3 Things to Watch in the Stock Market This Week

Stocks didn’t move much last week. Generally strong earnings and economic reports faced off against worries of rising trade tensions to keep both the S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) stuck in a narrow range. So far this year, the two indexes are up, but the S&P is outpacing its narrower peer.

Hundreds of companies are set to post second-quarter earnings reports over the next few trading days. Below, we’ll take a closer look at the announcements that could send shares of Weight Watchers (NYSE: WTW), Disney (NYSE: DIS), and Arcos Dorados (NYSE: ARCO) moving this week.

Weight Watchers’ subscriber numbers

Investors could hardly be more optimistic heading into Monday’s earnings report by Weight Watchers. Shares doubled over the first half of 2018 on news of significant improvements in the company’s operating trends. Weight Watchers managed a 29% year-over-year spike in paid subscribers last quarter, for example, to 4.6 million users. And these customers are sticking around longer, with retention climbing past nine months on average. These engagement gains translated into a doubling of operating income to $63 million in the fiscal first quarter.

CEO Mindy Grossman and her executive team hiked their earnings guidance in early May, and the company now sees profits rising to between $3.00 and $3.20 per share, up from the prior target range of $2.40 to $2.70. That aggressive forecast assumes strong uptake of the company’s “freestyle” program and continued close cooperation with Oprah Winfrey, who has lent her powerful brand to Weight Watchers’ increasingly effective marketing campaigns.

Disney’s streaming update 

Media giant Disney will announce its fiscal third-quarter 2018 results before the market opens on Tuesday. The organization’s last quarterly outing included some head-turning results out of its studio and parks and resorts segments that together offset weak growth in the core television broadcasting unit. Disney’s sales ended up higher by 9% last quarter as theatrical hits like Black Panther dominated the box office.