5 things you should know before the stock market opens

Walt Disney Co. (DIS) reported third-quarter revenue and profit above analyst estimates; Novo Nordisk (NVO) shares fell in premarket trading after the maker of weight-loss drugs Ozempic and Wegovy missed second-quarter earnings and cut its operating profit forecast due to supply shortages; CVS Health (CVS) shares fell after a second-quarter revenue miss and another cut to its full-year profit forecast; global markets rebounded after the Bank of Japan calmed investor fears about the fading appeal of the carry trade, saying it would not raise interest rates while capital markets were “extremely volatile”; and Super Micro Computer (SMCI) shares slumped after the server company, which also announced a 10-for-1 stock split, reported results that missed analyst estimates. U.S. stock futures are rising after major indexes staged a broad-based rebound on Tuesday, a day after posting their biggest declines in nearly two years. Here’s what investors need to know today.

1. Disney reports above-average sales and profits in the third quarter

The Walt Disney Co. (DIS) reported third-quarter results that beat Wall Street estimates, boosted by box office hits like “Inside Out 2,” while the company’s streaming business turned a profit for the first time. For the three months through June, the entertainment giant, which is raising streaming prices for Disney+, Hulu and ESPN+ starting in October, reported revenue of $23.2 billion and diluted earnings per share of $1.43, beating consensus forecasts from analysts surveyed by Visible Alpha. “This was a strong quarter for Disney, driven by excellent results in our entertainment segment at both the box office and directed-to-consumer. We turned a profit for the first time in our combined streaming businesses and were a quarter better than our previous forecast,” said Chief Executive Officer (CEO) Bob Iger. Disney shares were little changed in premarket trading.

2. Novo Nordisk falls due to Q2 failure, forecast lowered

Novo Nordisk (NVO) shares fell 3% in premarket trading after the maker of weight-loss drugs Ozempic and Wegovy reported lower-than-forecast second-quarter revenue and cut its 2024 operating profit forecast due to “periodic supply constraints and related reports of drug shortages in various regions.” The Danish pharmaceutical company reported a 25% year-on-year increase in revenue to 68.06 billion Danish kroner ($9.96 billion), missing estimates of 68.47 billion DKK. Novo Nordisk cut its full-year operating profit forecast, predicting growth of 20%-28% at constant exchange rates, from the previous forecast of 22%-30%, although it raised its 2024 revenue range to 22%-28% from 19%-27%.

3. CVS again lowers full-year profit forecast; Aetna president resigns

CVS Health (CVS) shares are down slightly in premarket trading after the pharmacy giant again cut its 2024 earnings forecast amid rising medical costs and announced the departure of the head of its Aetna unit. CVS reported second-quarter revenue of $91.23 billion, below forecasts, but earnings per share (EPS) of $1.41, above expectations. It also lowered its 2024 EPS forecast for the third quarter in a row, from at least $5.64 to $4.95 to $5.20. The company also said that “based on current performance and outlook for the health benefits segment,” Aetna President Brian Kane is leaving the company and CVS CEO Karen Lynch will take over as CEO of the company, overseeing it alongside Chief Financial Officer (CFO) Tom Cowhey.

4. Global stocks rise as Japan’s central bank refuses to raise interest rates amid volatility

Japan’s Nikkei closed higher on Wednesday, Europe’s leading index Stoxx 600 gained and US stock futures rose after the Bank of Japan calmed investors’ fears of a carry trade unwind and said it would not raise interest rates as long as capital markets were “extremely volatile”. Fears of a reversal of the carry trade were cited as a factor fueling Monday’s global stock market slump, along with concerns about a recession in the US and excessive spending by technology giants on artificial intelligence (AI).

5. Super Micro Computer collapses due to profit losses and unexpected margin decline

Super Micro Computer (SMCI) shares are down 14% in premarket trading after the server company reported quarterly results that missed analysts’ expectations, issued a low profit forecast and disclosed a surprise decline in adjusted gross margin as costs of switching to more expensive artificial intelligence (AI) chips weighed on the bottom line. The company also announced a 1-for-10 stock split that will take effect on October 1.