What Disney needs to deliver to fend off Peltz board fight
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. 1. U.S. stocks climbed higher Wednesday as investors digested more corporate earnings releases. The Nasdaq was up 0.7%, leading gains among the three stock benchmarks. The S & P 500 and blue-chip Dow jumped 0.65% and 0.4%, respectively. Jim Cramer said Wednesday investors should be cautious of the surge though. There’s a record $42 billion 10-year Treasury auction later. 2. Ford shares were up after reporting solid quarterly results Tuesday evening. The carmaker posted an earnings beat and delivered a stronger-than-expected outlook. Guidance was highlighted by sizable cost reductions and better profits from its commercial car business. The quarter was a much-needed reprieve after an increase in costs last year associated with the UAW strikes. 3. Disney will release earnings after markets close. Jim breaks down what the entertainment giant needs to do in order to fend off a boardroom battle with activist investor Nelson Peltz. First, take off ESPN’s newly announced sports streaming venture with Fox and Warner Bros. Discovery off the table for now. There’s too much ambiguity to know how it will impact shares in the long run. Jim said management also needs to share a “hard number plan” around cost cutting and how the business will actually improve. Vague qualitative comments aren’t enough to win over shareholders anymore. Jim said he would vote for the Peltz slate to join the board, barring great numbers from the quarter. (Jim Cramer’s Charitable Trust is long F, DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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