It's going to be a busy upcoming week for the markets while most of the U.S. focused on nursing their post-Super Bowl hangovers. So, while you're laying around feeling bloated and drunk on Sunday night, let QTR give you a quick rundown of what's going to be heading your way in the world of the markets this week.
Monday is going to mark the first female Fed chairperson in the history of the Federal Reserve when Janet Yellen is sworn in.
Additionally, the January jobs report is going to be coming out on Friday - a report that investors across the board are looking for to stifle some of the emerging market doubt and concern that has plagued the market to start the year. Nobody paid much attention to December's report due to both its seasonality and the severe weather across the nation. Expectations for the report are 184,000 new jobs at a rate of 6.7%.
Reuters reported on the shaky and unceremonious end to January:
The CBOE Volatility Index .VIX, a measure of investor anxiety, rose 34.2 percent during January to end the month at 18.41, after wrapping up 2013 at 13.72. The VIX remains below the long-term average of 20, however, and has not traded above 19 since October.
For the month of January, the Dow fell 5.3 percent and the S&P 500 lost 3.6 percent - marking their worst monthly percentage declines since May 2012. The Nasdaq fell 1.7 percent in January, its worst month since October 2012.
Here's the earnings that we can expect to drive the market and start the next month next week.
- Janet Yellen is officially sworn in and will take the helm of the Federal Reserve.
- Food distributor Sysco (SYY) is expected to be one of the firsts to report earnings, early morning Monday. EPS estimates are $0.40/share.
- Yum Brands (YUM) is set to report earnings on Monday after the market closes. Analysts are expecting net income of $366.59 million on $1.27 per share. Analysts are expecting revenue of $4.27 billion, compares with $4.15 billion in the same quarter one year ago.
- Aflac (AFL) is part of a slew of insurance companies set to lead off the week with earnings, reporting after market close. Analysts are going to be expecting $1.40/share on revenues of $5.96 billion. These figures represent decreases for both metrics from the same quarter one year ago.
- Retailer Michael Kors (KORS) also reports on Tuesday. According to Zacks Investment Research, based on 12 analysts' forecasts, the consensus EPS forecast for the quarter is $0.86. The reported EPS for the same quarter last year was $0.64.
- Additionally, Sirius (SIRI) will be reporting to start the day. According to Zacks Investment Research, based on 7 analysts' forecasts, the consensus EPS forecast for the quarter is $0.02. The reported EPS for the same quarter last year was $0.02.
- Baidu (BIDU) is set to report pre-market on Wednesday to lead off the day.
- Pharma giant GlaxoSmithKline (GSK) is set to report before market opens on Wednesday.
- Always under heavy scrutiny is Green Mountain Coffee (GMCR), which will report after the bell. GMCR is my leading candidate for an options play based on earnings for the coming week - their recent earnings have been volatile quarter after quarter. Analysts expect an 18.4% rise in earnings to 90 cents per share, the slowest growth in five quarters. Revenue is seen rising 4.5% to $1.4 billion.
- Social media names like Yelp (YELP), Twitter (TWTR) and Pandora (P) are going to be reporting after market close. I'm bearish on all three of these names heading into their report.
- Thursday we see the reports of Aetna (AET) and AOL (AOL) before the market opens. Health insurers are going to be under a microscope as they report this week with the focus being on the Affordable Care Act's potential negative effect on them.
- Casual dining will be watching the report of Dunkin'(DNKN), which is set to also report before the market opens. According to Zacks Investment Research, based on 15 analysts' forecasts, the consensus EPS forecast for the quarter is $0.4. The reported EPS for the same quarter last year was $0.34.
- Another candidate for major volatility post-earnings is also social media stock LinkedIn (LNKD), which reports after the market closes. Analysts are expecting $0.39 in earnings per share on revenue of $437.9 million.
- Companies like Moody's (MCO) and Apollo (APO) wrap the week up with earnings on Friday.
- All eyes will be on the January jobs report.
Here's what the rest of the economic calendar looks like in the coming week, compliments of Bloomberg:
QTR expects the markets to calm in the coming week, starting February a bit less volatile than January. I expect companies like Disney (DIS) and General Motors (GM) to help direct the market's movement in the coming week.
Additionally, QTR expects to see former Indianapolite Peyton Manning as the first quarterback to win Super Bowls with two different teams this weekend - but, QTR is paying extra to take Denver without having the lay the points.
Best of luck to all investors in the coming week.
Additional disclosure: I am long AFL, GM, KORS and short YELP, P.