Five Things to Watch: Disney Earnings and More
Following an up day for markets, plenty to scrutinize Tuesday: from private share markets to Google's growth model, Chipotle's immigration problems to the health of the real estate market. Here's what we're watching...
All Ears for Disney: Analysts anticipate a mixed bag when Disney reports quarterly numbers after the market close Tuesday. On the one hand, continued growth in advertising revenue for ESPN and ABC should be a strong driver. On the other, declines are expected at the renowned movie studio and the company's Tokyo theme parks have been partially closed since the March 11 quake. The consensus forecasts that it will add up to earnings of 56 cents per share, as the media giant's stock trades within touching distance of an all-time high — up nearly 200% from March 2009 lows.
Designs of a Double Dip: Two adjoining duplex apartments at the legendary 740 Park Avenue address are set to hit the market for a combined price tag of $60 million. For most of us, that's a little steep... and, unfortunately, the ultra high-end New York market is one of the only places for optimism in the ultra depressed American housing market. On Tuesday, the National Association of Realtors kicks off its mid-year conference, where industry professionals are coming to grips with real estate's feared double dip.
Private Markets, Public Scrutiny: House Oversight Committee Chairman Darrell Issa digs into the sometimes confusing world of private share markets with a hearing on "the Future of Capital Formation" Tuesday. SEC Chair Mary Schapiro and SecondMarket CEO Barry Silbert lead the list of witnesses, with reports swirling that the latter has asked the former for approval on
appropriate industry practices. The issue serves as a microcosm for the new frontier for the seemingly unregulated world of private share exchanges, which enable transactions in hot names like Facebook, Twitter and LinkedIn.
Developing Google: Thousands of developers will attend the two-day "Google I/O" event in San Francisco, which will focus on the next generation of web, mobile and apps. Since last year's event, the company has fought a growing perception of stagnance with a C-suite shakeup that hasn't helped languishing shares. The challenges Google faces are myriad, as it tries to grow revenues from mobile and expand beyond its traditional search ad dominance.
Chipotle's Immigration Concern: Fresh off his success on the national security front, President Obama travels to El Paso, Texas, for a Tuesday speech on immigration reform. When it comes to the issue of immigration, no company finds itself more squarely in the public crosshairs than Chipotle . The seemingly unstoppable fast food chain has run into a few headwinds of late, from reported shortages of natural chickens to a major criminal immigration investigation of its hiring practices. Shares in Chipotle have held strong despite investor concerns. That could change if significant enforcement actions are announced.