Week Ahead: Apple Earnings, Jobs Report on the Docket in Busy Start to May

May kicks off with a busy first week filled with earnings, monetary policy and a snapshot of the health of the economy. 

Apple (AAPL) , the largest publicly traded company in the world, reports earnings on Tuesday afternoon in what has become a highlight of the reporting season. The company is seen as an industry bellwether and a measure of consumer sentiment, taking the pulse of how willing consumers are to spend on discretionary items. 

The iPhone maker is expected to post earnings of $2.02 a share in its fiscal second quarter, a 6.4% increase from the same quarter a year earlier. Sales are also expected to post growth, gaining 4.8% to $52.99 billion. First-quarter sales growth broke a worrisome losing streak after three quarters of revenue declines.

Of the 57% of S&P 500 companies that have reported so far, 77% have exceeded analysts' earnings estimates, above the 64% historical average, according to Thomson Reuters. Nearly 65% of companies have bested revenue estimates, edging past the historical average of 59%.

The trend of weaker revenue could continue in the coming week with a particular emphasis on multinationals in the consumer and tech space.

Consumer and media earnings include Archer Daniels (ADM) , Caesars Entertainment (CZR) , Coach (COH) , CVS Health (CVS) , Charter Communications (CHTR) , Denny's (DENN) , Etsy (ETSY) , Hanesbrands (HBI) , Match Group (MTCH) , Mondelez (MDLZ) , Potbelly (PBPB)  and Weight Watchers (WTW) on Tuesday; Cheesecake Factory (CAKE) , Clorox (CLX) , Estee Lauder (EL) , HSN (HSNI) , Kraft Heinz (KHC) , Reynolds American (RAI) , Tesla (TSLA) , Time Warner (TWX) , Yum! Brands (YUM)  and Energizer (ENR) on Wednesday; AMC Networks (AMCX) , CBS (CBS) , Dunkin Brands (DNKN) , El Pollo Loco (LOCO) , Hyatt (H) , Kellogg (K) , Shake Shack (SHAK) , Herbalife (HLF)  and Viacom (VIAB) on Thursday; and Revlon (REV) on Friday.

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In tech and telecom earnings, Advanced Micro Devices (AMD)  and Broadsoft (BSFT) will report on Monday; FireEye (FEYE) , HCP (HCP) , GoDaddy (GDDY) , WebMD (WBMD) and Frontier Communications (FTR) on Tuesday; Cirrus Logic (CRUS) , Facebook (FB) , Fitbit (FIT) , Garmin (GRMN) , IAC (IACI) , Sprint (S) , Groupon (GRPN) , Square (SQ) , Tableau Software (DATA)  and 3D Systems (DDD) on Wednesday; and Activision Blizzard (ATVI)  and Zynga (ZNGA) on Thursday.

In oil, materials and industrials earnings, Chemours (CC)  and Diamond Offshore (DO)  will report on Monday; BP (BP) , Arch Coal (ACI) , Anadarko Petroleum (APC) , ConocoPhillips (COP) , First Solar (FSLR)  and FMC Corp (FMC) on Tuesday; Murphy Oil (MUR) , Southern Co. (SO) , Transocean (RIG) , Williams Cos. (WMB)  and Yamana Gold (AUY) on Wednesday; and Alleghany (ATI) , Chesapeake Energy (CHK) , Marathon Oil (MRO)  and Statoil (STO) on Thursday.

Health and biotech earnings this week include Cardinal Health (CAH)  and Tenet Health (THC) on Monday; Aetna (AET) , Gilead Sciences (GILD) , Becton Dickinson (BDX) , Merck (MRK)  and Pfizer (PFE) on Tuesday; Humana (HUM) on Wednesday; and Cigna (CI) on Friday.

Finance earnings include Loews (L) on Monday; Genworth Financial (GNW) , MasterCard (MA) , Western Union (WU) and Allstate (ALL) on Tuesday; AIG (AIG) , Automatic Data Processing (ADP) , Metlife (MET)  and Western Union (WU) on Wednesday; and HSBC (HSBC) on Thursday.

The U.S. jobs report for April, to be released Friday, dominates the economic calendar in the coming week. Analysts anticipate 193,000 jobs to have been added to the U.S. economy in April and for the unemployment rate to hold at 4.6%. Average hourly earnings are expected to grow 0.3%. The U.S. added 235,000 and 98,000 jobs over February and March, respectively, the first full two months under Donald Trump's economy. 

Also on the economic calendar in the coming week: personal income and outlays for March, the PMI manufacturing index and the ISM Manufacturing Index for April and construction spending for March will be released on Monday; the ADP employment report for April and the ISM non-manufacturing index for April on Wednesday; international trade for March, productivity and costs for the first quarter and factory orders for March on Thursday. 

The Federal Reserve will convene for its semi-monthly meeting on Tuesday with an announcement set for Wednesday afternoon. Members of the Federal Open Market Committee will assess recent mixed data and make a decision on interest rates. The majority of analysts do not expect a change in interest rates. 

The first week of the new month could test the market wisdom of "sell in May and go away." The saying refers to a general downward trend each May, though that hasn't held true in seven of the past 10 years. 

"The causa proxima for the demise of that axiom will likely be earnings as the secular bull market has transitioned from an interest rate, to an earnings-driven, secular bull market; and this quarter's earnings are no exception," said Raymond James' Jeffrey D. Saut. 

By Keris Alison Lahiff

Source: https://goo.gl/wyEbNa

Why Five Below, Inc. Stock Popped Today

The discount retailer surged on another strong earnings report and expectations for 2017.

What happened

Shares of Five Below, Inc. (NASDAQ:FIVE) were surging higher today after the discount retailer beat expectations in its fourth-quarter earnings report. As of 11:04 a.m. EDT, the stock was up 11.6%.

So what

The retailer, which sells everything for $5 or less, said revenue increased 18.9% to $388.1 million, ahead of estimates at $387 million, as comparable sales increased 1%. Earnings per share, meanwhile, also bumped up 17% to $0.90, topping the consensus by $0.01

IMAGE SOURCE: THE MOTLEY FOOL.

CEO Joel Anderson commented, "Our performance in 2016 once again illustrates the strength, consistency and broad appeal of the Five Below model with a compelling merchandise assortment designed to 'wow' our customers at incredible values." He also noted the company completed its 11th consecutive year of comparable-sales growth.

Now what 

Investors were also impressed with Five Below's guidance for 2017, as the company expects to open another 100 stores in the current year, increasing its base by 19%. Management also projected revenue of $1.21 billion to $1.23 billion, which includes an extra week in the year, representing an increase of 21% to 23% over the $1 billion in 2016. On the bottom line, the company expects earnings per share to improve from $1.30 to $1.55-$1.61. Both projections were in line with analyst estimates. Management also called for a low-single-digit increase in comparable sales this year.

In a challenging retail climate, Five Below's ability to aggressively open new stores and grow comparable sales is impressive, and the company's mixture of cheap, fun products appears to be protected from e-commerce threats. Considering that, I'd expect profits to continue marching higher.

By Jeremy Bowman

Source:https://www.fool.com/investing/2017/03/23/why-five-below-inc-stock-popped-today.aspx

What to Watch Wednesday: PVH Reports Earnings

On Wednesday, March 22, investors await quarterly earnings from clothing maker PVH Corp.

On Wednesday, March 22, investors await quarterly earnings from clothing maker PVH Corp. (PVH) . The owner of Calvin Klein, Tommy Hilfiger and Speedo brands is expected to report earnings of $1.19 a share on sales of $2.09 billion. During the same quarter a year ago, the company posted earnings of $1.52 a share on sales of $2.11 billion. As for economic data, existing home sales are released at 10 a.m. EST while the EIA Petroleum Status Report is out at 10:30 a.m. Scott Gamm reports from Wall Street.

Source:https://www.thestreet.com/video/14054136/what-to-watch-wednesday-pvh-reports-earnings.html

Week Ahead: Wall Street Waits to Exhale

Investors anxiously await action on Obamacare repeal, tax reform and interest rates. Here's what to look for in coming days.

The bull market turned eight last Thursday, but the birthday celebration was muted. As the stock market bubble continues to inflate and political tensions rise, investors are holding their collective breath.

Will the long-awaited correction come this year or can the market dodge the inevitable until 2018 or even 2019? Another concern is whether the Trump presidency will fulfill its business-oriented promises or end in disaster.

As you navigate this tumultuous investment climate, your watchwords should be prudence and caution. Capital appreciation is only part of the goal; capital preservation is important, too. Here's your guide for the week ahead.

The stock market last week posted its third weekly decline of the year, falling 0.4% to narrow its first-quarter gain to 6%. In the spotlight was crude oil, which fell more than 5% to hit a new 2017 low. The U.S. benchmark dropped below the psychologically significant threshold of $50 per barrel to close on Friday at $48.49. The culprit for crude's drop was a bearish short-term inventory report to which investors probably overreacted. Other data indicate that global demand for oil will outstrip supply after 2020.

However, investors were encouraged by the latest U.S. jobs report released Friday, which showed that the U.S. economy added 235,000 jobs in February while the unemployment rate dipped to 4.7%. The Bureau of Labor Statistics (BLS) report also showed average hourly earnings rose by 6 cents in February, accelerating the rate of wage growth from last month. Earnings are now up 2.8% over the year.

Not surprisingly, the new Trump administration was quick to take credit for the data, even though the positive momentum on jobs was inherited from Barack Obama. It should also be noted that during the presidential campaign that Donald Trump had derided BLS reports as "fake" and unreliable.

But Wall Street cares less about political consistency and more about results. The new employment data was unexpectedly robust and dampened fears that the economy is heading for a recession. Investors now eagerly await corporate and personal tax reform. However, if promised tax cuts don't come this year, it could be the pin that busts the overvalued market's balloon.

Another potential correction catalyst is the maladroit effort in Congress to repeal and replace Obamacare. House Republicans put forth a plan last week that's hated by everyone on the political spectrum. Indeed, most political observers deem the plan Dead on Arrival. If that's the case, protracted wrangling over health care could impede tax reform and other market-friendly promises made by Trump, such as massive infrastructure repair.

Also commanding attention in the week ahead will be the Federal Reserve. In the wake of last Friday's positive jobs data, the central bank is expected to announce another interest rate hike on March 15.

Noteworthy earnings reports in coming days include those from Guess (GES) and Oracle (ORCL) (Wednesday); Dollar General (DG) (Thursday); and Tiffany & Co. (TIF) (Friday).

Oracle's third-quarter scorecard for fiscal 2017 will especially garner attention, as traders seek clues for the health of the overall technology sector. The average analyst expectation is that the tech giant's earnings per share will come in at 62 cents, compared to 64 cents in the same year-ago quarter.

Oracle's fast-growing cloud services combined with a robust balance sheet and improving margins bode well for the stock. Investors will scrutinize operating results to see whether the company's cloud growth is sustainable.

Scheduled on the economic calendar: FOMC Meeting Begins (Tuesday); Consumer Price Index, Retail Sales, and Housing Market Index (Wednesday); Housing Starts and Jobless Claims (Thursday): Consumer Sentiment, Leading Indicators, and Baker Hughes (BHI) Rig Count (Friday).

By John Persinos

Source:https://www.thestreet.com/story/14038016/1/the-week-ahead-wall-street-waits-to-exhale.html

What to Watch This Week: Trump Addresses Congress, Costco Reports Earnings

For the week of February 27, investors await President Donald Trump's congressional address, which takes place on Tuesday evening -- along with a host of major earnings reports. On Monday, EOG Resources (EOG) and Hertz (HTZ) release earnings. On Tuesday, Ambarella (AMBA) , Domino's Pizza (DPZ) and Etsy (ETSY) report quarterly results. Best Buy (BBY) , American Eagle Outfitters (AEO) and Lowe's Companies (LOW) unveil earnings Wednesday.




On Thursday, the markets await quarterly results from Abercrombie & Fitch (ANF) , Kroger (KR) and Costco (COST) . As for economic data, on Tuesday, an estimate for fourth quarter gross domestic product is released. On Wednesday, the Federal Reserve's favorite inflation gauge, the personal consumption expenditure price index is released for January. On Thursday, the markets await weekly jobless claims. On Friday, Federal Reserve Vice Chair Stanley Fischer is speaking, as is Chair Janet Yellen. 

By Scott Gamm

Source: https://www.thestreet.com/video/14015870/what-to-watch-this-week-trump-addresses-congress-costco-reports-earnings.htm

What to Watch Thursday: Disney, Macy's and Nordstrom Report Earnings

On Thursday, November 10, investors await a slew of corporate earnings reports.

On Thursday, November 10, investors await a slew of corporate earnings reports. Walt Disney  (DIS) releases earnings on Thursday. Analysts expect Disney to report earnings of $1.16 a share on sales of $13.5 billion and will be keeping a close eye on ESPN subscribers, which have been declining amid the popularity of cord cutting. Thursday is an important day for the retail sector with Macy's (M) , Nordstrom (JWN) and Ralph Lauren (RL) unveiling quarterly financial results. It's a light day on the economic calendar with weekly jobless claims out at 8:30 a.m. and St. Louis Federal Reserve Bank President James Bullard delivering remarks in St. Louis.

Source: https://www.thestreet.com/video/13887015/what-to-watch-thursday-disney-macy-s-and-nordstrom-report-earnings.html

Amazon due for another record quarter: what to expect

Amazon’s AWS and e-commerce businesses both on track for double-digit growth

Amazon.com Inc. is expected to report another solid financial period when it reports third-quarter earnings after the market closes Thursday, fueled by stronger e-commerce sales and increased appetite for its cloud-computing service, Amazon Web Services.

Total Amazon AMZN, -0.26%  revenue is expected to rise by 29% year-over-year, with U.S. e-commerce sales increasing by 16% and AWS revenues rising by 52%, according to Cantor Fitzgerald, which recently raised its price target on Amazon shares to $1,000.

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“Our checks show healthy double-digit pace of growth in e-commerce and we view Amazon as one of the prime beneficiaries of such a trend,” Cantor Fitzgerald analyst Youssef Squali said in a note to clients Monday.

Here’s what to expect:

Earnings: Sell-side analysts surveyed by FactSet expect Amazon to report a profit of 78 cents a share, compared with 17 cents in the year-earlier period. Contributors to Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages and buy-side analysts to predict earnings, expect Amazon to report a dollar a share. The company topped both consensus estimates by a wide margin in the first two quarters of this fiscal year after missing Wall Street’s guidance by roughly 46% in the final quarter of fiscal 2015.

“After years of uneven profits, Amazon has begun to deliver substantial earnings,” said Wedbush analyst Michael Pachter, who has an outperform rating and $900 price target on the stock.

Revenue: The company is expected to report revenue of $32.689 billion, compared with $23.2 billion in the year-earlier period, according to the FactSet consensus estimate. Estimize has Amazon’s revenue coming in slightly lower, around $32.250 billion. Amazon beat both guidance ranges in its past two fiscal quarters.

See also: Louis Vuitton’s luxury goods are not available on Amazon – and that’s smart

Stock reaction: Shares of Amazon have outperformed the S&P 500 both in the past three months and the past year. The stock has risen nearly 12% in the three months since its last earnings report, compared with a decline of 1.1% for the index. They’re up 39% from a year ago, compared with a 3.6% increase for the S&P 500. On Monday, the stock traded 1.7% higher to $833.27. The average rating on the stock is the equivalent to buy, while the average price target on shares is $881.13.

What to watch for: Coupled together, Amazon’s ballooning e-commerce sales and cloud services have positioned the company for sustained and substantial earnings growth, said Pachter.

The company’s North American e-commerce same-store sales have started to turn around after several months of declines, rising 10.4% in August and 11.8% in September, compared with growth of just 6.4% in July, according to Nomura analyst Anthony DiClemente, citing ChannelAdvisor data.

“While below Amazon’s historical average, we believe the slower growth is substantially offset by ramping growth in total third-party sellers due to ongoing success of the Fulfillment by Amazon program,” said DiClemente, who rates Amazon shares a buy with a $950 price
target.