By Geoffrey Smith
Investing.com -- Walt Disney (NYSE:DIS) stock slipped in premarket trading on Monday, as a strong opening weekend for the new blockbuster ‘Dr. Strange 2’ failed to generate outperformance amid signs of another broad selloff coming.
By 08:25 AM ET (1225 GMT), Disney stock was down 2.1%, slightly underperforming a broad 1.6% fall in S&P 500 futures. The market is set for a drop at the open after a weekend in which investors have had time to evaluate a mixed employment report that, on balance, did little to ease concerns of rising interest rates and pressure on corporate profit margins.
That’s despite signs that Disney’s movie business is back close to firing on all cylinders after two years that have been devastated by the pandemic. ‘Dr. Strange 2’ generated some $185 million in box office receipts at theaters across North America at the weekend, the strongest opening of the year to date, ahead of ‘The Batman’, which raked in $134 million.
It made another $265 million globally, bringing the total debut weekend take to $450 million.
Figures collated by Comscore indicated that no other movie took in more than $10 million across North America.
Disney’s movie business has struggled over the last two years as COVID-19 has disrupted production schedules and closed theaters across the world, making it impossible for the studio to cover the astronomical costs of blockbuster production. Its theme parks and cruise divisions have also suffered, leaving its TV and streaming operations as the mainstay of earnings.
The strong start to the summer blockbuster season and the lifting of COVID restrictions on its theme parks suggests that the entertainment powerhouse is returning to more normal operating conditions – at a time when market sentiment toward the much-hyped streaming business is weakening.