| | Welcome to Wall Street Breakfast, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. Outlook  Another huge week of earnings is on tap with more than a quarter of S&P 500 companies due to report, including compelling reports from Alibaba (NYSE:BABA), General Motors (NYSE:GM) and Kraft Heinz (NASDAQ:KHC). Economic reports due out include updates on construction spending, factory orders and durable goods orders before the July employment report drops at the end of the week. The jobs report is seen as a potential market mover if there is a surprise to the upside or downside to reset the thinking on interest rates.
| | Earnings Earnings spotlight: Monday, August 2nd: On Semiconductor (NASDAQ:ON), NXP Semi (NASDAQ:NXPI), Arista Networks (NYSE:ANET), Take-Two Interactive (NASDAQ:TTWO) and Mosaic (NYSE:MOS).
Earnings spotlight: Tuesday, August 3rd: Alibaba (BABA), BP (NYSE:BP), Phillips 66 (NYSE:PSX), Eli Lilly (NYSE:LLY), Marriott International (NASDAQ:MAR), Prudential (NYSE:PRU), Nikola (NASDAQ:NKLA), Nio (NYSE:NIO), Amgen (NASDAQ:AMGN) and Caesars Entertainment (NASDAQ:CZR).
Earnings spotlight: Wednesday, August 4th: CVS Health (NYSE:CVS), General Motors (GM), Kraft Heinz (KHC), MetLife (NYSE:MET), Uber (NYSE:UBER), Fox Corporation (NASDAQ:FOX), Roku (NASDAQ:ROKU), Kraft Heinz (KHC), Booking Holdings (NASDAQ:BKNG) and Electronic Arts (NASDAQ:EA).
Earnings spotlight: Thursday, August 5th: CIGNA (NYSE:CI), Cardinal Health (NYSE:CAH), ViacomCBS (CBS), Duke Energy (NYSE:DUK), Moderna (NASDAQ:MRNA), Corteva (NYSE:CTVA), Square (NYSE:SQ), FireEye (NASDAQ:FEYE), Wayfair (NYSE:W), Shake Shack (NYSE:SHAK), Virgin Galactic (NYSE:SPCE), Dropbox (NASDAQ:DBX) and News Corp. (NASDAQ:NWSA).
Earnings spotlight: Friday, August 6th: Goodyear Tire & Rubber (NASDAQ:GT), Dominion Energy (NYSE:D), AMC Networks (NASDAQ:AMCX) and Magna International (NYSE:MGA).
| | Sponsored By Voyager  Traditional banks loan out your capital and make roughly 10% on your money, giving you back a fraction of that yield. On average banks pay out less than 1% on your savings account). It doesn't have to be this way. In the crypto world, Voyager offers interest yields up to 12%, because we cut out the middle-man and give back to our customers. This generates a stable source of passive income, adds additional exposure to your crypto of choice, and makes your returns work even harder for you. Sign up with Voyager and use code ALPHA to get $50 in BTC when you deposit at least $100 and make your first trade. Beat your bank—invest with Voyager. | | IPOs IPO watch: IPOs expected to price and start trading during the week include Better Being ( BBCO), European Wax Center ( EWCZ) Cadre ( CDRE), Weber ( WEBR) and WCG Clinical ( WCGC). Analyst quiet periods expire on Agriforce Growing Systems ( AGRI), Moving Image Technologies (NYSE: MITQ), TransCode Therapeutics (NASDAQ: RNAZ) and Sentage (NASDAQ: SNTG). The IPO share lockup period expires on Vor BioPharma (NASDAQ: VOR), Pharvaris (NASDAQ: PHVS), Lucira Health (NASDAQ: LHDX), Terns Pharmaceuticals (NASDAQ: TERN), Angion Biomedica (NASDAQ: ANGN), Valneva (NASDAQ: VALN), Evaxion Biotech (NASDAQ: EVAX) and CN Energy Group (NASDAQ: CNEY). | | M&A M&A tidbits: An imminent decision by the Surface Transportation Board on the Canadian National Railway (NYSE: CNI) and Kansas City Southern (NYSE: KSU) merger could roil the rails sector. Canadian Pacific Railway (NYSE: CP) is expected to re-engage with Kansas City Southern if the deal is blocked. The timing of a STB announcement is uncertain. | | Guidance 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.
| | Dividends 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.
| | Analysis 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.
| | Events 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. | | Stocks 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
| | | |
EmoticonEmoticon