On today’s episode of Free Lunch, Ryan McQueeney discusses a key technical analysis threshold for the S&P 500 and previews today’s Fed meeting. He also recaps earnings from Wynn, Qualcomm, and Roku. Later, he chats with Dave Bartosiak about upcoming earnings from Disney and Activision Blizzard.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks were modestly lower in morning trading Thursday, with some technical analysis followers pointing to the S&P 500’s failure to cross a key Fibonacci retracement level yesterday as a reason for the downtrend. Others have said that investors are simply hesitant ahead of today’s Fed meeting, where the central bank is expected hold rates ahead of another hike next month.
Caution might have also been inspired by a handful of disappointing earnings reports that were delivered yesterday afternoon.
Notably, casino giant Wynn Resorts (
WYNN - Free Report) missed EPS estimates and warned of a slowdown in Macau, a key gambling hotspot for Asian high rollers. Shares of Wynn, already down 30% on the year ahead of the report, tanked more than 12% in morning trading Thursday.
Investors were also disappointed by trendy young video streaming company Roku (
ROKU - Free Report) , which managed to beat top and bottom line estimates but underperformed in other key metrics. Specifically, Roku saw weaker-than-anticipated results in platform revenues and average revenue per user, sending the stock more than 18% lower today.
Things were slightly better over at Qualcomm (
QCOM - Free Report) , as the chip giant easily topped analyst expectations and noted growth in emerging markets. However, Qualcomm’s revenue guidance was a bit soft, and the stock slipped about 7% as a result.
The attention will now turn to the likes of Disney (
DIS - Free Report) and Activision Blizzard ( ATVI - Free Report) , which are due to report this afternoon. These reports come at an interesting time for both companies, and to discuss that, Ryan is joined by Zacks Strategist Dave Bartosiak.
For Disney, investors will likely be more interested in hearing about what is coming next year, as the media mogul’s over-the-top streaming service should be nearing a launch soon. At Activision, management’s commentary will also be important, but investors will want to hear more about recent launch sales and the internet backlash to a major game announcement.
Dave considers these talking points and points to his own key fundamentals and indicators ahead of today’s reports. Want to know what Dave thinks is in store for Disney and Activision tonight? Make sure to check out today’s episode of Free Lunch!
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