With the elections coming to a conclusion, the pendulum has officially swung in the other direction and what a week it's been. The S&P 500 rebounded by about 250 points and the DOW by about 2000+ points. Ooh-wee!
Major indices took in a huge fuel injection and leveled off on Friday: (11/6/20):
Dow Jones Industrial Average: 28,323.40 -66.78 (-.24%)
S&P 500: 3,509.44 -1.01 (-.03%)
Nasdaq: 11,895.23 +4.30 (+.04%)
Russell 2000: 1,644.16 -15.89 (-.96%)
Here comes another influx of earnings. This is what we have our eyes on in the upcoming week (week of 11/9/20-11/13/20):
It's often uncomfortable when you see a company pretty much devour anything in its wake. The Walt Disney Company (DIS) is no exception, as friendly as the mouse looks. With players in all the notable corners of the entertainment industry, we're looking at a company responsible for cinema, theme parks, merchandise, and being a cultural icon for the ages. The pandemic backhanded Disney's revenue from theme parks across the face, leading to ludicrous daily losses, for a total of losses over $3 billion. It hurts just thinking about it. Layoffs are looming and business ain't booming. Seems like Disney isn't really having a zip a dee doo dah day. So how is Disney's Q3 going to look like? Well keep a close eye on its earnings and if you hold any stock, be ready to offload if it gets ugly. Remember Disney is a dividend-paying stock so they share a slice of the cake with everyone regularly.
Last 4 earnings report:
2020 Q2: beat
2020 Q1: miss
2019 Q4: beat
2019 Q3: beat
3-year total revenue
September, 2019: Higher than previous
September, 2018: Higher than previous
September, 2017: Higher than previous
3-month: ~ -1.77%
1-year: ~ -3.7%
5-year: ~ +11.47%
Disney's been looking shaky for the past year, although their gross revenue seems to indicate they're doing something right. If you sell close to the money calls on Disney while holding shares, you would net some decent profits. Check out how you can do this on our Level 1 Courses.
Until next time!
- Call to Leap Team