Disney’s Quarter, Pot Stocks, Bumble IPO: 3 Things to Watch By Investing.com

By Liz Moyer

Investing.com — After a string of record-setting sessions, stocks paused on Wednesday as Fed Chairman Jerome Powell tried to deflect inflation worries.

In a speech, the central bank chief said rising prices after the pandemic are not likely to be sustained, and that it was important to maintain the status quo on policy. 

Earnings continued to roll in mostly positive but some companies spoke about near-term challenges. General Motors Company (NYSE:GM), for example, had a better-than-expected fourth quarter but said a chip shortage affecting the whole industry could cost it $1.5 billion to $2 billion this year. Its shares fell in reaction.

The Senate’s second trial of former President Donald Trump, the only to be impeached twice while in office, continued as House managers outlined their case for conviction. 

Here are three things that could affect markets tomorrow:

1. Disney earnings

The happiest place on Earth wasn’t too happy last year, as Covid-19 forced it to close its theme parks. The movie business wasn’t so hot, either, with theaters also shut to new runs. Walt Disney Company (NYSE:DIS) solve that problem with its Disney+ streaming service, which got a big leg up with people stuck at home.

Some analysts have sounded more bullish on Disney, saying the vaccines and economic recovery will result in a boost to revenue and profit. For the fourth quarter, analysts tracked by Investing.com forecast Disney to report EPS of 33 cents on revenue of $15.9 billion.

2. Pot stocks

Cannabis is the hot topic this week in the markets, with stocks of Tilray, Canopy Growth (NASDAQ:CGC) Corp (TSX:WEED), Aphria Inc (TSX:APHA) all higher.  Reports say Tilray Inc (NASDAQ:TLRY) is now a subject of talk among the same Reddit group that boosted shares of GameStop Corp (NYSE:GME).

The Canadian pot company struck a deal this week to distribute medical marijuana in the U.K. and is also poised for growth abroad. Cannabis stocks also are getting a boost from the expectation that Democrats will push for legalization in the U.S. 

3. A dating app debut

Just in time for Valentine’s day, the dating app Bumble is geared up for its initial public offering after raising its range to $37 to $39 from $28 to $30 in a deal that could reach $1.7 billion. What else is new? Practically every recent IPO has seen a big bump on the first day of trading.

Bumble’s twist is that it allows women to make the first move and otherwise have power in their relationships. It also offers connections to platonic friends and business contacts.