Dow futures jump 200 points, Disney shares soar after strong earnings: live updates – Reuters

Many analysts reiterated their bullish stances on Disney after the media giant released its latest quarterly results along with a plan to cut costs going forward.

“Bob Iger outlined a plan to cut costs, streamline content and streaming, and ultimately improve profitability,” Wells Fargo’s Steven Cahall said in a note to clients Wednesday. “An execution story is a cleaner catalyst path, and stocks should follow higher on confidence + estimates.”

See our full story for more analyst commentary.

Morgan Stanley said shares of a green hydrogen producer are set to rise thanks to the latest round of green subsidies in the United States and Europe.

The investment bank said the company would benefit as green hydrogen is set to become a “key beneficiary” of cleantech stimulus packages on both sides of the Atlantic.

The push for green energy gained further momentum after the United States unveiled its $365 billion subsidy program through the Inflation Reduction Act last year. In response, the European Union announced its Green Deal industrial plan earlier this year.

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—Ganesh Rao

Some companies may struggle to service their existing debt as banks continue to tighten their lending standards on commercial and industrial loans, LPL fixed income strategist Lawrence Gillum said in a Wednesday report.

The Federal Reserve reported earlier this week that loan officers at major national banks have raised the threshold for commercial and industrial businesses seeking credit, and that potential borrowers have also reduced their demand for loans. Commercial and industrial loans, or C&I loans, are short-term business loans that are often secured by company guarantees. These loans are an important source of funding for lower-rated companies, Gillum said, because borrowing or issuing stock can sometimes be too restrictive and expensive.

According to Gillum, a crunch in lending could lead to higher bond yields and spreads for some companies. This increases the risk that high-yielding companies will default on their payments and lack access to emergency C&I loan funding if needed. That risk is only exacerbated if the economy contracts this year, Gillum added.

“While we like high yield from a strategic perspective (for investors with a longer time horizon), we would caution investors interested in allocating new assets to the space, as it there will likely be increased short-term volatility,” Gillum wrote. .

– Pia Singh

Earnings reports on Wednesday evening show more evidence that consumers are spending on experiences.

Revenue from Disney parks and experiences exceeded expectations as visitors flocked to the parks over the holidays, according to the company, which also cited “increasing visitor spending.” CEO Bob Iger said on the call that demand for parks is “amazing right now,” but it wouldn’t make sense to let more people in and dilute the guest experience or charge more. for tickets.

Casino and hotel operators MGM and Wynn have seen a similar trend. AT MGM:

• Room revenue soared 46%
• Average daily rates increased by 30%
• And the occupancy rate was 91%

Meanwhile, to Wynn:

• Vegas casino revenue increased by 17%
• Room revenue jumped 20%
• Entertainment and retail revenue soared 36%
• Average daily rates increased by 12%
• Occupancy hovered around 90%

—Robert Hum, Tanaya Macheel

Here are the stocks that make the biggest moves in extended trading:

• Affirm – The buy now, pay later company fell 19% in extended trading as fiscal second-quarter earnings and revenue missed analyst estimates, according to Refinitiv. CEO and founder Max Levchin also announced layoffs equivalent to 19% of the workforce effective immediately.
• Mattel – Shares fell 12% after the company said shoppers bought fewer toys this holiday season and fourth-quarter sales fell 22% from a year earlier.
• Disney – Shares rose more than 5% after the company reported a weaker-than-expected decline in subscriber numbers, as well as a beat in the top and bottom numbers. CEO Bob Iger also announced that Disney would cut 7,000 jobs as part of a cost-cutting and reorganization plan.

For more details and more great movers, check out the full story here.

—Tanaya Macheel

Stock futures were little changed to begin trading Wednesday evening.

Dow Jones Industrial Average futures rose 27 points, or 0.08%. S&P 500 futures were just above the fixed line at 0.01% and Nasdaq 100 futures edged up 0.04%.

—Tanaya Macheel