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3 Stocks to Watch on Wednesday: Walt Disney Co (DIS), Fossil Group Inc (FOSL) and Priceline Group Inc (PCLN)

DIS reports a weak Q3 and announces it will pull away from Netflix, while FOSL and PCLN plunge on earnings.

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U.S. stocks pulled off an incredible but discouraging reversal on Tuesday, with an early start transforming into what looked to be another run to all-time highs for the indices … only to dip even lower as fears about North Korea’s nuclear program accelerated into the close. The Dow Jones Industrial Average, the S&P 500 Index and the Nasdaq Composite each fell 0.2% as a result.

3 Stocks to Watch on Wednesday: Walt Disney Co (DIS), Fossil Group Inc (FOSL) and Priceline Group Inc (PCLN)As we head into Wednesday’s trade, the earnings calendar is proving unkind to a trio of stocks: Walt Disney Co (NYSE:DIS), Fossil Group Inc (NASDAQ:FOSL) and Priceline Group Inc (NASDAQ:PCLN), who are all solidly down in premarket action.

Here’s what you need to know.

Walt Disney Co (DIS)

DIS stock is dipping this morning thanks to a big splash during its third-quarter earnings report, but the hubbub had little to do with Disney’s actual numbers.

For the record, Disney suffered an operating profit decline of 23% year-over-year, though adjusted EPS of $1.58 per share came in 3 cents ahead of Wall Street’s expectations. Revenues only declined by a hair to $14.24 billion, but missed estimates of $14.42 billion.

To no surprise, ESPN was at the top of Disney’s troubles, acting as an anchor on Media and Networks revenues, which came in at $1.84 billion against expectations of $1.99 billion.

To more of a surprise, Disney announced that its longtime agreement with Netflix, Inc. (NASDAQ:NFLX) was going the way of the dodo.

Disney plans to launch an ESPN streaming service early next year that will include content from MLB and NHL, and will follow that up with a Disney-branded direct-to-consumer streaming product in 2019. Disney is purchasing a majority stake in BAMTech — which powers streaming services for MLB and the NHL, among other offerings — to handle its own technological needs.

This new strategy will come at a cost to Netflix, as Disney plans to pull its movies from the streaming platform at the start of 2019 (though Netflix’s shows under the Marvel label, if they’re still in production, can stick around).

DIS stock is off 4% as a result, which would send shares into the red for 2017 if those losses stick into Wednesday’s open. NFLX is off similarly.

Priceline Group Inc (PCLN)

PCLN stock reversed hard from all-time highs on Tuesday following its evening quarterly earnings results last night.

The online travel company posted second-quarter revenues of $3 billion per share, up 21% year-over-year and in line with analyst estimates. Net income spiked 24% year-over-year to $270 million. On an adjusted basis, earnings of $15.14 per share topped analysts’ projections of $14.20 per share.

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