The Rundown - Disney's 'Moana 2' Hits Theaters, Dell Slips on Weak PC Sales

Episode Date: November 27, 2024

Stock market update for November 27, 2024.

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadadmani, and today is Wednesday, November 27th. In today's episode, we tell you why Hollywood is prepping for a big week at the box office. We also tell you about Taylor Swift's exclusive deal with Target that might help the retailer bounce back. Then we recap earnings from Dell and Crowdstrike and tell you how many people are expected to travel for Thanksgiving this year. It's a lot. All right.

Let's go. Markets kept the good vibes going this week. Both the S&P and NASDAG added 0.6% on Tuesday with the S&P closing at record highs. Dow also closed at record highs again, but we're going to move on from that. It's just so crazy how the markets are just shrugging off any sort of negative headline that we encounter. Whether it's geopolitical tensions or this latest one with potential tariffs with Canada and Mexico and China, the stock market just seems to shrug that off. Keep pushing higher.

The S&P 500 is up nearly 27% for the year, and the NASDAQ is up nearly 30% this year. Now, remember, the stock market is closed tomorrow for Thanksgiving, and I got to say, investors have a lot to be thankful for this year. Let's run through some headlines. The most anticipated event in my house over the past couple weeks hasn't been any sort of earnings or the upcoming Fed meeting. No, it's been the release of Disney's Moana 2,

which hits theaters today, and as someone that has a six-year-old daughter, this is her Super Bowl. This sequel is expected to be a big hit. Right now, the estimates have it making between $120 and $150 million throughout the holiday weekend. I'm taking my daughter on Friday to go see the movie,

and I bought the tickets like over a week ago, and there were still limited seats available when I bought the tickets. And what's interesting about Moana is that the original movie came out eight years ago, back in 2016, and it made around $680 million at the box office, which at the time wasn't, considered a big hit. But since then, this movie has been a monster on streaming. According to

Nielsen, this movie has been streamed over a billion hours. And it's been the most watched movie on streaming every single year this decade. 2020, 2020, 2021, 2022, and 23. Number one, every year. That is very impressive for a movie that came out back in 2016. And for those of you guys, I don't have kids, let me explain to you why this makes a lot of sense. Kids like to watch stuff nonstop on repeat. Like, my daughter would watch Moana every single day on Disney Plus, sometimes multiple times a day.

She loved it. It's just how kids are. And the movie's pretty good. The songs are catchy. So I get it. So yeah, I expect Moana, too, to be a huge hit in theaters this week. And if the music in the second movie is as good as the first one,

I'm going to have to try hard not to be the guys singing in the theaters. And I mentioned this earlier in the week, but like movie theaters are having a moment right now. Wicked has been a huge hit at the box office. Gladiator 2 has been a pretty decent hit. And if you add Moana into the mix, theaters are now expected to pull in around $200 million over the Thanksgiving holiday.

That would be huge for Hollywood because they haven't made $200 million over Thanksgiving since 2019. So I'm glad to see movie theaters making a little mini comeback. Now, speaking of the entertainment industry, the most popular entertainer on the planet, Taylor Swift is about to end her iconic Eros tour. Taylor Swift's final three shows are going to be in Vancouver, Canada, between December 6th and December 8th. And these tickets are being sold for around $2,000. So if you haven't been to the Ares Tour yet, which I feel like has been ongoing for like two years now,

Vancouver might be your last chance. Taylor Swift is also planning to release a book that recaps the tour in partnership with Target. Like Target will be the only place you can buy this book. The book will sell for around 40 bucks and you can buy it at Target starting on Friday. And I'm sure this book will do major numbies. And Target sure could use the help. Because if you remember from last week, we talked about Target's earnings where they reported a slowdown in their sales. They're getting crushed by their competition like Walmart and Amazon.

Their stock actually tanked more than 20% last week as a result. So I'm sure being the only retailer for Taylor Swift's book is probably going to help bring customers to the door in the most busiest shopping period of the year. Pretty smart move by Target. Let's talk about some stocks making moves today. Shares of the clothing retailer urban outfitters are up this morning after the company reported a 6.3% increase in sales for Q3, beating Wall Street estimates.

Their sales actually hit a record high of $1.36 billion. So they're doing better than ever, and they're also optimistic about the holiday demand. Shares are up 13% in pre-market trading in reaction to these earnings. I'm not going to lie to you guys. I don't think I've ever stepped into an urban outfitters before, even when I was a teenager, and I'm definitely not cool enough to do it now. Now, on the flip side, Dell not doing so hot this morning after the company reported disappointing Q3 earnings and fourth quarter guidance.

The company's sales are being weighed down by weak enterprises. demand in their PC segment. Companies just aren't buying as many computers due to macro uncertainty and a slowdown in consumer spending. This is according to Dell. And that's not just a Dell problem. Their rival HP also said the same thing when they reported earnings last night. Now, thankfully for Dell, they're more than just a company that makes computers and monitors.

They also make AI servers, and the demand for that has been very strong. The company's infrastructure solutions unit, which includes their AI business, grew by 34% beating analyst estimates. And the company expects strong demand for their AI servers moving forward. So AI has saved Dell this year, along with a lot of other tech companies, and it's been the main reason their stock has been up 85% year to date. But unfortunately, that wasn't enough to save the stock today, and shares are down around 10% in pre-market trading in reaction to these earnings. Another stock having a tough morning, crowd strike. The company's shares are falling after they reported lackluster earnings. Actually, their earnings report wasn't that bad. The

third quarter revenues and profit numbers beat estimates, but they're weaker than expected profit forecast is what's fueling the negative sentiment. Crowdstrike stock is down around 3% in pre-market trading. Now, this is CrowdStrike's second earnings report since their major outage in July that crashed millions of devices and caused chaos at airports and train station and banks. I think it derailed Delta airline for days. So I think the reputation is still recovering from that debacle. Like way too many non-tech people know the name CrowdStrike, and I don't think they get good feelings when they hear that name. Let's wrap the show with a fun fact. Nearly 80 million people are expected to travel for Thanksgiving this year. This is according to estimates from

AAA. You know, Thanksgiving is the busiest holiday for travel, and most of that travel is done on the roads. 90% of people are going to be driving to their destination. 7% of travel is going to be through air, and the remaining 3% is others, so probably rail or maybe boat or maybe some people are going to be traveling by horse. But yeah, man, it just always blows my mind that nearly 25% of the country travels during the Thanksgiving holiday. And things can get pretty hectic on the roads and at the airports during Thanksgiving. Like, I remember living in Austin a while back, and I would drive to Houston to spend Thanksgiving with my family. And that drive, which is normally like two and a half hours, would end up taking five plus hours sometimes because there were so much

traffic. So if you are someone that has to travel during Thanksgiving, I'm wishing you a safe and smooth travels. And hopefully we're not reporting about any chaos at airports on Monday or any sort of tech outages. Let's hope CrowdStrike is on their A game this week. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. Remember, the stock market is closed tomorrow for Thanksgiving, so no show for us. But we will be back on Friday for a quick recap.

So if you need someone to listen to as you recover from a food coma or if you need someone to hype you up as you start diving into these Black Friday deals, then tune in on Friday morning. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. Happy Thanksgiving, everybody, and we'll see you guys back here on Friday. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests.

You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Run-down guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respected professionals. Learn more at public.com disclosures. In partnership with Iided money, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.