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Jobs, jobs, jobs: The July nonfarm payrolls report takes on added significance after Federal Reserve Chairman Jerome Powell highlighted the jobs situation. Some analysts think a significant jobs beat could lead to a market sell-off on concerns of a Federal Reserve rate hike. Bank of America forecasts nonfarm payrolls growth of 750K in July vs. 850K in June to take the unemployment to 5.7% from 5.9%. "We look for another solid month of wage growth with average hourly earnings growing by 0.4% mom (3.9% yoy) and expect average weekly hours to remain elevated 34.7 hours as demand continues to outpace supply. While our forecast signifies some moderation in the pace of job gains, it would still be another step towards substantial further progress that the Fed is looking for in its assessment of the labor market," notes the firm. Stocks sensitive to interest rates could be active if there is a surprise with the NFP report.
Projected dividend increases: Companies forecast to boost their dividend payouts next week include Bonanza Creek (NYSE:BCEI) to $0.40 (annual) from $0.35, ResMed (NYSE:RMD) to $0.43 from $0.39, Cable One (NYSE:CABO) to $2.75 from $2.50, Standard Motor Products (NYSE:SMP) to $0.27 from $0.25 and Illinois Tool Works (NYSE:ITW) to $1.23 from $1.14.
DraftKings earnings preview: DraftKings (NASDAQ:DKNG) reports earnings with forecasts on the total U.S. sports betting/iGaming market continuing to be pushed higher as more states report strong engagement. Morgan Stanley thinks sports betting/iGaming revenue could hit $7B in 2021. Look for an important update from DraftKings with its report on the transition of the tech stack to SBTech from Kambi, which Morgan Stanley sees as an important way for the company to grab more market share.
Coca-Cola NFT: Coca-Cola (NYSE:KO) is planning to release a collection of nonfungible tokens to raise money for Special Olympics International in an auction that runs through August 2. The company says the NFTs were created to celebrate elements that are core to the Coca-Cola brand, reinterpreted for a virtual world in new and exciting ways. Campbell Soup (NYSE:CPB) just finished a similar NFT fundraising initiative to promote the modern update to its iconic soup cans.
Corporate events: Gores Holdings (NASDAQ:GRSV) shareholders meet on August 3to vote on the SPAC deal with Ardagh Metal Packaging. The new company will be listed on the New York Stock Exchange with the AMBP symbol. ON Semiconductor (ON) conducts its Financial Analyst Day on August 4. The event will feature presentations on the company's strategy, technology, and financial outlook. Lockheed Martin (NYSE:LMT) webcasts a virtual investor event on August 5 to discuss growth drivers and Lockheed Martin's 21st Century Warfare strategic initiatives. Check out Seeking Alpha's Catalyst Watch for a detailed list of specific events to watch.
Notable annual meetings: Spectrum Brands (NYSE:SPB) on August 3 and Xilinx (NASDAQ:XLNX) on August 4.
Barron's mentions: GlaxoSmithKline (NYSE:GSK) is labeled an intriguing stock ahead of the spinoff of the consumer-healthcare joint venture it created with Pfizer (NYSE:PFE). The involvement of activist hedge fund Elliott Management is seen as a positive. Atlas Technical Consultants (NASDAQ:ATCX) is called a sleeper pick as an infrastructure winner. "More construction means more plans and designs for Atlas to review. These eventually become finished projects that need annual inspections, paying dividends for years," notes Barron's. Meanwhile, the cover story this week breaks down the labor shortage in the U.S. and why the issue may linger. Chinese stocks are seen as having elevated risk until more clarity on Beijing's regulatory push emerges. The issue is especially with US.-listed Chinese stocks as witnessed by the 44% drop in the Invesco Golden Dragon China Portfolio (NASDAQ:PGJ) ETF over the last three months. Many economists warn that the issue is much greater than a pandemic and stimulus short-term effect with birth rates in the U.S. in steady decline and retirees walking way from the workforce earlier. The issue is seen raising the risk of a misstep by the Federal Reserve in judging when the economy needs to be cooled off.
Sources: EDGAR, Bloomberg, CNBC, The Verge, Renaissance Capital
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