Here’s a look at some of the stocks the Yahoo Finance team will be tracking for you today.
IBM (IBM) is giving a boost to the Dow Jones Industrial Average. Big Blue shares soared Wednesday morning after reporting better than expected profits and revenue for last quarter. However, sales declined for the 22nd consecutive quarter year-over-year. IBM says it will continue growing its cloud, mobile, and security branches to offset declines in its legacy businesses.
MGM Resorts (MGM) shares fell in early trading. Stifel Nicolaus downgraded the stock to Hold from Buy and removed it from the “Stifel Select List.” The firm says it’s not expecting any major growth at MGM Resorts in the coming year to justify a Buy rating. Shares of the casino operator have fallen about 4.5% since the mass shooting incident at MGM’s Mandalay Bay Resort on the Las Vegas Strip.
Movie theater stocks are in the spotlight this morning. B. Riley is lowering third quarter earnings estimates for AMC Entertainment Holdings (AMC), Regal Entertainment Group (RGC), Cinemark Holdings (CNK), and The Marcus Corporation (MCS) An analyst cites lower box office revenues, digital concerns, and Hollywood potentially looking to shorten the amount of time movies are in theaters for the outlook. The analyst does, however, expect earnings in Q4 and beyond to pick up and to increase by double digits.
Moving to the small screen, investors are also watching Amazon (AMZN). The e-commerce giant has accepted the resignation of Roy Price, head of its Amazon Studios. Price is stepping down after a producer accused him of sexual harassment. Accusations against Price followed the sex scandal around Hollywood producer Harvey Weinstein. Price was the head of Amazon Studios since September 2014.
Authorities are digging into mining giant Rio Tinto (RIO). U.S. regulators are charging the British-Australian company with fraud. The SEC alleges Rio Tinto overvalued mining assets in Mozambique at more than $3 billion despite an internal valuation worth “negative” $680 million. The lawsuit also claims the company’s former CEO and CIO knew of the problems and didn’t tell investors. Rio Tinto says the claims are quote “unwarranted” and will be proven wrong in court.