Why Disney Shares Are Tumbling After Iger’s Comments (VIDEO)
Walt Disney Co. Chief Executive Officer Bob Iger said earnings in 2017 will be “roughly in line” with last year, disappointing investors who sent the stock tumbling as much as 3.9 percent. Bloomberg Intelligence’s Paul Sweeney has more on “Bloomberg Technology.” (Source: Bloomberg)
Disney Shares Tumble on Iger’s 2017 Earnings Forecast
Walt Disney Co. (DIS ) CEO Bob Iger warned that the company’s fiscal 2017 would be a reset year. Yet investors have been holding out for a good-news surprise. On Thursday, Sept. 7, they didn’t get one.
Iger told an investor gathering hosted by Bank of America Merrill Lynch that earnings for the year ended Sept. 30 would be “in line” with last. A similar finish for Disney’s 2017 would translate into an earnings increase of about 3.2%.
Despite Iger adding that 2018 will be stronger than 2017, shares were tumbling 3.9% Thursday to $97.58, extending the stock’s 2017 decline to 6.3%. The benchmark S&P 500 index has gained nearly 10% this year. Iger’s underwhelming forecast prompted 21st Century Fox Inc. (FOXA – Get Report) to drop 3.7%, CBS Inc (CBS) to fall 3.5% and AMC Networks Inc. (AMCX – Get Report) to lose 3.4%
Disney to Include ‘Star Wars,’ Marvel on New Streaming Service
Walt Disney Co. DIS -4.37% intends to offer its Marvel and “Star Wars” properties through the subscription video service it is planning to launch in 2019, rather than renewing a deal with Netflix Inc., NFLX -0.14% according to Chief Executive Robert Iger.
Disney said last month it would launch its own on-demand service in late 2019, on which it would offer animated and live-action family films that currently stream on Netflix after they run in theaters and are sold on DVD and in digital stores such as Apple Inc.’s iTunes.
However, Mr. Iger said at the time Disney wasn’t certain whether the company would include Marvel and “Star Wars” movies on its own service or continue to license them to Netflix.
Today's Trading Lesson
Consistent Trading Profits and Your Game Plan
What is your day trading plan with the $VIX at 17 versus 12? Are you adjusting share size and stop-loss areas to compensate?
What about adjusting your list of stocks to trade? Are you losing money day trading a dead industry? What is your plan to adjust into a new list?
What about stocks in the news? Can you handle a day trade in a stock with a news catalyst? The rewards can be great but the risk is just as big if you are slow to react.
The Chinese stocks are in play right now. How would you trade them?
Your best, next move, could be adding to an existing position or it could be initiating your first entry in a tiered structure. This is how hedge funds allocate money. They never open an entire position at once and neither should you. Not only does this method put tremendous pressure on you (to find the perfect entry), it is simply bad math.
You never want your full position unless a trade has started to move in the intended direction. There are old-school day traders that will tell you to initiate a full position as close to a definitive stop loss position as possible, but those are ideas from a different generation.
The days of a specialist, floor broker or pit trader as the dominant force handling retail orders are gone. The odds of your stop-loss being triggered near a significant number are great. To succeed in today’s market, you need to plan multiple entries.
Perfect timing isn’t necessary.
On the Tape Today | 9-8-17
JPM-JP Morgan Chase traded out of an inside day after a previous bearish candlestick. Looking to start a new swing trade short using an $88.25 sell stop. Expecting minor support @ $86.
If the general stock market breaks down I am game planning to add to the position with an ultimate target to cover the short sale at $82.50. If the stock market trades to new highs. I will trail an aggressive stop and not add to the position. Stop loss on a close above $89.50
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Stock Market Sector Perfomance
Stocks to Trade | Friday Edition 9-8-17
Bullish Momentum: RH, ABBV, HTZ, BMY, WB, TTWO, TRIP, GILD, ATVI, BIDU, CSX
Bearish Momentum: exel, nwl, dis, aaoi, mnk, ual, rspp, cbs, pnc, aap
Bullish Order Flow: HTZ, JUNO, WB, CAR, GILD, TRIP, TTWO, DLTR, BABA, ATVI, EA, ADBE, MA, CELG, AMGN, UNH, AAPL
Bearish Order Flow: fl, aap, ual, fnsr, nwl, pnc, cof, khc, apc
Double Normal Volume: DD, DIS, BMY, NWL, ABBV, RH, EXEL, FNSR, MA, CBS
Inside Day: baba, x, qcom, aal, momo, slb, unp, fl, ntap, cl, cci
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