News of the day for November 14, 2024
Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images
Disney(DIS) shares jump after sales and adjusted earnings topped expectations; Figures on the producer price index (PPI) for October are known; Supermicrocomputer (SMCI) shares plummet after server marker again delays filing its financial reports; Cisco systems (CSCO) shares fall after the networking giant reported falling profits and revenue; The International Energy Agency (IEA) is raising its oil demand growth forecasts for 2024, while downgrading its 2025 outlook based on weak demand from China. US stock futures are little changed, but the dollar continues to rise against the euro, pound and yen after the election. Here’s what investors need to know today.
Shares of the Walt Disney Company (DIS) rose 9% in premarket trading after the media giant reported revenue and adjusted earnings that topped analyst estimates. The company reported revenue of $22.57 billion, up from $21.24 billion last year and narrowly above the $22.50 billion analysts expected, according to Visible Alpha. After taking into account about $1.5 billion in one-time costs such as restructuring costs, Disney’s adjusted earnings per share (EPS) came in at $1.14, just above estimates of $1.11. Disney’s streaming business posted an operating profit of $253 million after booking a profit for the first time last quarter.
Following yesterday’s release of the Consumer Price Index (CPI), investors will look for the 8:30 a.m. ET release of the wholesale-focused Producer Price Index (PPI). Economists surveyed by The Wall Street Journal And Dow Jones Newswires forecast that wholesale prices rose 0.2% in October from the previous month. The report comes as the CPI showed consumer-level inflation was higher last month. Federal Reserve officials cut interest rates by a quarter point last week. Economists expect the central bank to continue austerity for the foreseeable future, as long as inflation remains under control and the labor market is resilient.
Supermicrocomputer (SMCI) shares plunged 11% in premarket trading after the server maker said it would delay the filing of its first-quarter financial report. The postponement comes after the company said in October that it could not predict when it would file its 2024 annual report, a requirement it must meet to comply with Nasdaq listing rules. The delays in the company’s reporting follow the resignation of its accountant EY last month, which previously exposed problems with the server maker’s corporate governance and internal controls.
