Stocks in the News: Disney, Morgan Stanley, Intel
The Walt Disney Co. (DIS) reported quarterly results late Tuesday with revenue and net beating analysts' expectations, thanks to blockbuster Alice in Wonderland. Disney also says it plans to launch two Korean-language Disney channels in South Korea in a joint venture with SK Telecom. Shares fell over 3% ahead of the bell.
Morgan Stanley (MS) is under federal investigation over whether the bank misled investors about mortgage-derivatives deals it helped design and sometimes bet against, according to the Wall Street Journal. CEO James Gorman denied allegations that the bank misled investors about mortgage derivatives it sold them, Bloomberg reports. Shares fell 3.6% in premarket trading.
Macy's (M) reported Wednesday it returned to profitability in the first quarter as sales grew by 7% and the all important same-store sales rose 5.5%. While results were generally inline with estimates, shares fell as the company didn't raise its outlook for the year because of economic uncertainty.
Intel Corp. (INTC) CEO Paul Otellini said Tuesday that the company's revenue and earnings per share should increase in the low double digits over the next few years on the strength of personal computer sales because of rising demand for its chips in PCs and other gadgets. Shares rose 1% before the bell.
Deutsche Telekom AG (DT) on Wednesday reported a better-than-expected profit for the first quarter of 2010 even as sales dropped 0.6% to euro15.8 billion. Last year, DT reported a loss due to a wrote off of its T-Mobile UK unit.
ING NV (ING) returned to profit in the first quarter as its banking arm enjoyed good retail margins and fewer losses on bad loans. Shares jumped nearly 6% in premarket action.
Electronic Arts Inc. (ERTS) reported late Tuesday it swung to a profit in the fourth-quarter on strong sales of some of its video games. But the company's forecast, which was inline with expectations, still disappointed some and shares sank 4% in after-hours trading.
Google (GOOG) and Verizon Wireless, a joint venture of Verizon Communications (VZ) and Vodafone Group (VOD), are working on a tablet device to rival Apple's (AAPL) iPad, Verizon Wireless CEO Lowell McAdam told the Wall Street Journal on Tuesday.
Reporting Wednesday are Cisco Systems (CSCO) and Whole Foods Market (WFMI), among others.
PepsiCo (PEP) was upgraded to conviction buy from buy at Goldman Sachs.