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Markets Down Again, Plus Earnings for DIS, CSCO

Market activity continued its recalibration out of value stocks — boy, that was quick! — and into more palatable valuations. Both the Dow and S&P 500 fell 1% on the day, while the Nasdaq fared a little better, -0.65%. The small-cap Russell 2000, which had enjoyed relative outperformance in past weeks, took up the rear on the day, -1.64%.

With all 11 sectors of the S&P 500 down in regular Thursday trading, it’s hard to consider any of this much of a “rotation,” but perhaps more of a leveling-out of stocks that have run up big in recent sessions: today, Exxon XOM and Conoco COP fell 3%, and United Airlines UAL and JetBlue JBLU were down 4% and 5%, respectively. Zoom Video ZM, which has had a tough week after stellar recent performance post earnings, was down 4% today and -13% on the week.

The Dow and S&P 500 remain on track for weekly gains as of Thursday afternoon, though the Nasdaq is currently sizing up a weekly loss, down in three of the past four trading days. That said, markets are still up around 7% from late-October lows, which is important to keep in mind when we see volatile trading shifts and appetites from day to day.

The Walt Disney Company DIS reported big surprises on both top and bottom lines in its fiscal Q4 2020, with a loss of 20 cents per share more than tripling the expected -68 cents (though still a ways off the $1.07 per share posted in the year-ago quarter), on revenues of $14.71 billion, ahead of the $14.34 billion in the Zacks consensus. Subscribers to its Disney+ streaming service jumped past 73 million, well up from the 60.5 million reported in fiscal Q3.

While the company saw good international growth in streaming, with its Direct-to-Consumer businesses a bright spot, Disney remains broadsided by the coronavirus pandemic, particularly in its Parks and Films segments. Shares had been up by as much as 7% in late trading following the release, although the stock is still down year to date.

Cisco Systems CSCO rose 8% on its fiscal Q1 earnings report, which brought in 76 cents per share, for a 5-cent beat on the bottom line. On the top, $11.9 billion in sales was modestly ahead of the $11.88 billion in the Zacks consensus. The networking tech giant basically never misses earnings estimates; however, today’s report marks the fourth straight quarter of declining revenues.

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Exxon Mobil Corporation (XOM): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report
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