By Geoffrey Smith
Investing.com -- Stocks in focus in premarket trading on Wednesday, May 6th. Please refresh for updates.
Walt Disney (NYSE:DIS) stock fell 0.8% after reporting late on Tuesday that its profit almost entirely evaporated in its fiscal second quarter due to the closure of theme parks and movie theaters, along with reduced advertising at its TV channels. The company also suspended its dividend and its full-year guidance. More positively, it reported that Disney+ now has 54.5 million subscribers. Wendy’s (NASDAQ:WEN) stock rose 6.5% after the company indicated a strong rebound in sales amid the easing of lockdown restrictions. Same-store sales in the U.S. fell only 2.1% in the week through May 3, despite operating largely on a drive-thru and delivery basis only. They had been down as much as 25% on the year in April. General Motors (NYSE:GM) stock rose 6.7% after the company’s first-quarter earnings showed it burning through cash at a much slower rate than expected. Cash flow was a negative $903 million in the first quarter, while the company scraped a net profit of $294 million. It said it expected the current quarter to be the low point of the recession, but gave no concrete guidance. Bunge (NYSE:BG) stock was down 6.6% after some $285 million in mark-to-market losses on forward hedges swung it to a loss in the first quarter. The company said it expects the majority of those losses to reverse in the course of the year. The agricultural trader's results were also hit by the depreciation of the Brazilian real and the collapse of local ethanol prices, which hurt its biofuel division. Bunge gave no outlook for the full year but said forward curves for its main products suggest it will have to revise down its earnings expectations. Norwegian Cruise Line (NYSE:NCLH) stock recovered 3.1% after the company completed a $2.2 billion recapitalization that saw it attract $800 million in new equity (half of it sold to buyout fund L Catterton) and $1.4 million in fresh debt, much of it convertible. CVS Health (NYSE:CVS) stock was up 3.1% after the company's first-quarter earnings and revenue outstripped expectations. Sales at its retail unit rose 77% on the year due to Covid-19-related stockpiling. The company still didn't raise its outlook fhe year, mindful that the stockpiling effect may simply have temporally dislocated purchases, rather than added much to them.