Dow to Climb to 21,860
Despite a relatively flat market, our expert thinks the Dow will climb to 21,860 before a market correction.
The top stocks to watch today (Wednesday, May 10) are Yelp Inc. (NYSE: YELP), Walt Disney Co. (NYSE: DIS), and Nvidia Corp. Nasdaq: NVDA).
Earnings reports are going to be the big driver of the markets today. This morning, one of the stocks to watch is already down 27%.
Here are the three top stocks to watch today and why they are in focus today...
Top Stocks to Watch Today: Yelp Inc. (NYSE: YELP)
Yelp stock is down 27% in early morning trading after posting its quarterly earnings report.
The review site announced that January and February saw local advertisers leave the site. Yelp had 143,000 advertising accounts during the quarter, below the expected 144,000 accounts. After the miss on advertising accounts, the company announced that it will emphasize business accounts instead.
With that, the company downgraded its full-year expectations for the second time. Originally, the company expected revenue to be $1 billion for the year. Now, the company expects revenue between $850 million and $865 million. Last quarter, the company expected revenue for the year between $880 million and $900 million.
This quarter, Yelp announced revenue of $197.3 million, which is below the expected $198 million.
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However, earnings did beat expectations. Adjusted EPS was $0.19, while expectations were $0.04.
YELP is currently trading at $34.70 for a loss of 9% year to date (YTD).
Top Stocks to Watch Today: Walt Disney Co. (NYSE: DIS)
Disney stock is down 2.6% after announcing further declines in cable network income.
The entertainment company's operating income from cable networks decreased 3%. The decrease in ESPN subscribership was partially offset by increases in subscribership to the Disney channels.
Disney reported adjusted EPS of $1.50. Analysts expected EPS of $1.41.
The company had sales of $13.336 billion for the quarter, up from $12.969 billion for the same quarter last year.
DIS stock is currently trading at $112.07 for a gain of 7.5% so far this year.
Top Stocks to Watch Today: Nvidia Corp. (Nasdaq: NVDA)
Nvidia stock is up 12% in early morning trading after announcing its earnings.
The graphics processing unit (GPU) company saw revenue grow 48% for the quarter over the same time period last year. This quarter, the company had $1.94 billion in revenue, while last year it had only $1.31 billion.
Earnings have expanded 126% over last year. The company announced GAAP EPS of $0.79 this quarter. Last year, earnings were $0.33 per share.
The company also announced that it intends to distribute quarterly dividends as well as a stock buyback program. The total return to investors will be $1.25 billion.
NVDA stock is trading at $102.94 for a loss of 3.6% YTD.
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