Dow component Walt Disney Co. (DIS) fell to a 15-month low in January, continuing a major downtrend that relinquished more than 36% of the stock’s value into January. Disney+ subscription growth has slowed rapidly while churn has increased, with many viewers disappointed by mediocre programming, especially in the Star Wars and Marvel ecosystems. Cruise ships and theme parks are struggling as well while theatrical releases have missed analyst projections. The company reports Q1 2022 earnings on Wednesday evening.
Twitter Inc. (TWTR) sold off with Meta Platforms Inc. (FB) last week, testing January’s 18-month low, but got a lift after upbeat reports from Amazon.com Inc. (AMZN) and Snap, Inc. (SNAP). Given the whipsaws, expectations are low ahead of Thursday’s pre-market report, when the company is expected to post a profit of $0.34 per-share. If met, earnings-per-share (EPS) is unlikely to generate much upside because would mark a lower profit than the same quarter last year.
iShares 20+ Year Treasury Bond ETF (TLT) fell to an 8-month low on Friday while 10- and 30-year bond yields shot up to multi-month highs. This price action could signal the next wave in an inflationary spiral that sends worldwide inflation much higher in coming months. U.S. growth stocks ignored the selloff during the mixed session but correlation between higher rates and lower equity prices could easily trigger another stock market decline.
Bitcoin (BTC) rallied to a two-week high on Friday, heading into the third test of 50-day moving average resistance since the cryptocurrency broke support at that level in November. Weekly relative strength indicators have flipped into buy cycles, raising odds it will mount this barrier and head into tougher resistance near 44,000. Despite the bounce, it isn’t wise to place aggressive long-side bets at this time because monthly readings are still firmly engaged in sell cycles.
Wynn Resorts LTD (WYNN) reports Q4 2021 earnings after Tuesday’s closing bell, with analysts looking for a loss of $1.25 per-share on just $995.28 million in revenue. If met, the loss-per-share will mark a 51% improvement compared to same quarter last year. Las Vegas operations are slowly returning to pre-pandemic levels but Macao continues to struggle, due to China restrictions. However, the government has just issued guidelines for license renewal that should ease pressure on the island’s major players.
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Disclosure: the author held no positions in aforementioned securities at the time of publication.
