Financial reviews within the week forward
The power market will probably be in focus subsequent week within the wake of an OPEC+ assembly that begins over the weekend. Traders will react to the group’s replace on manufacturing plans, as properly issue within the influence of European Union’s sanctions on the purchases of Russia’s seaborne crude exports and a possible G-7 worth cap on Russian oil. International central banks can even be within the highlight with the Reserve Financial institution of Australia and the Financial institution of Canada each anticipated to boost rates of interest, though FOMC members within the U.S. will probably be quiet as part of a blackout interval forward of the December 14-15 assembly. In one of many final Fedspeak updates, New York President John Williams mentioned he thinks the FOMC has a methods to go on elevating charges. In the meantime, economists assume Friday’s robust jobs report is prone to generate extra requires a 75 -point hike from some Fed officers on the December assembly. Fed watchers can even key on the upcoming producer worth index report subsequent week as an inflation gauge. Outdoors the deal with oil and rates of interest, key earnings reviews for the week forward embrace updates from AutoZone (NYSE:AZO), Costco (NASDAQ:COST), and Lululemon (NASDAQ:LULU). A busy week of company occasions consists of key investor conferences for Southwest Airways (LUV), Norfolk Southern (NSC), and Glencore (OTCPK:GLCNF), in addition to a wave of tech and media firms showing at the usGlobal TMT Convention.
Earnings highlight: Monday, December 5 – GitLab (NASDAQ:GTLB).
Earnings highlight: Tuesday, December 6 – AutoZone (AZO), MongoDB (MDB), Signet Jewelers (SIG), Sew Repair (SFIX), and Guidewire Software program (NYSE:GWRE).
Earnings highlight: Wednesday, December 7 – Brown-Forman (BF.A), Campbell Soup (NYSE:CPB), GameStop (GME).
Earnings highlight: Thursday, December 8 – Costco (COST), Broadcom (NASDAQ:AVGO), Lululemon (LULU), Chewy (NYSE:CHWY), and Vail Resorts (MTN).
Earnings highlight: Friday, December 9 – Li Auto (LI).
IPO watch: One other sluggish week is anticipated for the IPO market with solely Erayak Energy Resolution (RAYA) on the look ahead to a public debut. The IPO lockup interval expires on December 5 for a block of shares of Phoenix Motor (PEV). Shares commerce greater than 70% beneath the IPO pricing degree. Additionally of curiosity, the two-year IPO anniversary hits for DoorDash (NYSE:DASH). The inventory trades greater than 40% beneath its unique IPO pricing degree from 2020.
Lululemon earnings preview: Lululemon Athletica (LULU) will report earnings after the closing bell on December 8. The consensus marks for the quarter are for income of $1.81B to be reported by the corporate and EPS of $1.96. LULU is usually an earnings famous person. The athletic attire juggernaut has topped income expectations in 9 of the final ten quarters and analysts have been pushing their revenue estimates greater over the past 90 days regardless of the persistent inflation headwinds within the combine. On the Lululemon convention name, search for an replace on vacation gross sales momentum and doubtlessly some dialogue from administration on new verticals for LULU in tennis, golf, mountain climbing, and footwear.
Lowe’s investor convention preview: Dwelling enchancment retailer Lowe’s (NYSE:LOW) will maintain a key analyst day occasion on December 7. The corporate is anticipated to supply updates on key progress initiatives and long-term monetary targets. Wells Fargo thinks the occasion will probably be a constructive catalyst for the inventory with it serving as a reminder that Lowe’s is healthier positioned than most to handle by means of an financial downturn. Much like the corporate’s 2020 Analyst Day, the Wells analyst staff believes LOW will present three eventualities (sturdy, average, and weak market) for 2023 and categorical optimism within the capacity for it so as to add market share and handle working margin flattish to barely down. “So, whereas underlying housing fundamentals are weak, we imagine the co. will make a robust case on why HI is decoupled from housing,” previewed the agency, As well as, Lowe’s (LOW) is anticipated to reiterate full-year steerage to largely shut the working margin hole with rival Dwelling Depot (HD) over time. JPMorgan additionally anticipates that Lowe’s Analyst Day will enhance sentiment on the inventory. Whereas the market is claimed to stay cautious on housing total, JP thinks Lowe’s may stand out as a result of upside with This autumn comparable gross sales and S&G, in addition to continued religion within the firm’s capacity to drive margin outperformance in 2023 and past.
Southwest Airline investor day preview: Southwest will maintain a key investor day on December 7 that has the potential to jolt share costs throughout the airline sector. On the investor day final yr, Southwest Airways (LUV) unveiled a capability progress forecast and for greater value outlook that led to a wave of downgrades. Analysts assume the setup is extra favorable with the COVID overhang largely cleared and journey traits nonetheless wanting robust. Financial institution of America mentioned it expects to listen to a plan to develop earnings, enhance margins and broaden shareholder returns on capital. Forward of the massive occasion, Southwest is already rated as the highest airline inventory decide at each CFRA and Morgan Stanley. LUV is noticed to have the workers and gates in place to materially broaden capability in 2023, particularly after extra 737s from Boeing are delivered. Additionally a part of the bull case, Southwest Airways is claimed to face out on the metric of money generated per airplane and have low working prices in comparison with friends.
Company occasions: There are a lot of occasions scheduled for the week forward with the potential to result in share worth swings. Glencore plc (OTCPK:GLCNF), Fortune Manufacturers Dwelling & Safety (NYSE:FBHS), and Norfolk Southern (NSC) have investor occasions scheduled for December 6. Candel Therapeutics (CADL) can even host a digital Analysis and Growth Day on the identical day. Shareholders with InterPrivate II Acquisition Corp. (IPVA) will meet on December 7 to vote on the deal to take world carsharing market Getaround public in a SPAC deal. Getaround believes its digital carsharing market is properly positioned to proceed to disrupt the standard automotive possession and transportation paradigm. December 8 is a busy day of investor occasions with the Edwards Lifesciences (NYSE:EW) Investor Convention, MoneyLion (ML) Investor Day, 10x Genomics Investor Day (TXG), a Exxon Mobil (XOM) company plan replace, a particular Rogers (ROG) investor convention name, and the GE Healthcare (GE) Investor Day all on the schedule. Learn Looking for Alpha’s Catalyst Watch. for a extra full record of the week’s large occasions.
Notable conferences: The usGlobal TMT Convention appears to be headliner gathering of the week with high execs from AT&T (T), Netflix (NFLX), Comcast (NASDAQ:CMCSA), Etsy (NASDAQ:ETSY) and Intel (INTC) on the schedule. Different main conferences embrace the Raymond James Expertise Traders Convention, BofA Securities Dwelling Care Convention, Morgan Stanley International Shopper and Retail Convention, Goldman Sachs U.S. Monetary Companies Convention, Nasdaq forty seventh Investor Convention, Barclays International Expertise, Media and Telecommunications Convention, Cowen fifth Annual Hashish Convention, and Goldman Sachs 14th Annual International Automotive Convention.
Barron’s mentions: AbbVie (NYSE:ABBV) is the topic of a constructive writeup this week with the publication making the case that issues over Humira patent expirations are overshadowing underlying power. For starters, the pharma big is famous to have loads of worthwhile merchandise which have begun to fill the hole left by Humira’s decline. There are additionally billions in gross sales coming in from new Skyrizi and Rinvoq, which deal with psoriasis and arthritis, respectively. The Chicago-based firm can be persevering with to develop its hematologic oncology, which is projected to generate $7B in gross sales by 2025. In the meantime, AbbVie’s ample free money is anticipated to make its engaging dividend practically ironclad. On the valuation entrance, even after a 20% year-to-date rally, AbbVie is claimed to look low-cost for brand new traders.
Sources: EDGAR, Bloomberg, CNBC, Reuters
