Please ensure Javascript is enabled for purposes of website accessibility

What Happened in the Stock Market Today

By Steve Symington – Aug 7, 2019 at 4:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

See why Disney dropped and Match Group popped on a wild day for the broader markets.

After starting the session deep in negative territory, major benchmarks largely recouped their early losses to close mixed on Wednesday as investors digested surprise rate cuts from the central banks of Thailand, New Zealand, and India. The moves were largely viewed as a broader indication of growing concern about a potential global economic slowdown.

The Dow Jones Industrial Average (^DJI -1.54%) posted a modest decline, while the S&P 500 (^GSPC -2.11%) managed to close up slightly.

Today's stock market

Index Percentage Change Point Change
Dow (0.09%) (22.45)
S&P 500 0.08% 2.21

Data source: Yahoo! Finance.

As for individual stocks, Dow component Walt Disney (DIS -1.96%) fell after announcing weaker-than-expected quarterly results, while Match Group (MTCH) soared following its impressive Q2 report.

Stone bull and bear figures with a dark gray background

Image source: Getty Images.

Disney deals with growing pains

Shares of Disney fell 4.9% after the iconic entertainment conglomerate told investors its second-quarter revenue increased 33% to $20.25 billion, translating into a 28% decline in adjusted net income to $1.35 per share. Most analysts were modeling higher earnings of $1.75 per share on revenue closer to $21.47 billion.

Chairman and CEO Bob Iger blamed the miss on Disney's integration of its $71 billion acquisition of most the assets of Twenty-First Century Fox, which only just closed in March. In particular, Disney suffered from the relative underperformance of Fox's film studios, including the box office bomb that was X-Men: Dark Phoenix, as well as losses at Star India. In total, Fox had a greater-than-expected negative $0.60-per-share impact on Disney's earnings. 

Meanwhile, it seems an understatement to say Disney's legacy studios performed well, setting a new industry record with more than $8 billion in total box office sales so far in 2019, driven by its slate of Marvel, Pixar, and Disney films. Disney is also gearing up for the November launch of its new Disney+ video-streaming service, which will start at $6.99 per month, or $69.99 for a year. Disney+ will also be available in a bundle with ESPN+ and ad-supported Hulu for $12.99 per month.

Investors swipe right on Match Group

Match Group stock soared 24.2% after the dating products leader delivered impressive second-quarter results. Revenue climbed 18% (or 22% in constant currency) to $498 million, helped by an 18% increase in average subscribers to 9.1 million and modest growth in average revenue per user (up 2% to $0.58). Those gains were led by the company's popular Tinder app, which saw average subscribers soar more than 40% year over year to 5.2 million.

On the bottom line, Match Group's net earnings attributable to shareholders declined 3% to roughly $128 million, or $0.43 per share. But analysts, on average, were only expecting earnings of $0.40 per share on revenue of $489 million. 

What's more, Match Group expects third-quarter revenue between $535 million and $545 million, good for growth of 21.6% at the midpoint and above estimates for around $521 million.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
$97.45 (-1.96%) $-1.95
Match Group, Inc. Stock Quote
Match Group, Inc.
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$29,225.61 (-1.54%) $-458.13
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,640.47 (-2.11%) $-78.57

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.