• Oil price rebound
• Disney (DIS.US) and Activision Blizzard (ATVI.US) will publish quarterly results after market close
US indices opened higher on Tuesday, adding to gains in the previous session, as oil prices staged a recovery and several states are planning to reopen some businesses. California will lift some restrictions on Friday and the New York Governor Cuomo announced the reopening process will come in 4 phases, starting from May 15th.
US imports fell by USD 15.4 billion from the previous month to USD 232.2 billion in March 2020, the lowest level since November 2016, as the coronavirus pandemic led to a sharp fall in activity and demand. The ISM Non-Manufacturing PMI for the US fell to 41.8 in April of 2020 from 52.5 in the previous month and higher than market forecasts of 36.8. The figure pointed to the first contraction in the services sector since December of 2009 however, markets did not pay too much attention to macroeconomic publications today.
S&P500 (US500) opened higher today and is heading towards major resistance level at 2904.6 pts. Local support can be found at 2727.7 pts. Source: xStation5Disney (DIS.US) will report quarterly results today after market close. The ongoing pandemic had a huge impact on the entertainment businesses like Disney, which is relying on in-person activities including theme park attendance, cruise line bookings, and viewership at live sports network ESPN. Demand for all of these activities plummet recently. On the other hand, stay at home orders could positively impact the results of the new Disney+ streaming service, which attracted more new customers. Investors will be closely watching how these contrary trends will affect company's performence. Wall Street estimates significanlty lower adjusted earnings per share and higher revenue mostly thanks to the company's acquisition of 21st Century Fox last year. A key metric to look for in today's report is revenue at Disney's Parks, Experiences and Products segment, which will mainly be affected by the coronavirus pandemic. Analysts expect a significant drop.
Parks, Experiences and Products revenue is expected to fall 12.2% YOY as parks are closed, travel dwindles, and retail sales of non-necessities fall due to coronavirus pandemic. However revenue may be higher due to its $71.3 billion purchase of entertainment giant 21st Century Fox, which occurred a year in March of 2019, near the end of Q2 FY 2019.Source: Bloomberg, XTB Research
Disney (DIS.US) share price bounced off the local support at $98.65 per share which is additionally strengthened by upward trend line. As long as the price sits above it, the upward move towards $113.55 is possible. Source: xStation 5
A key metric to look for will be the growth in monthly active users (MAU). The metric is a tally of the total number of individuals who accessed Activision Blizzard games in a given month. An individual who accessed one game counts as one user, for example, while a person who accessed two games in a month would be counted as two users. MAU is important metric for companies like Activison Blizzard which are generating huge chunk of their profits from online subscriptions and from the sale of in-game content. Since Q1 2017 to Q3 2019 company have been posting declines in MAU numbers. Only in Q4 2020 MAUs suddenly started to rebound. In Q1 analysts also expect the company to report higher figure.Source: Bloomberg, XTB Research,
Activision Blizzard (ATVI.US) share price bounced of the upward trend line and is heading towards this year highs at $68.48 per share. However if bears will manage to regain control then support at $62.36 may be at risk. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appHertz Global (HTZ.US)— According to The Wall Street Journal car rental compny secured an additional advisor to help with bankruptcy proceedings. The company’s stock dropped ed 23% in extended trading.
AIG (AIG.US)— Shares whipsawed in extended trading after insurance company posted its first quarter results. AIG earned 11 cents per share excluding some items on revenue of $14.44 billion, while analysts expected 72 cents per share on revenue of $11.45 billion. The company withdrew its previously issued guidance, and announced that Covid-19 would represent the largest-ever catastrophe loss for the industry.
Pfizer (PFE.US) and BioNTech (BTNX) started the first U.S. trial of their experimental coronavirus vaccine. If vaccine turns out to be effective, then it could be distributed in the US by the end of the year.
Starbucks (SBUX.US) – plans to reopen over 85% of its U.S. stores by the end of the week, although service will be limited to pickup, delivery, and drive-thru.
Shake Shack (SHAK.US) – reported better than expected quaterly results. Company earned 2 cents per share, beating the consensus estimate of a breakeven quarter. The restaurant company’s revenue of $143.17 million came in below analysts’ estimates of $145.06 million. The restaurant chain’s said it cannot reasonably estimate the impact of the coronavirus outbreak however the demand is showing signs of rebounding.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
