A U.S. flag is seen outside the New York Stock Exchange on Jan. 26, 2023.
Andrew Kelly | Reuters
Top 10 things to watch Wednesday, May 7
— Jeff Marks wrote today’s Top 10.
1. The stock market is heading for a higher open today, driven by Treasury Secretary Scott Bessent indicating that U.S. trade rep Jamieson Greer and he will meet with Chinese officials in Switzerland this weekend to discuss trade. Investors are also looking ahead to this afternoon’s Fed rate decision. No change is expected. However, Fed chief Jerome Powell’s post-meeting commentary will be key.
2. Disney reported a quarterly beat and guidance raise, and the Club stock jumped nearly 8%. Revenue of $23.62 billion versus the $23.14 billion expected and adjusted earnings per share of $1.45 versus the $1.20 expected. The company expects adjusted EPS of $5.75 in fiscal year 2025 versus the $5.43 consensus. The forecast represents 16% year-over-year growth, up from prior expectations of high single digit growth. Disney+ subscribers surprisingly increased versus prior guidance of a decline. DTC made $336 million. Experiences operating income also beat. Disney announces plans for a new theme park and resort in Abu Dhabi. No capital investment outlay but will collect royalties.
3. Advanced Micro Devices delivered a better-than-expected quarter and gave an upside revenue forecast for the current quarter, inclusive of a $700 million China headwind. Data center revenues — both CPUs and GPUs — increased 57% year over year, topping forecasts. Bank of America upgraded AMD to a buy.
4. Shares of Marvell Technology, also a chipmaker, dropped almost 8% after the company delayed its June Investor Day event due to a “dynamic macroeconomic environment.” Marvell will host a webinar on custom silicon instead. The company also reaffirmed the midpoint of its revenue outlook but narrowed the range. Cantor Fitzgerald downgraded the stock to neutral on worries about Microsoft moving one of its custom AI chips to Broadcom.
5. Uber revenue missed expectations, but EPS of 83 cents exceeded estimates of 50 cents. The stock lost 4%. First quarter gross bookings up 14% was a little light, but the second quarter forecast was solid.
6. Wynn Resorts missed across the board; EBITDA missed due to a lower VIP hold in Macao. BofA upgraded the stock to a buy and raised its price target to $100 per share from $90 to get ahead of the Wynn Al Marjan Island opening in early 2027. The analysts also called Wynn’s Vegas business best in class and Macao derisked.
7. Honeywell got an upgrade to buy at Bank of America. The analysts expect a return to stable/positive earnings revisions. We’ve been saying that one thing Club name Honeywell has done differently this year is set guidance that it can actually beat.
8. Emerson Electric reported a better-than-expected quarter and raised the low end of its adjusted EPS guidance range. The stock rose 5%.
9. Novo Nordisk reported lower-than-expected sales of its obesity drug in the first quarter but sees trends improving in the second half of the year as compounded versions phase out. The stock jumped 5.5%.
10. Arista Networks reported better than expected first quarter sales and adjusted EPS, and second quarter forecast was slightly higher than estimates. But the company did not raise its full-year outlook due to tariff-driven uncertainty. The stock dropped 6%,
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