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Dow Jones Today: Futures Inch Higher as Fed Meeting Begins

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Disney to Invest $60 Billion in Parks and Cruises in the Next Decade

51 minutes ago

The Walt Disney Co. (DIS) said in an SEC filing Tuesday it will nearly double its investment in its parks and experiences business over the next decade, bringing total capital expenditures at its vacation destinations to $60 billion. 

Disney’s parks have been a boon for the company as it has struggled to adapt to a changing entertainment environment dominated by streaming services. The parks and experiences division recorded double-digit revenue and net income growth in the most recent quarter, while Disney Media’s sales and earnings contracted.

Shares of the entertainment giant fell nearly 4% in early trading Tuesday.

Instacart Jumps in the Ring with $30 Per Share IPO

3 hr 58 min ago

Instacart set a price of $30 a share for its initial public offering today, valuing the grocery delivery company at just under $10 billion. 

The company had forecast a price between $28 and $30, a range it boosted last week after shares of Arm Holdings Plc (ARM) gained about 25% on their first day of trading. Arm raised nearly $5 billion in its IPO, making it the year’s largest debut despite its relatively conservative pricing. 

Instacart has taken a more aggressive pricing strategy, but its valuation still pales in comparison to the $39 billion valuation it secured at the height of the pandemic.

Scaled-back ambitions aside, Instacart’s listing today could encourage even more companies to go public later this year and put wind in the sails of marketing automation company Klaviyo and German shoemaker Birkenstock, both of which are set to IPO in the coming weeks. 

Stocks Making the Biggest Moves Premarket

4 hr 42 min ago

Gainers:

  • Stellantis NV (STLA): Shares of the carmaker gained more than 2% after the United Auto Workers (UAW) threatened to widen their strike against it and peers General Motors (GM) and Ford (F). 
  • Royal Caribbean Group (RCL): The cruise operator’s shares rose almost 2% after analysts at Trust upgraded its outlook for the cruise sector and upgraded Royal Caribbean to buy from hold. Carnival Corp. (CCL) also gained nearly 2%. 
  • U.S. Steel Corp. (X): Shares of the steel maker climbed 1% after it said it expected to earn between $1.10 and $1.15 a share this quarter, down from last year. The company had expected earnings to take a hit from the United Auto Workers strike launched last week.

Losers:

  • Rocket Lab USA Inc. (RKLB): Shares of the aerospace company lost 18% after a satellite launch failed, its first in over two years. 
  • Nio Inc. (NIO): The electric car maker’s stock fell about 7% after it announced a $1 billion convertible bond offering.
  • Arm Holdings Plc (ARM): The chip designer’s shares fell 4%, continuing their slide after jumping 25% in their first day of trading last week. Arm is set to open around $56, just 9% above its IPO price. 

5 Things to Know Before Markets Open

5 hr 7 min ago

Here’s what investors need to know to start their day:

  1. Grocery delivery company Instacart, which is set to begin trading on the Nasdaq under the symbol “CART,” priced its IPO at $30 a share, valuing the company at about $10 billion.
  2. Alphabet’s (GOOGL) Google rolled out new features for its Bard artificial intelligence (AI) chatbot including the ability to fact-check its answers and analyze user’s personal data on Google.
  3. Chinese electric vehicle maker NIO (NIO) said it would offer to investors $1 billion in convertible bonds, which can be turned into company shares, but could also dilute the value of existing shares of the stock.
  4. Online clothing service Stitch Fix reported a 22% drop in revenue as the company’s active client base fell to 3.3 million, down from 3.4 million the prior quarter and 3.8 million from the same period a year ago.
  5. Housing starts fell to 1.28 million in August from 1.45 million in July, a larger drop than economists expected. But building permits, a forward-looking indicator, rose 7% from July to 1.54 million.

-Terry Lane

Futures Inch Higher as Investors Anticipate Fed Meeting

5 hr 35 min ago

Futures contracts connected to the Dow Jones Industrial Average were up less than 0.1% in premarket trading.

S&P 500 futures took a similarly small step up.

Nasdaq 100 contracts were flat.