US stocks fell on Wednesday as weak earnings reports from Walt Disney, Macy's and Fossil reverberated across the consumer sector. Disney shares were down 4.5 per cent at $101.82 after the company posted a rare earnings miss. The stock was the biggest drag on the Dow, accounting for about 33 points of the index's 80 points fall. Department store chain Macy's tumbled 12 per cent to $32.58, while Fossil sank as much as 34 per cent to a six-and-a-half year low of $26.51 after the two companies slashed their full-year forecasts.
The US election this Tuesday is the main focus of the week. The key economic release this week is University of Michigan consumer sentiment on Friday. There are several scheduled speaking engagements from Fed officials this week.
After Friday's Jackson Hole repricing of Fed hike expectations, which made it clear that the fate of a September (and perhaps December) rate hike is now in the hands of the August payrolls number, the main risk event of the week is therefore this Friday's US NFPs for which consensus expects a reading of 180K, down from last month's 217K print, leaving 3m trend at 242K. A number substantially above this will make a September hike virtually certain, and potentially risks roiling markets as good news will likely be bad news this time around.
By Charles Margolis:
I hope we never lose sight of one thing: it was all started by a mouse. - Walt Disney (October 1954)
Walt Disney Company (DIS) stock is up 50 percent since last October's 52 week low of 29.00 dollars a share. The company reports earnings Tuesday, May 8th 2012.
After last week's central bank and GDP fireworks, we have another busy week on deck culminating with Friday's jobs report.
This morning in Europe the early focus is on the final revisions to those July manufacturing PMI’s, along with a first look at the data for the periphery. Shortly we will provide a full breakdown of global PMI by country. Today we’ll also get the manufacturing PMI in the US which is then closely followed by the ISM manufacturing for July, along with construction spending data.
Space Mountain at Walt Disney World in Orlando is one of the most nostalgic rides in America. Originally conceived by Walt Disney himself, the project was put on hold indefinitely after his death in 1966. The attraction was eventually given the green light in the '70s, and astronaut Gordon Cooper joined the creative team to help make the roller coaster seem more like an actual space flight.
ByFusion Research:Walt Disney (DIS), the largest operator of theme parks and resorts and owner of ESPN, reported total revenue of $11.58 billion up 4% from the previous year in its third-quarter results.