Disney, Tesla

The minutes of the US Federal Reserve's meeting show that most policy makers have agreed to slow the pace of the upcoming rate hike. The market had absorbed the impact of the 50 basis point increase in the federal funds rate before the last FOMC meeting of the year. The Federal Reserve issued a more moderate statement within a few minutes after raising interest rates four times by 75 basis points, which relieved market pressure to a certain extent. $.SPX.US$ It rose 0.6%, while $.IXIC.US$ It's up 1.0%.

The number of first-time jobless claims in the US rose more than expected to reach 240,000, but the overall labor market situation continues to be tense. Overall consumer confidence also continued to decline from 59.9 to 56.8, according to data from the University of Michigan.

After the Chinese government readjusted and relaxed some quarantine measures, China continued to make efforts to deal with the surge in COVID-19 cases and death reports. This has led to stricter testing measures for visitors to Beijing, and blockades have also been imposed in parts of the capital. Contrary to the strong performance of the Chinese stock market $ConstituentStocks in HS China Enterprises Index.HK$ It's down -2.7% this week.

Disney CEO change

$DIS.US$ A surprising move was announced to replace Bob Chapek by bringing in former CEO Bob Eagle. This is a surprising move since Cha Peck only recently renewed his contract in June.

Disney has also received interest from aggressive managers. Following Disney's announcement of earnings in August, Third Point reported that it had purchased “significant shares” in the company and sent a letter urging Disney to divest ESPN and expedite the acquisition of Hulu from Comcast. Another rights fund management company, Trian Fund Management, also bought Disney's 800 million US dollar shares earlier this month. The hedge fund disapproves of Eger's unexpected return and is pushing for further cost cuts and board changes.

Currently, Disney's price-earnings ratio is 24 times, and earnings per share are growing 16.7%. It traded nearly 1 standard deviation below the 3-year average price-earnings ratio.

Upset Elon Musk

Share price $TSLA.US$ The recent performance was poor, with a sharp decline of 19% this month. This is because people are worried that CEO Elon Musk is too upset about buying Twitter. He has publicly claimed that he lives at Twitter's headquarters full time and will stay there until the company is “fixed.” So it once again gives the feeling that Musk is Twitter's full time CEO while ignoring Tesla.

Currently, Tesla's valuation is 26.3 times EV/EBITDA. Historically, Tesla's stock price is more than 1 standard deviation lower than its 3-year average of 32.5 times.