U.S. broadcast stocks draw election ad focus as China, retail and Disney stay on market radar

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US broadcast stocks draw focus

Highlights

Broadcast stocks including Sinclair (up 4% in August), Nexstar (up 7.5% in a month), and Gray Media (up 30% in a month) gain on political ad spending fueled by battleground state exposure.
China-focused ETFs slide sharply, with iShares China Large-Cap ETF down 17% from October high and KraneShares CSI China Internet ETF down 38%, reflecting persistent concerns over China's economic weakness in 2026.
U.S. retail data is in focus as July retail sales are expected to rise 0.1%, while retail stocks like State Street PDR S&P Retail ETF are down 4.5% from August highs and Bed Bath and Beyond is down 65% from October high.

Broadcast shares and Friday market catalysts

As reported by CNBC, investors are watching whether political advertising linked to the Nov. 3 midterm election continues to support broadcast stocks after a Wisconsin Democratic gubernatorial primary highlighted television's campaign reach.

NBC News and other outlets reported that David Crowley defeated Francesca Hong after a $4 million advertising push in the final weeks of the campaign, largely centered on television. Hong's campaign and supporting groups spent less than half a million dollars on ads during the primary, with none of that spending going to broadcast or cable TV.

That backdrop is keeping attention on station owners with exposure to battleground states. Sinclair is up almost 4% so far in August and 15% from its March 31 low, with stations in 79 markets including North Carolina, Maine, Ohio, Iowa, Michigan, Minnesota, Wisconsin, Texas and Kansas. Nexstar is up 7.5% in a month and has stations in 132 markets covering 80% of Americans, while Gray Media is up almost 30% in a month and operates in smaller markets that still include states with contested House and Senate races.

China weakness, retail data and Disney in focus

Markets are also assessing signs of weakness in China even as major U.S. benchmarks remain close to highs. The iShares China Large-Cap ETF is down 17% from its October high and about 9% in 2026, the iShares MSCI China ETF is down 19% from its 52-week high and 9% in 2026, and the KraneShares CSI China Internet ETF is down 38% from its October high and 21% in 2026.

In U.S. consumer data, the July retail sales reading is due at 8:30 a.m. ET, with a Dow Jones consensus estimate of 0.1% after 0.2% a month earlier. Retail shares have shown strain, with the State Street PDR S&P Retail ETF down 4.5% from its August high, while Bed Bath and Beyond is down 65% from its October high, American Eagle and Bath and Body Works are both down 42%, Gap is down 31%, and Kohl's, Dillard's and Tapestry are each down about 20% from their highs.

Disney is another focal point as its D23 fan event starts Friday. CNBC is scheduled to interview CEO Josh D'Amaro during the 11 a.m. hour of "Squawk on the Street," in what is described as his first interview in the top role at the entertainment company; Disney shares closed at $104.80 on Thursday and remain 12.5% below their September high.

Our earlier coverage of the Wisconsin and Michigan Democratic primary upsets looked at how surprise outcomes—despite wide polling and prediction-market leads—have increased scrutiny of forecasting reliability ahead of the 2026 midterm cycle. We noted that factors such as shifting turnout, sampling issues, and late voter moves can distort expectations and complicate how campaigns allocate resources and shape strategy heading into November.

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