Summary: Disney reports earnings; Twenty First Century Fox withdraws Time Warner bid; Stocks extend losses; Target falls on forecast cut; Family Dollar could get bid from Dollar General; Coach beats forecasts; Gannett spinning off print business.
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Disney reporting record earnings after the bell- beating forecasts- helped by strong results from its movie studio and consumer products division.
And shares of Rupert Murdoch's 21st Century Fox jumping in after hours- after it withdrew its offer to buy Time Warner and announced a $6 billion share buyback. Shares of Time Warner fell in after-hours trading.
Tuesday's trading session - not good, largely on concerns that Russia could be poised to invade Ukraine. Add to that, weakness in energy shares pushing the markets down sharply. The Dow and S&P 500 down to their lowest levels since May. Crude oil falling to six-month lows. Stocks also weighed down by less than stellar corporate news.
One of the biggest losers- online coupon company RetailMeNot- shedding more than a quarter of its value on a big revenue warning. Visits to its websites plunged after Google changed its way it ranks in web searches. Also a loser- Target. The third-largest U.S. retailer cut its second quarter earnings estimate blaming the big data breach- and the discounts it had to offer customers to bring them back to their stores.
The rocky market- presents opportunity says Steve Raineri, manager of the Franklin Small Cap Value fund.
SOUNDBITE: STEVE RAINERI, MANAGER, FRANKLIN SMALL CAP VALUE FUND (ENGLISH) SAYING:
"We'll look to use volatility as an opportunity to pick up bargains. And like I said because of the multi-year holding period we are able to take a very long term view and if a company has good long-term fundamentals we are more than happy to scoop it up when it declines."
Dollar General may try to challenge Dollar Tree's $8.5 billion bid for Family Dollar, according to Bloomberg. Carl Icahn- who had been Family Dollar's biggest shareholder when Dollar Tree offered to buy it- had pushed for the sale to Dollar General. He has since cut his stake in about half. Separately, Icahn Enterprises reported revenues of $6.4 billion in the second quarter.
The bar was low, but Coach still had a good earnings day- beating forecasts on both revenues and profits thanks to international sales.
Gannett will spin off its publishing assets- which include USA today. It's an on-trend move- Time Warner and Tribune have also chopped off their struggling print businesses. Gannett also said it's also buying the 73 percent it doesn't already own in Classified ventures- which owns Cars.com.
More economic data pointing to solid growth. The U.S. service sector grew at its fastest pace in 8-1/2 years, that according to the Institute for Supply Management. And new orders for U.S. factory goods came in stronger than expected in June.
European shares gained ground - thanks to some strong earnings reports- though weakness continued in Spanish and Italian stocks.
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