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Stock Market News: Disney on Deck; Will Bezos Sales Hurt Amazon?

By Dan Caplinger – Aug 6, 2019 at 11:20AM

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Wall Street bounced a bit Tuesday morning after a tough session yesterday.

The stock market managed to get a slight rebound on Tuesday morning, making up for a small portion of the massive losses that it suffered on Monday. Volatile expectations about trade negotiations are keeping investors on their toes. As of 11 a.m. EDT, the Dow Jones Industrial Average (^DJI) was up 70 points to 25,788. The S&P 500 (^GSPC -1.02%) rose 13 points to 2,858, and the Nasdaq Composite (^IXIC) gained 50 points to 7,776.

Even as geopolitical issues heat up, earnings season keeps moving forward, and Walt Disney (DIS -0.75%) will report its latest results this afternoon. Meanwhile, some investors are nervous about the stock sales that Amazon.com (AMZN -0.54%) founder and CEO Jeff Bezos has made over the past week and what they might say about the e-commerce giant's prospects.

Disney gets ready

Shares of Walt Disney were up 1% as investors got ready to hear the latest from the House of Mouse when it releases its fiscal third-quarter financial report this afternoon. The entertainment giant has made a host of strategic moves aimed at fostering growth, and those watching the stock will want to see whether there are any early signs of success from those efforts.

Disney World with characters from Elena of Avalor.

Image source: Disney.

On the movie front, Disney will undoubtedly have a blockbuster quarter. Between Avengers: Endgame, Toy Story 4, Captain Marvel, and the release of the new live-action Aladdin, the company will see record-breaking results at the box office.

Yet what's less certain is how Disney will perform in other respects. The acquisition of Fox's television and movie studio assets should have a positive impact, but investors will want to see how the combined company's reorganization works out. Some industry watchers are nervous about theme park attendance trends, and Disney's media network presence has been going through transition. But even though those factors could all weigh on the bottom line, most long-term investors will keep their eyes focused squarely on the long game for the entertainment titan.

Ups and downs for Disney are inevitable. Yet the company's resiliency has been noteworthy even in the face of industry disruption, and it's hard to bet against the animation giant's ability to weather storms and emerge stronger than ever.

Bezos raises cash

Shares of Amazon.com were up a fraction of a percent Tuesday morning, regaining a bit of ground after a tough Monday. Not only did the e-commerce giant's stock fall in the overall market swoon, but many shareholders questioned whether the company founder's big stock sales reflected a loss of confidence in Amazon.

Bezos has made several filings with the U.S. Securities and Exchange Commission detailing substantial sales of Amazon stock. They include sales of about 209,000 shares on Aug. 2, 323,000 shares on Aug. 1, and roughly 322,000 to 323,000 shares each day on July 29, 30, and 31. All told, the sales have raised close to $3 billion for the Amazon founder.

What Bezos plans to do with the money isn't entirely clear. The Amazon CEO has said that he intends to fund his Blue Origin space company with capital generated by selling shares, and that'll take significant amounts of money to realize its full potential. At the same time, it's possible that Bezos will use cash for personal reasons as his lifestyle changes.

Big insider sales are always scary, but these shouldn't come as a surprise to Amazon investors. Even with the selling, Bezos remains committed to Amazon both personally and financially, and the stock moves shouldn't affect the company.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dan Caplinger owns shares of Walt Disney. The Motley Fool owns shares of and recommends Amazon and Walt Disney. The Motley Fool has the following options: long January 2021 $60 calls on Walt Disney and short October 2019 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$120.30 (-0.54%) $0.65
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$100.04 (-0.75%) $0.76
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$30,273.87 (%)
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$3,744.52 (-1.02%) $-38.76
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$11,148.64 (%)

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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