Major indexes closed mixed, with the Dow Jones Industrial Average and S&P 500 ending modestly higher and the Nasdaq closing fractionally lower on Tuesday.
In a week short on major economic data, earnings were once again in the spotlight. Among the day's big movers was Disney, which reported results before the bell. Shares ended the day down 10% despite the Mouse House showing it had made huge strides toward profitability in its streaming business — something media investors have long been desperate to see. Disney's streaming unit, which includes Disney+, lost just $18 million in the quarter compared to a loss of $659 million in the same quarter a year ago.
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CEO Bob Iger, fresh off winning a bruising proxy battle with activist investor Nelson Peltz, said the company expects streaming to become a profitable business later this year. Still, that wasn't enough to overcome a somewhat soft outlook for growth in subscribers as well as theme park visitors.
Shares of Palantir, the data analytics software company that counts the U.S. military as a major client, also fell 15% after earnings came in only in line with expectations. The stock is still up nearly 30% on the year.
Lyft and Reddit among the names due to report earnings after the bell. (Last quarter, Lyft saw its stock briefly rocket 60% over a typo in the company's earnings report. Copy editors are sure to be on the lookout for another market-moving error this quarter.)
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Meanwhile, analysts at Bank of America put out a note Tuesday urging investors not to buy into the old Wall Street adage, "Sell in May and go away" on the assumption that markets tend to underperform in the summer months. The analysts presented data showing that markets typically stage "big summer rallies" in a presidential election year.
Earnings Highlights To Watch This Week
- Wednesday: Toyota, Uber, Airbnb, Shopify
- Thursday: Honda, ING, Warner Bros. Discovery, Warner Music Group
- Friday: Canadian energy multinational Enbridge, Soho House
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Carlo Versano is a Newsweek editor based in New York, covering live and breaking news. He is an Emmy-winning journalist ... Read more
