Markets continue to perform relatively well off lows from mid-last week. These lows were higher than the previous divot in mid-April, and this spells a good trend to this point. Minus large-scale economic reports this week, attention will necessarily turn to the remainder of earnings reports yet to come out. The Dow is up +30 points at this hour — riding a 4-day winning streak by the way — with the S&P 500 +5 points but the Nasdaq -13. The S&P and Nasdaq currently have 3-day winning streaks.
The Walt Disney Co. (DIS - Free Report) is out with fiscal Q2 numbers this morning. Earnings of $1.21 per share outperformed the Zacks consensus by 9 cents for a +8% positiver surprise, on in-line revenues of $22.1 billion in the quarter. This marks the 6th-straight quarter posting a positive earnings surprise for the global entertainment conglomerate, with full-year earnings guidance ratcheting up slightly from previous expectations.
Shares of Disney are down in the early trading session, however. The -8% sell-off may have something to do with a weaker box office draw in the quarter, although that was expected. Its Direct-to-Consumer (DTC) business posted positive operating income for the first time, but is expected to slow a bit in the ongoing quarter. Parks brought in $1.61 billion, higher than expected, but also anticipated to pull back somewhat in Q3. Disney+ added 6 million new subscribers in the quarter, well ahead of estimates.
Also consider Disney’s recent valuation. The stock had risen an impressive +28% year to date going into this morning’s print, so from that perspective it looks like a clear “sell the news” move. CEO Bob Iger is talking on the conference call at this hour, and we will keep a close eye on Disney shares as the regular trading day begins. Pulling back focus a moment, that +28% valuation growth since the start of the year was mostly filling in for a weaker 2023.
Colorado-based footwear company Crocs (CROX - Free Report) beat estimates for Q1 this morning. Earnings of $3.02 per share represents a +34% surprise over the $2.25 expected, swinging to a profit from an expected loss year over year. Quarterly sales of $938.63 million easily surpassed the $882.60 million in the Zacks consensus, also swinging to a positive year over year. Shares are up +2.5% in early trading, adding to the company’s strong +35.6% year to date.
Pre-market futures have continued to thaw. We are now positive on the Dow (+74 points), S&P (+8 points) and Nasdaq (+5) at this hour, with a gently bullish sentiment accompanying a continued decent series of calendar Q1 reported earnings results. Minneapolis Fed President Neel Kashkari makes a public appearance later this morning, with a Consumer Credit report out this afternoon. After the close, we look toward the first public quarterly earnings report from Reddit (RDDT - Free Report) , along with Twilio (TWLO - Free Report) , Wynn Resorts (WYNN - Free Report) and more.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Markets continue to perform relatively well off lows from mid-last week. These lows were higher than the previous divot in mid-April, and this spells a good trend to this point. Minus large-scale economic reports this week, attention will necessarily turn to the remainder of earnings reports yet to come out. The Dow is up +30 points at this hour — riding a 4-day winning streak by the way — with the S&P 500 +5 points but the Nasdaq -13. The S&P and Nasdaq currently have 3-day winning streaks.
The Walt Disney Co. (DIS - Free Report) is out with fiscal Q2 numbers this morning. Earnings of $1.21 per share outperformed the Zacks consensus by 9 cents for a +8% positiver surprise, on in-line revenues of $22.1 billion in the quarter. This marks the 6th-straight quarter posting a positive earnings surprise for the global entertainment conglomerate, with full-year earnings guidance ratcheting up slightly from previous expectations.
Shares of Disney are down in the early trading session, however. The -8% sell-off may have something to do with a weaker box office draw in the quarter, although that was expected. Its Direct-to-Consumer (DTC) business posted positive operating income for the first time, but is expected to slow a bit in the ongoing quarter. Parks brought in $1.61 billion, higher than expected, but also anticipated to pull back somewhat in Q3. Disney+ added 6 million new subscribers in the quarter, well ahead of estimates.
Also consider Disney’s recent valuation. The stock had risen an impressive +28% year to date going into this morning’s print, so from that perspective it looks like a clear “sell the news” move. CEO Bob Iger is talking on the conference call at this hour, and we will keep a close eye on Disney shares as the regular trading day begins. Pulling back focus a moment, that +28% valuation growth since the start of the year was mostly filling in for a weaker 2023.
Colorado-based footwear company Crocs (CROX - Free Report) beat estimates for Q1 this morning. Earnings of $3.02 per share represents a +34% surprise over the $2.25 expected, swinging to a profit from an expected loss year over year. Quarterly sales of $938.63 million easily surpassed the $882.60 million in the Zacks consensus, also swinging to a positive year over year. Shares are up +2.5% in early trading, adding to the company’s strong +35.6% year to date.
Pre-market futures have continued to thaw. We are now positive on the Dow (+74 points), S&P (+8 points) and Nasdaq (+5) at this hour, with a gently bullish sentiment accompanying a continued decent series of calendar Q1 reported earnings results. Minneapolis Fed President Neel Kashkari makes a public appearance later this morning, with a Consumer Credit report out this afternoon. After the close, we look toward the first public quarterly earnings report from Reddit (RDDT - Free Report) , along with Twilio (TWLO - Free Report) , Wynn Resorts (WYNN - Free Report) and more.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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