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.
That escalated quickly. While we gave a gentle reminder last week that interest rates would be a major topic ahead, we missed the magnitude of anxiety by more than a few degrees. But not to worry, a cavalcade of earnings reports and the Treasury Department's FX policy report due out next week could easily shift the focus off rates. Secretary Steven Mnuchin is either going to accept the reported conclusion of Treasury staff that China isn't manipulating the yuan to remove a source of anxiety from markets or declare China a currency manipulator. It's a pretty big question mark hanging in the wind and it follows Mnuchin (perhaps not playing ball) saying the stock market plunge was just a "natural correction" not a FOMC-created event. China and trade are also going to be major topics on earnings conference calls as witnessed last week when the retail sector was rocked by news on LVMH's (OTCPK:LVMHF) call of a customs crackdown on Chinese luxury imports. Along with the China/trade wildcard, execs will also be pressed on labor and input cost inflation as they post their guidance updates. You can follow all the riveting drama with the transcripts as they roll in on Seeking Alpha's transcripts page.
Notable earnings reports: Bank of America (NYSE:BAC) and Charles Schwab (NYSE:SCHW) on October 15; IBM (NYSE:IBM), Netflix (NASDAQ:NFLX), Goldman Sachs (NYSE:GS), United Continental (NASDAQ:UAL), Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS) and Domino's Pizza (NYSE:DPZ) on October 16; eBay (NASDAQ:EBAY), Kinder Morgan (NYSE:KMI), Abbott Laboratories (NYSE:ABT), Alcoa (NYSE:AA) and U.S. Bancorp (NYSE:USB) on October 17; PayPal (NASDAQ:PYPL), American Express (NYSE:AXP), Skechers (NYSE:SKX) and Philip Morris International (NYSE:PM) on October 18; Schlumberger (NYSE:SLB), Procter & Gamble (NYSE:PG) and Honeywell International (NYSE:HON) on October 19. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.
Earnings plays: The Goldman Sachs analyst team is out with a preview of the earnings season that includes naming the "25 most out-of-consensus opportunities" out of its Americas research coverage universe. The firm makes the earnings picks after reminding that last quarter saw the biggest post-earnings movements out of stocks that it has ever tracked. The Goldman list of stocks with upside to estimates includes Amazon (NASDAQ:AMZN), Celanese (NYSE:CE), Centene (NYSE:CNC), Capital One (NYSE:COF), Cisco (NASDAQ:CSCO), DXC Technology (NYSE:DXC), EOG Resources (NYSE:EOG), Intuitive Surgical (NASDAQ:ISRG), Jacobs Engineering (NYSE:JEC), JPMorgan (NYSE:JPM), Morgan Stanley (MS), Phillips 66 (NYSE:PSX), Santander Consumer USA (NYSE:SC), Simply Good Foods (NASDAQ:SMPL), Suncor Energy (NYSE:SU), Tapestry (NYSE:TPR), Trimble (NASDAQ:TRMB), Visa (NYSE:V) and Xilinx (NASDAQ:XLNX). GS sees downside to estimates for Campbell Soup (NYSE:CPB), Ecolab (NYSE:ECL), Manitowoc (NYSE:MTW), Shake Shack (NYSE:SHAK), TripAdvisor (NASDAQ:TRIP) and United Therapeutics (NASDAQ:UTHR).
IPOs expected to price: Riley Exploration-Permian (NYSE:REPX) on October 16; SI-Bone (NASDAQ:SIBN), Studio City (NYSE:MSC), PhaseBio Pharmaceuticals (NASDAQ:PHAS) and Valtech (OTC:VLTHF) on October 17; Niu Technologies (NASDAQ:NIU) LogicBio Therapeutics (NASDAQ:LOGC) and SolarWinds (NYSE:SWI) on October 18.
Analyst quiet period expirations: Elanco Animal Health (NYSE:ELAN), Eventbrite (NYSE:EB), X Financial (NYSE:XYF) and Bank7 (NASDAQ:BSVN) on October 15. Analysts will also start buzzing about Farfetch (NYSE:FTCH) on October 16. Farfetch trades about 17% higher than its IPO pricing level.
O Canada: Marijuana will be legal across Canada on October 17 to reset the landscape for cannabis producers and retail sellers. Rules vary across provinces, but in general anyone of legal age can purchase or carry 30 grams of product. Pricing is expected to be dividend across three tiers (economy/midstream/premium). Canada's supply of legal cannabis at current production levels is estimated to meet only about 30% to 60% of total demand. As stories of long lines and sold-out online inventory crop up, watch the usual suspects like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC), Cronos Group (NASDAQ:CRON), Aphria (APHQF), Aurura Cannabis (ACBFF), Organigram Holding (OTCQX:OGRMF) and Canntrust (OTC:CNTTF) for an extra toke of volatility. Feel free to share your sleeper Canadian cannabis pick in the comment stream.
Spotlight on Walmart: Walmart (NYSE:WMT) hosts its annual investor meeting on October 16 with the usual roster of high-level executives expected to present and answer questions. The retail beast plans on issuing a pre-meeting update on its strategic plans and select guidance before the meeting begins.
Spotlight on RVs: Winnebago (NYSE:WGO) reports earnings on October 17 in a release that is very likely to create some ripple across the RV sector amid huge questions on demand and raw materials costs. Camping World (NYSE:CWH), PAtrick Industries (NASDAQ:PATK), LCI Industries (NYSE:LCII) and Thor Industries (NYSE:THO) could all have a bumpy ride.
Projected dividend increases: Crown Castle (NYSE:CCI) to $1.13 from $1.05, Healthcare Services (NASDAQ:HCSG) to $0.195 from $0.1938, Hubbell (NYSE:HUBB) to $0.85 from $0.77, Idacorp (NYSE:IDA) to $0.63 from $0.59, Lincoln Electric (NASDAQ:LECO) to $0.43 from $0.39, LegacyTexas (NASDAQ:LTXB) to $0.17 from $0.16, Stepan (NYSE:SCL) to $0.245 from $0.225, S&T Bancorp (NASDAQ:STBA) $0.26 from $0.25.
Upcoming stocks splits: Globus Maritime Limited (NASDAQ:GLBS) has a 1-for-10 reverse stock split scheduled for October 15. The dry bulk shipper's reverse split will reduce the number of outstanding shares to ~3.2065M from ~32.065M.
Fedheads on tour: Notable Federal Reserve (board members/presidents) reps Lael Brainard, Robert Kaplan, Raphael Bostic, James Bullard and Randal Quarles are all scheduled to give speeches in the back half of the week. If that wasn't enough, minutes on the last FOMC meeting will also be released to give the bond market a little more to digest.
Credit card charge-offs and delinquencies reports: Alliance Data Systems (NYSE:ADS), American Express (AXP), Bank of America (BAC), Citigroup (NYSE:C), Capital One Financial (COF), Discover Financial (NYSE:DFS), JPMorgan (JPM) and Synchrony Financial (NYSE:SYF) are expected to post their monthly numbers on October 15.
M&A tidbits: The combination of Penn National Gaming (NASDAQ:PENN) and Pinnacle Entertainment (NYSE:PNK) is set to become final on October 15. Shareholders at Perry International (NASDAQ:PERY) vote on October 18 on the acquisition offer by George Feldenkreis' group.
CXO Summit 2018: The tech gathering hosted by Sierra Ventures will include Qualcomm (NASDAQ:QCOM), Starbucks (NASDAQ:SBUX), Six Flags Entertainment (NYSE:SIX), Amazon (AMZN), Comcast (NASDAQ:CMCSA), Facebook (NASDAQ:FB), Merck (NYSE:MRK) and Nike (NYSE:NKE). The CXO Summit usually features a discussion on some of the very latest tech developments out of Silicon Valley.
Drug developments: Briefing documents are due in on Shire's (NASDAQ:SHPG) Resolor treatment this week. PDufa dates arrive for Regeneron Pharmaceuticals (NASDAQ:REGN)/Sanofi’s (NYSE:SNY) dupilumab sBLA and Lundbeck (OTC:HLUKF)/Takeda’s (OTCPK:TKPHF) Trintellix sNDA. Mylan's (NASDAQ:MYL) could hear on its resubmitted ANDA for its generic to GlaxoSmithKline’s (NYSE:GSK) Advair for asthma and chronic obstructive pulmonary disease.
#Wired25: Wired celebrates its 25th anniversary with a conference in San Francisco. The all-star roster of speakers include Apple's (NASDAQ:AAPL) Jony Ive, HP's (NYSE:HP) Dion Weisler, Microsoft's (NASDAQ:MSFT) Satya Nadella, Salesforce's (NYSE:CRM) Marc Benioff, Twitter's (NYSE:TWTR) Jack Dorsey and Google's (NASDAQ:GOOGL) Sundar Pichai.
Box office: Films forecast to top $10M for the weekend include Sony's (NYSE:SNE) Venom ($30M), Warner Bros.' (NYSE:T) A Star is Born ($30M), Universal's (CMCSA) First Man ($21M) and Sony's Goosebumps 2 ($17M). Theater-related stocks are having a solid year, led by AMC Entertainment (NYSE:AMC) 31% higher and Cinemark Holdings (NYSE:CNK) up 12%.
Barron's mentions: The impact of higher interest rates on stocks is broken down in detail in this week's edition in a sector-by-sector analysis. Banking giants JPMorgan (JPM), Wells Fargo (NYSE:WFC), and Bank of America (BAC) are seen having "particularly large benefits" from higher rates because they've been growing deposits more quickly than the rest of the industry. There's a warning that higher rates could lure investors away from Amazon (AMZN) and Netflix (NFLX) because they pay no dividends and sport high valuations. Meanwhile, cash-flow machines Cisco (CSCO) and IBM (IBM) could hold up better than some of their tech peers. The complicated tracking relationship between Dell Technologies (NYSE:DVMT) and VMware (NYSE:VMW) is dissected. Anheuser-Busch InBev (NYSE:BUD) is tapped by the publication as a stock that could see double-digit returns.
Sources: Nasdaq, Reuters, EDGAR, Bloomberg.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.