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Markets Up on Election Day; DIS, AFRM Report, Sell Off
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Markets enjoyed heir third-straight trading day in the green today, led by the blue-chip Dow index +333 points or +1.02%. Though off the day’s highs, going back to Friday last week, the Dow is now +3.7%, largely on gains made by top Wall Street banks like JPMorgan (JPM - Free Report) . Today the Dow was led by biotech giant Amgen (AMGN - Free Report) , which looks to be a finalist in the race for a first-to-market obesity drug. The company also beat earnings and raised guidance Friday, and gained +5.5% on the day.
The S&P 500 and Nasdaq were also higher, though only with about half the enthusiasm of the Dow: +0.56% and +0.49%, respectively. These indices are also bouncing back nicely from last week’s lows, by +3.3% and +3.2%, respectively. As we’ve seen since March of this year, Fed Chair Powell’s assertion that affecting inflation is more important than anything else in the stock market or the economy right now depleted whatever signs of hope market participants cared to gather. Now they’re going ab out gathering them again.
After today’s closing bell, fiscal Q4 results from The Walt Disney Company (DIS - Free Report) are out, with misses on both top and bottom lines sending the shares down in the after-market. Earnings of 30 cents per share missed the 50 cents in the Zacks consensus, on sales of $20.15 billion which missed expectations by nearly a billion dollars in the quarter. Shares had been flat ahead of the print, but collapsed -7% on the news, and have slowly been ebbing back.
Disney+ beat expectations on its quarterly subscriptions to 164.2 million, but recall this was already a lower-guided figure previously. Average Revenue per User (ARPU) was also lower than expected: $3.91 versus $4.24. Disney’s Direct-to-Consumer (DTC) business, which is the umbrella over streaming and all overseas media, fell to -$1.47 billion in the quarter. Shares were already down -36% year-to-date for the American institution. It’s streaming competitor Netflix (NFLX - Free Report) has had an even-worse year: -56% year to date.
Mobile-first digital commerce company Affirm Holdings (AFRM - Free Report) is also having a tough late-trading session following its disappointing fiscal Q1 report after today’s closing bell. Negative earnings of -86 cents per share was -4 cents worse than the Zacks consensus, while revenues of $362 million in the quarter outperformed expectations and demonstrated +34% growth year over year. This is the more important metric for a long-duration asset like Affirm, but don’t tell that to the shareholders this afternoon: the stock is down -18% on the quarterly report’s release.
The other shoe dropping — finding out who won the midterms, and what this means for federal and state governments going forward — is something that has yet to happen. Perhaps we’ll have a clear picture prior to Thursday morning’s Consumer Price Index (CPI) report for October — a snapshot for inflation as of last month — or perhaps we won’t. In any case, we’re not really expecting any resolve; thus, we see this latest “bear-market rally” to be a good deal toward the end of its tether. Questions or comments about this article and/or its author? Click here>>
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Markets Up on Election Day; DIS, AFRM Report, Sell Off
Markets enjoyed heir third-straight trading day in the green today, led by the blue-chip Dow index +333 points or +1.02%. Though off the day’s highs, going back to Friday last week, the Dow is now +3.7%, largely on gains made by top Wall Street banks like JPMorgan (JPM - Free Report) . Today the Dow was led by biotech giant Amgen (AMGN - Free Report) , which looks to be a finalist in the race for a first-to-market obesity drug. The company also beat earnings and raised guidance Friday, and gained +5.5% on the day.
The S&P 500 and Nasdaq were also higher, though only with about half the enthusiasm of the Dow: +0.56% and +0.49%, respectively. These indices are also bouncing back nicely from last week’s lows, by +3.3% and +3.2%, respectively. As we’ve seen since March of this year, Fed Chair Powell’s assertion that affecting inflation is more important than anything else in the stock market or the economy right now depleted whatever signs of hope market participants cared to gather. Now they’re going ab out gathering them again.
After today’s closing bell, fiscal Q4 results from The Walt Disney Company (DIS - Free Report) are out, with misses on both top and bottom lines sending the shares down in the after-market. Earnings of 30 cents per share missed the 50 cents in the Zacks consensus, on sales of $20.15 billion which missed expectations by nearly a billion dollars in the quarter. Shares had been flat ahead of the print, but collapsed -7% on the news, and have slowly been ebbing back.
Disney+ beat expectations on its quarterly subscriptions to 164.2 million, but recall this was already a lower-guided figure previously. Average Revenue per User (ARPU) was also lower than expected: $3.91 versus $4.24. Disney’s Direct-to-Consumer (DTC) business, which is the umbrella over streaming and all overseas media, fell to -$1.47 billion in the quarter. Shares were already down -36% year-to-date for the American institution. It’s streaming competitor Netflix (NFLX - Free Report) has had an even-worse year: -56% year to date.
Mobile-first digital commerce company Affirm Holdings (AFRM - Free Report) is also having a tough late-trading session following its disappointing fiscal Q1 report after today’s closing bell. Negative earnings of -86 cents per share was -4 cents worse than the Zacks consensus, while revenues of $362 million in the quarter outperformed expectations and demonstrated +34% growth year over year. This is the more important metric for a long-duration asset like Affirm, but don’t tell that to the shareholders this afternoon: the stock is down -18% on the quarterly report’s release.
The other shoe dropping — finding out who won the midterms, and what this means for federal and state governments going forward — is something that has yet to happen. Perhaps we’ll have a clear picture prior to Thursday morning’s Consumer Price Index (CPI) report for October — a snapshot for inflation as of last month — or perhaps we won’t. In any case, we’re not really expecting any resolve; thus, we see this latest “bear-market rally” to be a good deal toward the end of its tether.
Questions or comments about this article and/or its author? Click here>>