The Dow Jones Industrial Average and other stock indexes continued to rise on Tuesday, benefitting from a recent rally driven by hopes for interest rate cuts.
Disney and Palantir stock declined sharply on earnings, while Peloton stock popped on a potential buyout
The Dow Jones Industrial Average and other stock indexes continued to rise on Tuesday, benefitting from a recent rally driven by hopes for interest rate cuts.
By the end of the day, the Dow was up 32 points, or about 0.1%, to close at 38,884. The S&P 500 rose 0.1%, and the Nasdaq $NDAQ dipped 0.1%.
The Walt Disney $DIS Co.’s streaming business may not yet be profitable, but the entertainment giant is inching toward its goal. The Burbank, California-based company reported an $18 million operating loss in its fiscal second quarter for its direct-to-consumer division, which includes Disney+, Hulu, and ESPN+. That’s down from a $216 million loss in Disney’s last quarter and a $659 million loss year-over-year.
Disney stock was down more than 9% by closing time.
The stock of Palantir $PLTR Technologies fell Tuesday morning as investors were unimpressed by its outlook for annual sales. The defense tech company’s stock was down more than 15% by the end of the day.
In its latest earnings report posted Monday, the company beat analysts’ revenue expectations, citing demand by U.S. companies for its bootcamps and technology products.
But the company forecasted a decrease in revenue for the current quarter, estimating between $649 million to $653 million. That’s lower than the $653 million that analysts were expecting. Additionally, the company projected full-year revenue between $2.68 billion and $2.69. billion, weaker than Wall Street analysts’ estimates of $2.71 billion.
Tesla $TSLA has less than two months to respond to inquires from U.S. auto safety regulators about its December recall of more than 2 million electric vehicles. The National Highway Traffic Safety Administration (NHTSA) has given Elon Musk’s electric vehicle maker a July 1 deadline to answer a series of questions related to the recall, which was issued over a safety issue in the Autopilot driver assistance software.
Tesla stock was down over 3% as the day ended.
Peleton stock rose more than 15% by closing time. A number of private equity firms have been considering a takeover of the at-home fitness company, CNBC reports.
Last week, the company reported lower revenues and started layoffs as the CEO departed. Peleton has seen 13 straight quarters of losses.
–William Gavin and Britney Nguyen contributed to the article
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