Market Movers: Disney Soars, Cisco Slumps, and Oil Demand Projections Shift
Disney’s Stellar Earnings Report Sends Shares Skyrocketing
The Walt Disney Company (DIS) is basking in the glory of its impressive earnings report, with shares surging 9% in premarket trading. The media giant’s revenue of $22.57 billion exceeded analysts’ estimates of $22.50 billion, while its adjusted earnings per share (EPS) of $1.14 narrowly beat expectations of $1.11. Disney’s streaming business also recorded an operating profit of $253 million, marking its second consecutive profitable quarter.
Economic Indicators: Producer Price Index Takes Center Stage
Following yesterday’s Consumer Price Index (CPI) release, all eyes are on the Producer Price Index (PPI), set to be released at 8:30 a.m. ET. Economists predict a 0.2% increase in wholesale prices for October, which could impact the Federal Reserve’s interest rate decisions. With inflation under control and a resilient job market, economists expect the central bank to continue making cuts in the near future.
Super Micro Computer Shares Plummet Amid Reporting Delays
Super Micro Computer (SMCI) shares are taking a nosedive, plummeting 11% in premarket trading, after the server maker announced it would delay filing its fiscal first-quarter financial report. This setback comes on the heels of the company’s inability to predict when it would file its 2024 annual report, a requirement to maintain its Nasdaq listing.
Cisco Systems’ Disappointing Earnings Report Weighs on Shares
Cisco Systems (CSCO) shares are down 3% in premarket trading after the networking giant reported declining first-quarter profit and revenue. Despite beating analysts’ projections, Cisco’s net income of $2.7 billion, or 68 cents per share, and revenue of $13.8 billion, down 6% year-over-year, failed to impress investors.
International Energy Agency Adjusts Oil Demand Projections
The International Energy Agency (IEA) has revised its oil demand growth projections, citing China’s slowing economy. The agency now forecasts world oil demand to grow by around 920,000 barrels per day (B/D) this year, up from its previous estimate. However, it has trimmed its forecast for next year, predicting growth of “just shy of” 1 million B/D.
Market Trends: U.S. Stock Futures Little Changed, Dollar Strengthens
U.S. stock futures are trading relatively flat, while the dollar continues to gain ground against the euro, pound, and yen. As investors digest the latest earnings reports and economic indicators, market volatility is expected to remain high.
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