Disney (DIS) shares are trading higher today due to the company reporting better-than-expected first quarter financial results.
The company announced significant year-over-year increases in both revenue and adjusted earnings per share, exceeding analysts' estimates.
The positive financial performance is attributed to strong growth in their media and entertainment (streaming) segments, as well as a substantial increase in revenue from parks, experiences, and products.
Investors are especially embracing the increase in subscribers across Disney's streaming platforms.
Disney management also provided an upgraded outlook for its 2025 earnings per share guidance. The company now sees single-digit growth to earnings with a target of $5.17 for the year.
Shares of Disney spike more than 6% higher for the day ending just below $110.
The move above $110 completes an intermediate turnaround for the stock that has lasted more than four months.
Disney stock slipped into a short-term bear market trend in May as its 50-day moving average shifted into a declining pattern. Shares found a technical bottom at $85 in August as investors improved their outlook for the economy and consumer spending.
Today the stock crossed back above its 200-day moving average as the 50-day has also shifted back into a bullish trend.
The combination of technical strength with the company’s fundamental improvements targets a higher price target of $140.
Defense stocks like Lockheed Martin (LMT), Northrop Grumman (NOC), and Raytheon Technologies (RTX) traded lower on Thursday as investors reacted to speculation that the war in Ukraine is nearing an end.
During the election campaign, Donald Trump promised to rapidly stop the war in Ukraine if elected. Investors’ actions are now factoring that outcome into the market in several ways.
In September, Ukraine completed a $20.5 billion debt restructuring program. Following last week’s election, Ukraine’s bonds have seen a surge in activity and price as investors speculate on a conclusion to the war.
As of now, speculation suggests a likely conclusion to the war that includes a peace agreement with the loss of some land allowing the Ukrainian economy to recover quickly,
While Ukraine’s bonds move higher, the U.S. Defense stock decline. The inverse relationship is due to the drop in demand that would happen as the war concluded.
The United States has provided weaponry to the Ukraine armed forces since the onset of the war. That constant demand has helped Raytheon Technologies’ stock increase more than 40%.
Shares of Raytheon have been locked in a trading range since September as the Presidential race was heading into its final stage.
The stock surged over the last week as the Trump Administration signaled support for Israel, however those gains were erased with Thursday’s decline.
While shares of Raytheon remain in a long-term bull market trend, the stock is likely to continue its decline to technical support at $110.
Shares of EV manufacturer Tesla (TSLA) fell 5% on Thursday along with other companies from the EV industry.
Selling pressure on the stock came to bear as headlines from Washington combined with an overbought technical situation.
Word came from Washington D.C. this morning that the Trump transition team is already planning to kill the $7,500 consumer tax credit program for electric vehicles. The cuts are part of a larger plan the team plans to launch for broad tax-reform legislation.
Telsa CEO Elon Musk has previously voiced support for ending the government supported subsidy of the industry.
Timing of the planned cuts comes as the U.S. EV industry has experienced widespread declines in demand for vehicles. Both General Motors (GM) and Ford Motor Company (F) have slowed production of their EV models as both companies prepare to expand development of hybrid vehicles.
Last month, General Motors announced that sales of the company’s EV models in China had outpaced internal combustion engine (ICE) models sales for the first time. Both General Motors and Ford continue to develop EV models for the growing Chinese demand.
Tesla shares have seen a 45% spike in prices since last week’s election results. The stocks has been the target of speculators that believe the incoming Trump Administration may fast track autonomous vehicle regulations which could benefit Tesla’s robotaxi program.
Shares of Tesla peaked at short-term overbought levels last Friday as the stock hit $350. That round-numbered resistance along with overbought conditions has resulted in a 12% decline since.
Investor enthusiasm towards the stock is likely to continue into 2025 as its 50-day moving average forecasts higher prices over the intermediate-term outlook.
Tesla stock is likely to continue its decline until the stock reaches $300. That round-numbered price will likely draw sellers into the name completing a healthy correction from its highs.
Tesla stock remains in a long-term bull market with a price target of $450.
