Welcome to Seeking Alpha's Stocks to Watch - a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.
The trade war has officially started and it's China that's showing the early signs of cracking amid a slumping yuan and with stocks in Shanghai down 17% this year. Investors still can't get around that certain sectors have huge tariff headwinds to battle through, although there is some positive momentum heading into the week ahead after a strong U.S. jobs print. Consumer prices are on the radar of traders next week, with CPI numbers due out on July 12. Economists expect a year-over-year increase of 2.9% for July, compared to the 2.8% pace seen in June. The core rate is seen bumping up 10 basis points to 2.3% Y/Y and 0.2% M/M. It's the calm before the storm on the earnings front, although the first round of major banks are due to report on July 13. FactSet forecasts 20% Q2 earnings growth for S&P 500 constituents, down a bit from the 25% in Q1. President Trump heads to Brussels for a NATO meeting from July 11-12 and then to the U.K. to meet up with Prime Minister Theresa May. Don't panic buy or sell off those headlines/tweets, but the oil market probably deserves a look as the Iran conundrum threatens to get worse. "In our view, a complete cutoff of Iran exports would be very hard to manage and likely result in an oil price spike above $120/bbl," warns Bank of America's Merrill Lynch's commodities research chief.
Notable earnings reports: Helen of Troy (NASDAQ:HELE) on July 9; PepsiCo (NASDAQ:PEP) and WD-40 (NASDAQ:WDFC) on July 10; Fastenal (NASDAQ:FAST) on July 11; Delta Air Lines (NYSE:DAL) on July 12; JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), PNC Financial (NYSE:PNC) and Infosys (NYSE:INFY) on July 13. See Seeking Alpha's Earnings Calendar for the complete list.
IPOs expected to trade: Chinese smartphone maker Xiaomi (XI) is due to begin trading on the Hong Kong Stock Exchange on July 9. Medicinal marijuana player RMMI is expected to debut on July 13 on the Canadian Securities Exchange after pricing at C$2.50 in June.
IPO lockup expiration: Liberty Oilfield Services (NYSE:LBRT) on July 11.
Analyst quiet period expirations: US Xpress Enterprises (NYSE:USX) and Charah Solutions (NYSE:CHRA) on July 9; Avalara (NYSE:AVLR) and Verrica Pharmaceutical (NASDAQ:VRCA) on July 10; Puxin (NYSE:NEW) on July 13.
A new beverage giant: Keurig Dr Pepper (NYSE:KDP) is expected to begin trading on July 10 after the merger officially closes on July 9. Keurig Dr Pepper will rank as the seventh-largest company in the U.S. food and beverage sector and will only trail PepsiCo (PEP) and Coca-Cola (NYSE:KO) in U.S. non-alcoholic beverage sales. Keep an eye on out for some analyst updates on how investors should trade the new beverage beast. The path of KDP will also be of interest to Mondelez International (NASDAQ:MDLZ), which holds a stake of around 13% in the new entity.
Projected dividend hike increases: Cummins (NYSE:CMI) to $1.19 from $1.08, Duke Energy (NYSE:DUK) to $0.93 from $0.89, KeyCorp (NYSE:KEY) to $0.17 from $0.12, Occidental (NYSE:OXY) to $0.78 from $0.77, Zions Banc (NASDAQ:ZION) to $0.28 from $0.24, Education Realty (NYSE:EDR) to $0.40 from $0.39, New Jersey Resources (NYSE:NJR) to $0.29 from $0.2725.
Notable analyst/investor meetings: KKR (NYSE:KKR) on July 9; Nordstrom (NYSE:JWN), Open Text (NASDAQ:OTEX), (NYSEARCA:CN) Kulicke and Soffa Industries (NASDAQ:KLIC) and Esperion Therapeutics (NASDAQ:ESPR) on July 10; General Mills (NYSE:GIS) and Entegris (NASDAQ:ENTG) on July 11.
Upcoming stocks splits: First Defiance Financial Corp (NASDAQ:FDEF) 2-for-1 split on July 12.
Business update call: Gogo (NASDAQ:GOGO) on July 13.
Bank check: Oppenheimer issued an early Q2 bank earnings preview. In a broad look, the investment firm says while quarterly results are likely to be marked by a bit of a pullback in investment banking revenues and flattish trading, the general tide of rising rates and higher net interest margins leaves the industry on track for solid double-digit core earnings growth. That earnings growth is also getting a boost by the ~4% reduction in share count compared to a year ago. Oppy lists Bank of America (NYSE:BAC), Citigroup, CIT Group (NYSE:CIT), Goldman Sachs (NYSE:GS), and Jefferies Group (NYSE:JEF) as its favorites in the sector.
U.S. airlines: Monthly traffic reports are due in from many carriers and could include some guidance updates. Keep an eye on Allegiant Travel (NASDAQ:ALGT), Southwest Airlines (NYSE:LUV), United Continental (NASDAQ:UAL), JetBlue (NASDAQ:JBLU), Hawaiian Holdings (NASDAQ:HA) and Alaska Air (NYSE:ALK) for swings.
Auto show: There's no speed limits at the Goodwood Festival of Speed in England. The event will see Formula 1 and other professional drivers max out vehicles for Porsche (VLKAY), Renault (OTC:RNSDF, OTCPK:RNLSY), BMW (OTCPK:BMWYY), McLaren, Ducati, Honda (NYSE:HMC), Harley-Davidson (NYSE:HOG), Yamaha (OTCPK:YAMHF) and Jaguar (NYSE:TTM). Also watch for news from Tesla (NASDAQ:TSLA) as the Model 3 makes its official debut in Europe. Though the company isn't a big player at auto shows in general, it has been a regular visitor to the Goodwood speedfest.
AV scene: Speakers at the Automated Vehicles Symposium from July 9-12 include execs from BMW I Ventures (OTCPK:BMWYY), Toyota (NYSE:TM), Volkswagen (VLKAY) - as well as U.S. Department of Transportation Secretary Elaine Chao. The Trump appointee has come out strongly in favor of self-driving car development.
Media M&A watch: Comcast's (NASDAQ:CMCSA) pursuit of Sky (OTCPK:SKYAY) could take another step forward this week with an offering document deadline on the calendar. Of course, the ongoing battle between Comcast and Disney for 21st Century Fox (NASDAQ:FOXA) assets is also still raging.
Crypto: The Blockchain World Conference runs from June 11-13 at Harrah's Resort in Atlantic City. Speakers include John McAfee (yes, that one), Overstock.com (NASDAQ:OSTK) CEO Patrick Byrne, Comcast Ventures director Gill Beyda, Microsoft (NASDAQ:MSFT) blockchain engineering exec Graham Mosley and a host of well-known cryptocurrency experts.
Soccer drama: Anheuser-Busch Inbev (NYSE:BUD) will take a bit of a hit in Brazil with the Ambev (NYSE:ABEV) business after Belgium topped the national team in the quarterfinals. The irony of course is that AB-InBev is headquartered in Belgium, despite the huge market presence it has in Brazil. A number of U.K. bookmakers [William Hill (OTCPK:WIMHF), Paddy Power Betfair (OTC:PDYPF)] and pub operators [Marston's (OTCPK:MARZF), Greene King (OTC:GRKGF)] could gain if England makes it through to the semi-finals. Meanwhile, shares of Juventus Football Club (OTCPK:JVTSF) have rallied almost 20% over the last few days on strong indications that Christiano Ronaldo will sign with the team. The Juventus trading volatility could continue into next week.
Box office: Disney's (NYSE:DIS) Ant-Man and the Wasp opens this weekend in 4.2K theaters in the U.S. with expectations for a haul of $88M. Universal's Jurassic World: Fallen Kingdom, Pixar's Incredibles 2 and Universal's (NYSE:SNE) The First Purge are all forecast to top $20M for the weekend. The latest Jurassic installment has already topped $1B at the box globally, but is just now opening in Japan. Shares of AMC Entertainment (NYSE:AMC) are up 20% over the last month as the U.S. box office continues to outperform.
Barron's mentions: Valuation on the cruise line sector is called compelling due to a favorable long-term outlook. Royal Caribbean (NYSE:RCL) is seen as the best positioned in the group over Carnival (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NCLH). A simple calculation for reasonably priced stocks with earnings estimates rising faster than share prices yields Intel (NASDAQ:INTC), Marathon Petroleum (NYSE:MPC), Michael Kors (KORS) and Lockheed Martin (NYSE:LMT). Toll Brothers (NYSE:TOL) is singled out as a bargain play on luxury real estate. "Toll trades for 1.3 times its book value of $29 a share, a discount to most peers. Book could reach $35 by the end of the next fiscal year in October 2019, and it should be a floor under the stock, assuming that Toll remains solidly profitable," writes Andrew Bary.
Sources: EDGAR, Bloomberg, CNBC and Reuters.
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