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.
During what's supposed to be a sleepy period of low-volume market activity amid the dog days of August, the board of Tesla (NASDAQ:TSLA) is due to meet with financial advisers to discuss Elon Musk’s plan to take the company private. Expect at least a few reports on what exactly Musk was referring to when he tweeted “funding secured” last week and if he is actually in harm’s way with the SEC and a new lawsuit. Could China be in the mix as a funding source for Tesla? And what are the cascading implications for Volkswagen (VLKAY), Toyota (NYSE:TM), BMW (OTCPK:BMWYY), Ford (NYSE:F) and General Motors (NYSE:GM) as the Tesla drama plays out. On a more macro level next week, investors will get a good read on consumer spending trends after monthly retail sales reports come in from the U.S, China and the U.K. Retail heavyweights Walmart (NYSE:WMT), Home Depot (NYSE:HD) and Macy's (NYSE:M) are also due to report on Q2 earnings and fire off guidance updates.
Notable earnings reports: Sysco (NYSE:SYY) on August 13; Home Depot, Cree (NASDAQ:CREE) and Agilent Technologies (NYSE:A) on August 14; Cisco (NASDAQ:CSCO), Macy's and NetApp (NASDAQ:NTAP) on August 15; Nvidia (NASDAQ:NVDA), Wal-Mart, J.C. Penney (NYSE:JCP), JD.com (NASDAQ:JD), Nordstrom (NYSE:JWN) and Applied Materials (NASDAQ:AMAT) on August 16 and Deere (NYSE:DE) on August 17. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.
Spotlight on Home Depot: The Dow component is expected to report Q2 revenue of $30.01B and EPS of $2.84. Home Depot is seen posting comparable sales growth of 6.6% during the quarter. "We expect comp acceleration relative to 1Q18 given strong seasonal sales this quarter after a delayed start to Spring," notes Consumer Edge Research analyst David Schick. "Overall housing macro feels slightly less favorable than in prior quarters, though still supportive," he adds.
Quiet period expirations:Rubius Therapeutics (NASDAQ:RUBY), Crinetics Pharmaceuticals (NASDAQ:CRNX), Coastal Financial (NASDAQ:CCB), First Western Financial (NASDAQ:MYFW), Establishment Labs (NASDAQ:ESTA), Allakos (NASDAQ:ALLK), Tilray (NASDAQ:TLRY) and Constellation Pharmaceuticals (NASDAQ:CNST) on August 13; Replimune (NASDAQ:REPL) on August 14.
Projected dividend increases: Kansas City Southern (NYSE:KSU) to $0.41 from $0.36, SunTrust Banks (NYSE:STI) to $0.50 from $0.40, Community Bank System (NYSE:CBU) to $0.37 from $0.34, First American (NYSE:FAF) to $0.40 from $0.38.
Drug prices: The White House could make an announcement next week on reducing drug prices "really, really substantially" in Trumpspeak. Last May, the drug sector was taken down this path gently as the Trump blueprint was less harsh than feared on drug price caps, Medicare price negotiations and regulations to facilitate importing cheaper medicines from countries such as Canada. Keep an eye on Pfizer (NYSE:PFE), Celgene (NASDAQ:CELG), Novo Nordisk (NYSE:NVO), Acorda Therapeutics (NASDAQ:ACOR), Gilead Sciences (NASDAQ:GILD), Vertex Pharmaceuticals (NASDAQ:VRTX), AbbVie (NYSE:ABBV), Allergan (NYSE:AGN), Bristol-Myers Squibb (NYSE:BMY) , GlaxoSmithKline (NYSE:GSK), Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK) and gang.
Upcoming stocks split: Synthetic Biologics (NYSEMKT:SYN) starts trading on a split-adjusted basis on August 13 after the company's 1-for-35 reverse stock split.
Analyst/investor meetings: Equifax (NYSE:EFX) and Charles River Laboratories (NYSE:CRL) on August 14; Camping World (NYSE:CWH) is hosting an investor open house on August 15; (NASDAQ:IDXX) on August 15-16;
Bank check: The latest round of monthly reports on credit card charge offs and delinquencies is due in on August 15 from American Express (NYSE:AXP), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Capital One (NYSE:COF), Discover Financial Services (NYSE:DFS), JPMorgan (NYSE:JPM) and Synchrony Financial (NYSE:SYF).
M&A watch: The acquisition of William Partners (NYSE:WPZ) by Williams (NYSE:WMB) becomes effective on August 13. Williams Partners common units will no longer be publicly traded on the New York Stock Exchange.
Spotlight on MLPs: The Citi One-on-One MLP / Midstream Infrastructure Conference 2018 runs from August 14-16. Presenting companies include SemGroup (NYSE:SEMG), Hess Midstream Partners (NYSE:HESM), Summit Midstream Partners (NYSE:SMLP), Archrock (NYSE:AROC), Oasis Midstream Partners (NYSE:OMP) and DCP Midstream (NYSE:DCP).
FDA watch: Amicus Therapeutics (NASDAQ:FOLD) is scheduled to hold a conference call on August 13 to discuss the approval on Galafold for Fabry disease treatment.
Betting in restaurants: Buffalo Wild Wings wants to leverage sports gaming to enhance the restaurant experience for its guests amid a declining traffic trend. The restaurant betting concept opens up all kinds of future possibilities for companies such as William Hill (OTCPK:WIMHY), Caesars Entertainment (NASDAQ:CZR) and MGM Resorts (NYSE:MGM) if it can be cleared at the state level and might be a natural for Dave & Buster's Entertainment (NASDAQ:PLAY).
Box office: The typical August slowdown is expected to be in full swing next week. New Warner Bros. (NYSE:TWX) shark feature The Meg is seen winning the weekend with a $21M box office haul. The Hollywood Reporter says Warner Bros. is expected to bank big global action on the film to offset the $130M net budget. It's not impossible that Paramount's (VIA, VIAB) Mission: Impossible - Fallout could also top $20M during its third weekend. Focus Features' BlacKkKlansman is tracking to open around $10M for the weekend. Focus Features is a Comcast (NASDAQ:CMCSA) property. Through August 7, the U.S. box office is up 8.2% YTD to $7.602B.
Barron's mentions: Jack Dorsey is profiled in a cover story that credits the dual CEO for his comebacks efforts at Twitter (NYSE:TWTR) and Square (NYSE:SQ). LyondellBasell Industries (NYSE:LYB) is singled out as trading cheap compared to chemical peers (forward PE ~10). Recent investments are expected to set up LyondellBasell Industries for growth. Is there a growth company in a REIT that pays a respectable dividend? Look no further than Equinix (NASDAQ:EQIX), tips the publication. Kraft Heinz (NASDAQ:KHC) is called indigestible due to the company's weak portfolios in the food and household-products industry.
Sources: EDGAR, Bloomberg, CNBC and Reuters.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.