Dow Jones futures were flat late Thursday, while S&P 500 futures and Nasdaq futures fell slightly, echoing the action in Thursday’s regular session. Dow Jones stock Walt Disney (DIS), Trade Desk (TTD), Yelp (YELP), Activision Blizzard (ATVI) and Dropbox (DBX) were notable movers on earnings reports.
Walt Disney stock was up modestly but flirting with a buy point as Disney CEO Bob Iger laid out streaming plans. Dropbox stock rallied. Trade Desk stock, Yelp stock and Activision stock suffered painful losses.
Dow Jones Futures Today
Dow Jones futures were steady vs. fair value. S&P 500 futures lost 0.1%. Nasdaq 100 futures fell 0.2%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.
Stock Market Steady
In Thursday’s stock market trading, the Dow Jones eked out a fractional gain. The S&P 500 index slid 0.25% and the Nasdaq composite 0.5%. Meanwhile, several more stocks broke out of bases or reclaimed buy points after Wednesday’s big advance.
In a market uptrend, most stocks will rise, but not all. Buying before earnings is very risky. So is buying stocks before they break out.
Walt Disney Earnings
Disney earnings comfortably topped fiscal fourth-quarter views. Revenue growth has slowly accelerated for the past four quarters.
On the Disney earnings call, CEO Iger said the new Disney streaming service will be called Disney+. Hulu, now 60% owned by Disney, will get more original content and perhaps price hikes.
Disney stock rose 1.85% to 118.15 late. That would put shares just below a 118 buy point that they cleared multiple times last month. Disney stock fell 0.9% to 116 in Thursday’s session.
Trade Desk Earnings
Trade Desk earnings cruised past views while the ad tech firm’s revenue narrowly beat. Trade Desk also guided slightly higher for Q4. Trade Desk stock plunged 11% late, however. Shares had already stumbled 7.3% in Thursday’s trading, hitting resistance at the 50-day line.
Yelp earnings topped views but revenue fell short, with the local-search specialist also warning of weak Q4 revenue. Yelp stock crashed 28% late. Shares fell 3% in the regular session, also hitting a wall at the 50-day line like Trade Desk stock.
Yelp stock had been in a consolidation, but that follows sideways action since late last year.
Activision earnings beat while revenue was roughly in line with estimates. But the video game maker gave weak holiday-quarter guidance. Activision stock retreated 10%.
Dropbox earnings per share were 11 cents, nearly double expectations for 6 cents. The provider of data-storage and business-collaboration services also delivered solid revenue growth. Dropbox stock rose 8% late, suggesting a move back above its 50-day line. Shares have struggled with that key technical level since late June.
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