Sunday, September 8, 2024

Market Heads For Midyear With Nike, FedEx And Micron Technology On Tap

Must read

The stock market chalked up a few firsts in the past week, with the end of the second quarter rapidly approaching.  Nvidia (NVDA) on Tuesday overtook Microsoft (MSFT) to become, by market capitalization, the world’s largest public company. Microsoft quickly regained its lead, but the battle is likely to continue. The Nasdaq and S&P 500 both clocked record closing highs on Tuesday. On Thursday, the S&P 500 briefly topped 5,500 for the first time. Heading toward midyear, IBD’s market exposure guide remains at 80%-to-100% invested. Micron Technology (MU), Nike (NKE) and FedEx (FDX) headline the coming week’s brief earnings roster.





X



NOW PLAYING
What Stock Market Investors Need To Know About The PCE Report



Stocks To Watch: Five Rebounds Near Buy Points

Stocks can’t rise every day. But leaders will show resilience, bouncing back around key levels. Goldman Sachs (GS), Meta Platforms (META), Spotify (SPOT), GE Aerospace (GE) and Dick’s Sporting Goods (DKS) are among them. All have regained or tested their 50-day lines in the past couple of weeks except for Dick’s. It retook a buy point after pulling back only to short-term support. Goldman Sachs and GE are in flat bases, flirting with being actionable. Spotify pulled back after a brief breakout in early June, and is now just 1% below it’s flat base entry. Magnificent Seven member Meta has a new cup-with-handle pattern, after rallying 65% from its prior breakout in November.

Micron Technology Getting AI Lift

Memory-chip maker Micron Technology will report its fiscal third-quarter results late Wednesday. Analysts polled by FactSet expect the Boise, Idaho-based company to earn 48 cents a share on sales of $6.66 billion. In the year-earlier period, Micron lost $1.43 a share on sales of $3.75 billion. Micron stock has surged to record highs amid a cyclical upturn in memory chip sales. The company also is benefiting from sales of high-bandwidth memory devices to data centers running artificial intelligence applications. The past week’s sharp reversal — for Micron and for chip stocks in general — raised a caution flag as the stock market heads into the final week of the second quarter.

Economic Calendar: Tame Price Data, Softer Jobs

More soothing inflation news may be the coming week’s theme. Some Wall Street economists expect a tame 0.1% to 0.15% increase for the core PCE price index, the Fed’s primary inflation gauge, on Friday. That’s based on benign consumer and producer price index reports earlier this month. The PCE price data is part of the Commerce Department’s personal income and outlays report. After June’s soft retail sales, Wall Street will focus on whether spending on services, two-thirds of consumer outlays, remains solid. Initial jobless claims, out Thursday, also will be in focus, with the latest data suggesting that the labor market may finally be softening in the face of high interest rates.

 

Blue-Chip Notebook: Nike’s pre-Olympics report

Dow Jones sports apparel giant Nike reports Q4 results late Thursday. Analysts expect a fourth quarter of earnings acceleration while sales rise fractionally for a second quarter. Meanwhile, the Boston Celtics won the NBA finals wearing Nike jerseys. It is also outfitting three of four pre-tournament favorites for the Euro 2024, with the 2024 Paris Olympics a month away. NKE stock is down nearly 12% this year.

Shipping: Sizing up a post-USPS FedEx

FedEx reports its fiscal Q4 late Tuesday. The shipping/delivery leader said in April it had not reached a new contract agreement with the USPS and would go it alone when the current deal expires in September. The contract brought FedEx $2 billion annually for the past two decades. Meanwhile, analysts predict Q3 EPS will grow 8% with revenue up less than 1%. In March, FedEx guided to fiscal-year earnings growth of around 15%. Shares have consolidated for the past 12 months.


Stock Market Earnings Briefs


Carnival (CCL) reports Q2 earnings early Tuesday. FactSet expects the cruise giant’s loss to improve to 2 cents per share from 31 cents last year. Analysts predict revenue will increase 15.6% to $5.68 billion. Shares are rebounding from support in a six-month consolidation.

AeroVironment (AVAV) releases Q4 results late Wednesday. Analysts expect a 79% earnings drop, while revenue grows 1.4%. Shares of the UAV/missile maker tumbled last week, falling back into a buy zone.

Levi Strauss (LEVI), up 39% this year, reports after the stock market close on Wednesday. Earnings fell in six of seven recent quarters amid struggling sales. Analysts see a 169% earnings jump and a 9% sales gain for Q2. Shares have kept support at their 21-day line since a February breakout.

Apogee (APOG) delivers fiscal Q1 results Thursday. Analysts see a slight earnings decline, the first in five quarters, and an 8% drop in sales. The thinly traded stock has again pulled back below 10-week support ahead of earnings, but it’s still up 17% from a cup-base breakout in December.

YOU MAY ALSO LIKE:

Stock Market Forecast For The Next Six Months Is Stacking Up Well. But Don’t Ignore These Risks.

IBD Live: Learn And Analyze Growth Stocks With The Pros

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

Market Pauses As Nvidia Skids; Two Titans Near Buy Points

 

Latest article