TV Ad Spending Surge Could Boost Iowa Broadcast Stocks Ahead of Midterms
As the November midterm elections approach, Iowa's broadcast television stations are poised to benefit from a surge in political advertising spending, and investors are taking notice. The recent Wisconsin Democratic gubernatorial primary demonstrated that traditional TV ads remain a powerful force in modern politics, and that trend could spell opportunity for companies with strong Iowa presence.
Wisconsin Primary Shows TV Ads Still Matter
In a surprising outcome, Milwaukee County Executive David Crowley defeated Francesca Hong in Wisconsin's Democratic gubernatorial primary, defying pollster expectations. According to NBC News, Crowley's victory was fueled by a $4 million advertising blitz in the final weeks of the campaign, with the bulk of that spending going to broadcast and cable television.
Hong's campaign and supporting groups spent less than half a million dollars on ads throughout the primary, none of which aired on TV. The result was a decisive win for Crowley, proving that television advertising has not outlived its usefulness in American politics.
Broadcast Stocks With Iowa Ties Are Rising
With the U.S. gearing up for the Nov. 3 midterm election, several broadcast companies with significant Iowa operations are seeing their stocks climb. These companies are positioned to capture a share of the estimated billions in political ad spending expected this cycle.
Sinclair Broadcast Group
Sinclair, which operates stations in 79 markets including Iowa, is up nearly 4% so far in August and has gained 15% from its March 31 low. The company has a strong footprint in battleground states like Iowa, North Carolina, Ohio, Michigan, Minnesota, Wisconsin, Texas, and Kansas.
Nexstar Media Group
Nexstar is up 7.5% over the past month. The company boasts TV stations in 132 markets, covering 80% of American households. Its reach includes Iowa and other key states with contested House and Senate races.
Gray Media
Gray Media has surged nearly 30% in the last month. While the company operates in some smaller markets and covers 37% of the U.S. TV viewing public, it maintains a presence in all the states with competitive races, including Iowa.
China's Economic Woes Could Impact U.S. Markets
Beyond the election cycle, investors are watching developments in China that could have ripple effects on American markets. The S&P 500 and Russell 2000 are at record highs, and the Nasdaq Composite and Dow Industrials are near their peaks. China's markets tell a different story.
The iShares China Large-Cap ETF (FXI) is off 17% from its October high and down about 9% in 2026. The iShares MSCI China ETF (MCHI) is down 19% from its 52-week high. The KraneShares CSI China Internet ETF (KWEB) has fallen 38% from its October peak and is down 21% this year.
Retail Sales Data Coming Friday
Investors will get fresh data on consumer spending Friday morning when the July retail sales report is released at 8:30 a.m. ET. The Dow Jones consensus estimate calls for a 0.1% increase, down from the 0.2% reading a month earlier.
Retail stocks have struggled recently. The State Street PDR S&P Retail ETF (XRT) is off 4.5% from its August high. Individual retailers are faring worse: Bed Bath and Beyond is down 65% from its October high, American Eagle is down 42%, and Gap has fallen 31%. Kohl's, Dillard's, Tapestry, and Bath and Body Works are all down at least 20% from their highs.
Disney CEO to Speak at D23 Expo
Walt Disney CEO Josh D'Amaro will give his first interview since taking the helm at the entertainment giant during the company's D23 fan expo, which begins Friday. The stock closed at $104.80 on Thursday, down 12.5% from its September high. At its peak in March 2021, Disney traded at $203 per share.
For Iowa investors, the convergence of election-season ad spending, retail data, and global economic signals provides plenty to watch in the coming weeks. Broadcast stocks with local ties appear particularly well-positioned as campaigns ramp up their spending in the Hawkeye State and across the nation.
