Warner Brothers Discovery Drops 19%

Company reported worse loss than expected
By Newser Editors and Wire Services
Posted Nov 8, 2023 3:49 PM CST
Warner Brothers Discovery Drops 19%
Traders on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew)

Stocks drifted to another mixed close Wednesday as Wall Street continues to recalibrate following its sharp recent swings.

  • The S&P 500 rose 4.40 points, or 0.1%, to 4,382.78 in its third straight day of quiet trading.
  • The Dow Jones Industrial Average fell 40.33 points, or 0.1%, to 34,112.27.
  • The Nasdaq composite rose 10.56 points, or 0.1%, to 13,650.41
Eli Lilly jumped after getting US approval for a weight-loss drug, while Warner Brothers Discovery sank after reporting a worse loss for the last quarter than expected. The 10-year Treasury yield eased, which helped to calm financial markets broadly. Crude oil prices continued to slump further and are back to where they were in July.

Eli Lilly was one of the strongest forces pushing upward on the market. It rose 3.2% after US regulators said its popular diabetes treatment, Mounjaro, can be sold as a weight-loss drug and tap into a market with massive potential. American Airlines, Delta Air Lines, and United Airlines were also toward the front of the market, and each rose more than 2% as oil prices continued to drop and ease the pressure on fuel costs. Oil prices have been tumbling since topping $90 a little more than a month ago. The price for a barrel of US crude oil is back to where it was in July, and it dropped another $2.04 Wednesday to settle at $75.33. Brent crude, the international standard, fell $2.07 to $79.54.

Warner Brothers Discovery tumbled 19% after reporting a worse loss for the latest quarter than analysts expected. It also lost more streaming subscribers than forecast. Gunnar Weidenfels, the company's chief financial officer, said it is facing a US ad market "that has continued to be weaker than we had hoped," Deadline reports. Elsewhere on Wall Street, Axon Enterprise rose 6.1% after the maker of Tasers, body cameras, and other equipment reported stronger profit for the latest quarter than analysts forecast.

(More stock market stories.)

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