, following a U.S. inflation reading that came in softer than anticipated. However, elevated borrowing costs continue to pressure large media and consumer-focused firms.
Trading activity will pause on Monday for the Presidents Day holiday, with U.S. equity markets set to reopen on Tuesday. The shortened week may limit the establishment of any sustained market trend.
Key Data Ahead
Investor attention is now turning to the upcoming release of the Personal Consumption Expenditures (PCE) price index on February 20. This inflation metric is closely monitored by the Federal Reserve and could influence market direction when trading resumes.
Disney stock remains approximately 18% below its 52-week high of $124.69. The company recently cited challenges in its international visitor segments and reported a decline in operating profit for its entertainment division.
