What to Expect in the Week Ahead (DIS, BABA, LLY and UBER Earnings; PMI Data and Fed Speakers)

Walt Disney Co. reports after the market closes on Wednesday, February 7th. Street estimates stand at $1.04 for EPS and $23.8B for revenues in the December quarter, however, Wall Street expects ad revenue to drop 63% and revenue from linear networks to fall by 59%.

Uber Inc. delivers results before the opening bell on Wednesday, February 7th. Bloomberg data suggests analysts expect EPS to fall 42% from a year earlier to $0.17 per share.

The market remains upbeat on the outlook for Uber, with the company maintaining its market dominance and benefitting from continued growth in customer mobility, especially amidst strong services activity in the United States. Solid uptake in delivery services may continue as consumers trade down from dining out to dining in.

Alibaba will report fiscal third-quarter results on Wednesday, February 7th, before the opening bell. Analysts expect EPS of $2.65 on $36.44 billion in revenue.

The new CEO, Eddie Wu, is expected to revive profits and reenergize growth drivers from Alibaba Cloud and Taobao & Tmall Group. However, restarting its Taobao and Tmall platforms comes with upfront costs because of increased incentives. Still, investors are excited to see what Mr. Wu can deliver.

On the U.S. economic front, ISM non-manufacturing PMI is likely to show a reading of 52.0 in January after a print of 50.6 in December.

On the U.S. economic calendar, the Labor Department's jobless claims data is coming out on Thursday. Initial claims for state unemployment benefits probably dropped 4,000 to a seasonally adjusted 220,000 for the week ending Feb. 3.

On Wednesday, the Commerce Department is scheduled to report that international trade likely contracted to a deficit of $62.2 billion in December from a deficit of $63.2 billion in November. Separately, the Commerce Department will likely report the wholesale inventories data for December on Thursday.