Why Disney Shares Are Rising

Walt Disney Co DIS shares are trading at session highs Friday afternoon, up 2.75% to $83.03. The stock is trading higher after Bernstein initiated coverage on shares with an Outperform rating and $103 price target.

Stocks across sectors are also rebounding after falling earlier due to a rise in Treasury yields following September jobs data. Yields have also pulled back from earlier highs.

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Why It Matters

When Treasury yields decrease, it generally becomes cheaper for companies to borrow money through the issuance of corporate bonds. Lower borrowing costs can benefit Disney by reducing its interest expenses when it needs to raise capital for various purposes, such as financing new projects, acquisitions or debt refinancing.

This can positively impact Disney's financial health and potentially boost its stock price.

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Disney also operates in various segments, including theme parks, media networks and consumer products. Changes in interest rates can indirectly influence consumer spending. Lower interest rates can make borrowing cheaper for consumers, which may encourage spending on leisure activities like visiting Disney theme parks or purchasing Disney merchandise.

A boost in consumer spending can positively impact Disney's revenue and, consequently, its stock price.

According to data from Benzinga Pro, Disney has a 52-week high of $118.18 and a 52-week low of $78.73.