Markets

Disney earnings, Iowa results, Chipotle reports: 3 things to watch on Tuesday

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Here are the most important things to know about Tuesday before you hit the door.

1. Disney+ in focus during earnings report

Disney reports quarterly earnings after the bell on Tuesday. Analysts polled by FactSet are expecting the media giant to report earnings per share of $1.46, compared to the $1.84 earned in the same quarter the year prior. Revenue is forecast to come in at $20.783 billion, topping the $15.303 billion earned a year ago.

The quarter being reported, which ended in December, includes the launch of Disney's new streaming platform Disney+, which competes with platforms like Netflix, Amazon Prime Video and Apple TV. Disney signed up 10 million subscribers on its first day, but the media company has a long way to go to eclipse streaming pioneer Netflix's hundreds of millions of subscribers.

"On average investors expect that the service had attracted 25 million paid domestic subscribers at calendar year-end," Guggenheim analyst Michael Morris said in a note to clients.

Shares of Disney are about flat over the past six months and down 2% for 2020 so far.

2. Iowa caucus results and State of the Union

Amid a busy week in politics, with the Senate impeachment trial and Iowa caucus, President Donald Trump will deliver the 2020 State of the Union address on Tuesday evening to a joint session of Congress.

Trump will likely address the robust U.S. economy, after a strong year of stock market gains in 2019. However, the Commerce Department said last week the economy grew 2.3% in 2019, below the 2.9% increase from 2018 and the 2.4% gain in 2017. Trump will also likely touch on phase one of the U.S.-China trade deal.

If results show Sen. Bernie Sanders had a strong showing in Iowa Monday, the markets could get spooked.

Final arguments of Trump's impeachment trial took place on Monday and a final vote on whether to convict or acquit Trump on charges of abuse of power and obstruction of Congress will take place on Wednesday.

Trump's last State of the Union address was delayed due to a partial government shutdown — the longest in U.S. history — which occurred because of a deadlock between Congress and the White House over funding for a wall on the Mexican border.

3. Chipotle set to report

Fast-food Mexican chain Chipotle reports quarterly earnings after the bell on Tuesday. Wall Street is forecasting earnings per share of $2.76 on revenue of $1.403 billion, according to FactSet. Chipotle reported earnings per share of $1.72 on revenue of $1.225 billion in the fourth quarter a year ago.

Same store sales are expected to grow 9.8%, after growing 4.4% in the same quarter a year prior. Digital sales will also be in focus.

"We have become increasingly optimistic that the September launch of Carne Asada drove more than just a short-term bump in sales," Baird senior research analyst David Tarantino said in a note to clients.

Shares of Chipotle are up about 10% in the past six months.

Major events (all times ET):

10:00 a.m. Factory orders

9:00 p.m. State of the Union

Major earnings:

Simon Property Group (before the bell)

BP (before the bell)

ConocoPhillips (before the bell)

Cummins (before the bell)

Sony (before the bell)

Clorox (before the bell)

Ralph Lauren (before the bell)

Royal Caribbean (before the bell)

Disney (after the bell)

Ford (after the bell)

Chipotle (after the bell)

Snap (after the bell)

Chubb (after the bell)

Gilead Sciences (after the bell)

Seagate Technology (after the bell)

— with reporting from CNBC's Michael Bloom.