The last critical week of reporting season for the Dow Jones companies brings in one report after another. walmart (WMT), home depot (HD) and Cisco Systems (CSCO). This week is also an important week for Chinese names. JD.com (JD), tencent holdings (TCEHY) and NetEase (NTES) All listed on the calendar. Inflation and retail sales data on Tuesday and Wednesday could have some impact on the market. After a breakthrough driven by strong profits, transdigm (TDG) Defense and aerospace names will be in the spotlight on Thursday as potential orders pour in this week from the Dubai Airshow.
X
Stocks to watch: Still a market with plenty of targets
The market rally still looks healthy, so investors should keep a close eye on stocks being set up in various sectors. Nvidia (NVDA), urban outfitters (Urban), costco wholesale (Fee), general electric[ticker symb=GE] and data dog (DDOG) is noteworthy. Nvidia is a flagship stock and company in the AI-driven boom. Urban Outfitters is a strength among youth apparel retailers, and he is one of the few companies exploring the possibilities of handling. Costco Wholesale was a strong performer among discounters, hitting a new high on Friday. General Electric, a big winner in 2023, is just below multiple buy points. Datadog, whose profits soared last week, may also be working on its handle.
General Electric IBD Stock Enjoys a Beautiful Sunset Today
Economic Calendar: Ignore and Blow Inflation Data
Despite Fed Chair Jerome Powell’s mild protests on Thursday, the market remains confident the rate hike has taken place. Next week’s data on inflation and spending could challenge or reinforce that assumption. The October consumer price index, to be released at 8:30 a.m. ET on Tuesday, is expected to show a modest overall increase of 0.1%. However, core prices excluding food and energy are expected to remain stable, rising 0.3% month-on-month and 4.1% year-on-year.
The Producer Price Index, released at 8:30 a.m. Wednesday, will help provide a full picture of inflation. Components of the wholesale price report, such as airfares, portfolio management fees, and health care prices, are incorporated into the Fed’s main inflation report, the PCE Price Index.
October retail sales figures, also released Wednesday at 8:30 a.m., are expected to show that the recent surge in consumer spending is starting to wane. Economists expect overall sales to fall 0.1%, and excluding autos and gasoline to rise just 0.1%.
The company will also focus on housing construction and manufacturing. The NAHB Housing Market Index will be released at 10 a.m. Thursday, followed by housing starts and building permits for October at 8:30 a.m. Friday.
The results of the regional manufacturing industry survey for November will be released by the New York Fed on Wednesday at 8:30 a.m., and the Philadelphia Fed will release at 8:30 a.m. on Thursday.October’s industrial production data will be released at 9:15 a.m. on Thursday. Ru
Dow Jones earnings: Focus on Home Depot’s outlook
In the last important week of the Dow Jones Industrial Average earnings season, Home Depot joined Walmart and Cisco Systems in reporting results. Chart-wise, Home Depot is in the worst condition of the three, struggling to bounce back from its lows and facing resistance at both its 200-day and 50-day moving averages. . But the outlook will be key, as there are encouraging signs in mortgage rates and refinancing demand.
Dow Jones earnings: Cisco fights downturn
Cisco Systems announced its first quarter results after the market closed on Wednesday. Analysts expect EPS to increase 19% to $1.03 and revenue to increase 7% to $14.63 billion. “Cisco faces a seasonally weak quarter as its order backlog declines, resulting in another disappointing quarter with year-over-year order declines,” Raymond James’ report said. One question he has is whether Cisco will stick to his 2024 guidance, which currently calls for EPS of $4.01 to $4.08 and revenue growth of 0% to 2%. Cisco recently agreed to acquire a software company splunk (SPLK) With $28 billion in cash. Cisco management has stated that the Splunk acquisition will have no impact on returns to shareholders.
Dow Jones Profits: Walmart vs. Target
retail giant the goal (TGT) will report its third-quarter results early Wednesday, followed by Dow Jones giant Walmart on Thursday ahead of the holiday shopping season. Telsey Advisory on Friday lowered its price target on TGT stock to 145 from 162, lowering its third-quarter outlook given weak traffic through the quarter, slower consumer spending on discretionary items and better-than-expected promotional activity. has been revised downward. Analysts at FactSet expect earnings to decline 4% to $1.48 per share and revenue to decline 4.6% to $25.3 billion, the second straight quarter of decline. Walmart’s profit is expected to increase 1 cent to $1.51 per share, and sales are expected to rise 4.3% to $159.38 billion. WMT stock has been trading in a buy zone on a six-week cup basis.
Aerospace: Dubai Air Show scheduled to start
Dubai Airshow opens next week, with five days of the latest innovations and developments in the aerospace industry on display as companies compete for lucrative contracts from airlines, the military and governments. The biennial event runs Monday through Friday and features more than 1,400 exhibitors and more than 180 aircraft in flight and display. Industry giants such as Bombardier, L3 Harris (LHX), Emirates and other startups will also participate. archer aviation (ARCH), Bellwether Industries, and Saudi Arabian Public Investment Fund startup Riyadh Air. lockheed martin (LMT), RTX (RTX) and ge aerospace (GE) will also be among a host of defense contractors participating in the event, which takes on added significance as tensions rise in the Middle East following the October 7 attack on Israel. This year’s Dubai Air Show will include the addition of an Advanced Air Mobility (AAM) pavilion dedicated to drones and eVTOLs, and the likes of Archer Aviation will debut late-night electric air taxis. Investors will likely keep a close eye on the company’s deal-making ability. boeing (BA) and airbus (EADSY) comes after the aircraft maker was plagued by supplier issues throughout the year, causing concerns about delivery schedules.
S&P 500: High penalties for missed gains
Despite the market improvement, investors are exiting stocks of companies that are failing to meet their profit targets faster than in previous years. More than 80% of S&P 500 companies had completed their reporting by Tuesday. Of those, 82% beat analysts’ average earnings per share estimates, according to FactSet. This is higher than the average of 77% over the past five years. The average stock price increase after earnings announcements was 0.8%, slightly below average. However, companies with negative surprises experienced an average decline of 5.2% (from 2 days before to 2 days after earnings). This is more than double the five-year average error penalty of 2.3%. If this average holds, it would be the worst quarter of earnings shortfalls since the second quarter of 2011.
Monday
tyson foods (TSN) will report its fiscal fourth quarter earnings and earnings before the market opens on Monday. The report promises a look at inflation as meat processors close plants across the country in response to weak consumer demand and persistently high prices for livestock, feed and wages. Wall Street expects EPS to plummet more than 82% to 29 cents and revenue to decline by a fraction to $13.72 billion. Analysts expect full-year earnings to decline 86% to $1.22 per share and revenue to decline less than 1% to $53.26 billion. Tyson Foods shares have not been able to recover since falling more than 16% on May 8 after the company announced a surprise loss for its fiscal second quarter.
Tuesday
On hold (ONON) will report third-quarter results early Tuesday. Analysts expect the Swiss shoe maker’s profit to rise 143% to 17 cents a share, while sales growth will slow for the third consecutive quarter, rising 44% to $502 million. .
Wednesday
Chinese e-commerce giant JD.com announced its third-quarter results before the U.S. market opened on Wednesday. Analysts expect sales of $34 billion and earnings of 81 cents a share. This translates to an 8% year-over-year decline in profits and a less than 1% decline in sales. JD’s U.S.-listed shares have lost more than 50% of their value this year on concerns about Chinese consumer spending.
Chinese internet giant Tencent will report earnings before U.S. markets open on Wednesday. Analysts expect Tencent to post revenue of $21.2 billion and earnings of 57 cents per share. This translates into a 30% increase in revenue and a 7% increase in sales over the previous year. U.S.-listed Tencent shares have fallen 8% this year.
cyber security company palo alto networks (PANW) will report its first quarter results after market close on November 15th. Growth in its core network firewall products has slowed as it continues to make acquisitions to build a broader cloud security platform. Analysts expect Santa Clara, Calif.-based Palo Alto’s earnings per share to rise 40% from a year ago to $1.16. Analysts expected sales to rise 18% to $1.84 billion. PANW is trading near its 10-week line after a brief breakout from a 14-week consolidation. Shares soared in August after the company announced an 80% increase in quarterly profits. Sales growth exceeded 20% for six consecutive quarters.
TJX (TJX) will report third-quarter earnings and earnings early Wednesday morning. Analysts expect earnings to rise 15% to 99 cents a share and revenue to rise 7% to $13.05 billion. TJX has averaged 16% earnings growth over the past three quarters and is currently less than 3% from its buy point of 93.78.
advanced auto parts (AAP) reported early Wednesday morning. On Wall Street, even though revenue increased by 1%, EPS decreased by 22%. Since the third quarter of 2021, his revenue growth has not exceeded his low single digits. Earnings have declined in all but two quarters during this period.
Thursday
loss store (ROST) reported late Thursday. Analysts expect sales to increase 6% and EPS to increase 22%. That would be the third consecutive quarter of a return to growth in both sales and bottom line profits.
NetEase is scheduled to release its third quarter earnings report early Thursday. The China-based internet and online gaming company is expected to see revenue increase 9% to $3.75 billion and earnings per share of $1.49, down 6% from a year ago. NTES stock recently broke out of a flat base with a buy point of 110.82.
applied materials (AMAT) is scheduled to report fourth-quarter results later on Thursday. Analysts expect the semiconductor equipment maker’s sales to decline 3% to $6.52 billion and earnings to $1.99 per share, down 2% from a year ago. AMAT stock is at a double bottom with a buy point of 148.40.
gap (GPS) reported late Thursday. Analysts expect sales to decline 11% and EPS to decline 75%. This has resulted in sales declining for four consecutive quarters, with a slight return to growth in the current fourth quarter.
Arcos Dorados (ARCO), the world’s largest independent mcdonalds (MCD) franchisee releases third-quarter financial results early Thursday morning. Analysts expect sales to grow 18.8% to a record $1.1 billion and earnings to be flat at 22 cents per share. ARCO stock is rising to the right of his 15-week horizon.