The Market News Today: S&P, Nasdaq Break Losing Streak; All Eyes on Disney’s Earnings

Wall Street Futures Rise, Ending Decline Streak Amid Mixed Earnings Reports

Stock futures climbed on Wednesday, breaking a three-day downturn. S&P 500, Nasdaq, and Dow futures all showed gains. After-hours trading saw Super Micro Computer and Airbnb shares drop following disappointing earnings. Tuesday’s regular trading ended positively, with all major averages and S&P 500 sectors advancing. However, experts warn of potential volatility ahead. The ongoing earnings season provides mixed signals, with some encouraging reports amid economic cooling. Notable companies reporting on Wednesday include Disney, CVS Health, Shopify, and Novo Nordisk.

Disney Earnings Preview: Investors Seek Turnaround Amid Streaming Challenges

Walt Disney’s stock has fallen nearly 25% since winning its proxy fight against Nelson Peltz in April. The company’s fiscal third-quarter earnings report, due Wednesday, is eagerly anticipated for potential stock recovery. Analysts expect earnings of $1.19 per share on $23.0 billion revenue. CFRA Research recently lowered Disney’s price target to $100, maintaining a Hold rating. Investor focus will likely be on Disney+ progress, particularly in technology improvements, customer retention, and user experience enhancements amidst challenges in linear and streaming businesses.

After-Hours Trading: Airbnb Plunges, Lumen Surges as Earnings Roll In

Extended trading saw significant movements in various stocks following earnings reports. Airbnb fell 13% due to missed estimates and slowing demand. Reddit dipped despite beating expectations. Wynn Resorts and Rivian showed mixed results. Super Micro Computer dropped on earnings miss, while Lumen Technologies surged 77% on revenue beat. Instacart advanced on strong performance, and Tripadvisor declined following a revenue miss. These after-hours movements reflect the market’s immediate reactions to companies’ financial results and outlooks.

API Data Shows Surprise Build in U.S. Oil Stocks, EIA Report Awaited

Oil prices dipped in early Asian trading after API data revealed unexpected increases in U.S. crude and gasoline inventories, countering global supply concerns. Brent and WTI futures fell slightly, reversing gains from the previous session. The API reported increases in crude, gasoline, and distillate stocks, contrary to analyst expectations. Markets now await the EIA’s official inventory data release. Despite recent price drops due to recession fears, Middle East tensions and production issues in Libya continue to support oil prices.

Bitcoin Rebounds Slightly, but Recovery Slows Amid Persistent Economic Concerns

Bitcoin’s price rose on Wednesday, extending its recovery from five-month lows as bargain hunters entered the market. However, the rebound is losing momentum due to ongoing concerns about a U.S. recession, Japanese interest rate hikes, and Middle East tensions. The cryptocurrency market faces additional challenges, including potential U.S. government sales and decreased interest in crypto derivatives. Meanwhile, the IMF reported progress in talks with El Salvador but highlighted Bitcoin adoption as a continuing issue. Overall, the crypto market remains cautious amid various economic and political factors.