The Market News Today: Disney’s Q2 Earnings: Streaming into Success!

Disney Earnings Preview: Streaming, Parks, and Profitability Outlook

Disney’s Q2 earnings report is eagerly awaited, focusing on streaming subscriber growth, park visitation, and profitability outlook. After CEO Bob Iger’s reorganization and cost cuts, analysts anticipate $1.10 EPS and $22.11 billion revenue. Attention is on Disney+ growth and integration with Hulu, amid narrowing losses in the direct-to-consumer unit. With park traffic scrutinized amidst competition, Disney’s strategic moves, including a new cruise ship, may impact results positively.

Apple’s AI Chip Project ACDC Sparks Speculation

According to The Wall Street Journal, Apple’s Project ACDC aims to develop chips for AI software in data centers, with a focus on AI inference. Teaming up with Taiwan Semiconductor Manufacturing Co., Apple’s efforts are aimed at catching up in the AI race dominated by rivals like Nvidia. CEO Tim Cook hinted at an AI-related announcement, expected at the WWDC in June, amid a surge in share price following a record-breaking $110 billion share buyback announcement.

U.S. Stock Futures Hover as Dow Streaks Positively

U.S. stock futures remained nearly unchanged Tuesday following the Dow’s fourth consecutive positive day. Dow futures saw a marginal increase, while S&P 500 futures edged slightly higher and Nasdaq 100 futures dipped. Monday’s session witnessed gains across major indexes fueled by optimism over potential Fed rate cuts after April’s weaker-than-expected job growth. Despite conflicting economic data, investors await Disney’s earnings report alongside releases from UBS, BP, and Kenvue.

Treasury Yields Dip as Investors Mull Fed’s Policy Outlook

U.S. Treasury yields are declining on Tuesday as investors consider the outlook for Federal Reserve monetary policy following the latest economic data and remarks from central bank officials. At 9:32 GMT, the yield on the 10-year Treasury is down more than two basis points to 4.4610%. The 2-year Treasury yield is currently over one basis point lower to 4.8095%. Amid ongoing uncertainty over potential rate cuts, investors are weighing remarks from Fed officials and anticipating consumer sentiment insights, shaping market sentiment.

Oil Rises as Ceasefire Talks in Middle East Stall

Oil prices edged up on Tuesday as Israel’s strikes in Gaza and uncertain ceasefire negotiations maintained market tension. Despite Hamas agreeing to a ceasefire proposal, Israel’s rejection led to continued airstrikes. Brent crude futures rose by 0.3% to $83.54 a barrel, with U.S. West Texas Intermediate (WTI) crude futures up slightly at $78.49. Geopolitical tensions, alongside potential U.S. inventory reports, drive market focus amid concerns over supply disruptions.