Market Preview: Disney Headlines Earnings While Investors Look for JOLT Numbers to Expand


Tuesday investors will digest earnings from Walt Disney Company (DIS) and Discovery Communications (DISCA). Investors will be looking for an update from Disney on its upcoming purchase of $71B of Twenty-First Century Fox (FOXA) assets (FOXA reports earnings Wednesday). Analysts will also want an update on the new Disney streaming service, as the competition in that market is heating up. Discovery stock is up substantially since late last year, but has traded in a range since completing the acquisition of Scripps in March. Analysts are looking for year-over-year earnings growth of 23.5% after a 43% increase last quarter.

Tuesday also brings the release of the Labor Department’s JOLT report. The Job Openings and Labor Turnover survey provides data on both new job openings being created and employees quitting their current jobs. Both numbers are expected to rise as employees become more confident in the employment market and their prospects for higher wages.

CVS Health Corp. (CVS) and Booking Holdings (BKNG) will report earnings on Wednesday. CVS is a company in the midst of a squall, if not a small hurricane. The company faces slowing revenue, its long-term care Omnicare business is not performing as expected, and it is in the middle of an acquisition of Aetna. CEO Larry Merlo will need to be an expert juggler on the conference call to manage the wide range of issues. Booking, owner of Priceline.com, had a great run after its earnings release in late February, but has slowly faded since then. Analysts will be looking for continued growth in listings, and a possible double digit increase in room nights booked.

The MBA Mortgage Applications numbers will be released on Wednesday. The index measures applications at mortgage lenders and is a leading indicator for single-family home sales and construction. The number will be very closely watched as recent increases in interest rates have driven mortgage rates to their highest level in two months.

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