Walt Disney shares (DIS) bucked a negative market trend Wednesday and rose to a record high after the company announced a sequel to its hugely successful superhero flick, "The Avengers," and posted a rise in quarterly profit.
The profit increase was driven by strong attendance at its theme parks and higher advertising revenue at its cable networks, including ESPN and came despite the megaflop of its science fiction film "John Carter."
Shares of the company touched a record high $45.80 before retreating a bit to $45.39,up 2.5 percent from the previous close.
Macquarie Equities Research analyst Tim Nollen said the success of "The Avengers," which has already generated $700 million in global box office sales, more than makes up for "John Carter," one of the biggest flops in Hollywood history, for which the company took a $200 million charge against earnings.
Disney's movie studio Chairman Rich Ross resigned under pressure in April after less than three years in the post.
Despite Disney's strong performance the Dow Jones industrial average was down for what would be a sixth straight session, largely on uncertainty over European economic problems. The Dow as off about 61 points or 0.48 percent at midday.
Among other hot stocks:
- Chiquita Brands shares (CQB) slipped 29 percent at $5.69 after the cmopany's earnings missed expectations due to higher fuel prices and lower banana prices.
- SodaStream International shares (SODA) bubbled up 22 percent on strong earnings as the company enjoyed strong demand for its in-home drink carbonation systems. The comnpany announced that Wal-Mart will begin carrying its products this month.
- Cost Plus (CPWM) was up 22 percent on news that Bed Bath and Beyond (BBBY) will buy the rival retailer for $495 million or $22 a share. Bed Bath & Beyond shares were up 1 percent.
- Dynavax Technologies (DVAX), which is working on a drug for hepatitis B, fell 22 percent after the company priced a new public offering of stock at a steep discount to Tuesday's closing price. The company also said Chief Executive Dino Dina is stepping down.
