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.
There's a little bit of darkness hanging over the market that can't be ignored. A raging Brexit drama in the U.K. and a reckoning in the oil markets are being piled on to the laps of investors still trying to size up where the U.S.-China trade war is heading. While the earnings season will almost grind to a halt after Thanksgiving, there's a flurry of retail reports coming in before the holiday, headlined by Target and Foot Locker. Target heads into its report up 22% YTD and was recently tagged as the top discount store pick at Bank of America Merrill Lynch, but there's been some anxious trading on the stock following Walmart's mixed report. Meanwhile, Foot Locker's earnings dump always turns head, even jolting Nike (NYSE:NKE), Under Armour (UAA, UA), Adidas (OTCQX:ADDYY, OTCQX:ADDDF)) and Finish Line (NASDAQ:FINL) in the past with its street-level commentary on trends. Turning to economic data, the housing sector will get a hard look by analysts in front of Turkey Day, with NAHB housing numbers due out on November 19 and the Department of Commerce set to follow on November 20 with its monthly update on housing starts and building permits. There are also PMI numbers from Europe and the U.S. blowing out on November 23, although traders will need to act quickly with the market due to close at 1:00 p.m. for the weekend with Black Friday raging.
Notable earnings reports: Agilent (NYSE:A), Urban Outfitters (NASDAQ:URBN) and JD.com (NASDAQ:JD) on November 19; Target (NYSE:TGT), Kohl's (NYSE:KSS), Lowe's (NYSE:LOW), Gap (NYSE:GPS), TJX Companies (NYSE:TJX), Best Buy (NYSE:BBY), Dollar Tree (NASDAQ:DLTR) and Foot Locker (NYSE:FL) on November 20; Deere (NYSE:DE) on November 21.
IPOs expected to price: No IPOs are expected to hit the market next week in the U.S. Through the end of last week, a total of 169 IPOs have generated proceeds of $49.2B (+30% Y/Y). The healthcare and tech sectors have accounted for right at half of all the IPO proceeds.
IPO lockup expirations: Evo Payments (NASDAQ:EVOP) on November 19; GreenSky (NASDAQ:GSKY), Kiniksa Pharmaceuticals (NASDAQ:KNSA) and Scholar Rock (NASDAQ:SRRK) on November 20; Iterum Therapeutics (NASDAQ:ITRM) on November 21.
Black Friday: Retailers due to open their doors Thanksgiving night ahead of Black Friday include Best Buy (BBY), Big Lots (NYSE:BIG), Dick's Sporting Goods (NYSE:DKS), Five Below (NASDAQ:FIVE), J.C. Penney, Kohl's (KSS), Old Navy (GPS), Sears (OTCPK:SHLDQ), Target (TGT) and Walmart (NYSE:WMT). It's been a bruising few days of trading for department store stocks in front of the biggest shopping blitz of the year. Dillard's (NYSE:DDS) is down 20% over the last week, while Macy's (NYSE:M) has peeled off 15% and Kohl's (KSS) is down 11%.
Lighting candles: SpaceX (SPACE) will set a record with its 19th launch of the year when the Falcon 9 takes off from Vandenberg Air Force Base in California on November 19. A total of 71 satellites are due to hitch a ride on the Falcon 9, perhaps none as interesting as the one from startup Helios Wire. The Canadian firm is described as a satellite-enabled Internet of Things connectivity player aiming to bring IOT to the mass market. We're not sure if we should be intrigued or scared by the concept.
What to do about Nvidia?: Add Nvidia (NASDAQ:NVDA) to the list of tech sector darlings now trading significantly below their previous levels after the chipmaker issued disappointing guidance. It's been a bit of a slow burn in tech, with Apple (NASDAQ:AAPL) -17% from its 52-week high, Amazon (NASDAQ:AMZN) -22%, Netflix (NASDAQ:NFLX) -32%, Facebook (NASDAQ:FB) -36%, Alphabet (GOOGL, GOOG) -17% and Applied Materials (NASDAQ:AMAT) -43%. After disappointing with cryptocurrency and gaming revenue, Nvidia is now 44% off its 52-week high. Would it surprise you that Nvidia took the elevator down without a single major Wall Street analyst holding a Sell-equivalent rating on it? But marching right ahead, Bank of America Merrill Lynch says it expects a quick 1-2 quarter recovery for NVIDIA to regain its growth/execution credibility. "The stock is now 18x our CY20 estimate versus 20x-45x historical range," notes BAML.
Alabama field trip: Executives from Hyundai (OTCPK:HYMLF), Mercedes-Benz (OTCPK:DDAIF), Nucor (NYSE:NUE), Honda (NYSE:HMC), Toyota (NYSE:TM) testify before the Senate Homeland Security and Governmental Affairs Committee in a field hearing on effects of trade, tariffs on Alabama manufacturing and agriculture being held at the University of South Alabama.
Sports betting in Rhode Island: The state's two casinos are due to start taking sports wagers on November 23. For now, bettors will have to visit Dover Downs Gaming's (NYSE:DDE) Twin River Casino and Tiverton Casino Hotel to place bets, but next year the casinos will take in action online and through mobile devices. Sports betting is already legal in Nevada, New Jersey, Mississippi, Delaware, West Virginia, and certain areas of New York and New Mexico. Meanwhile, there are efforts underway in Arkansas, Connecticut, Florida, Kentucky, Illinois, Indiana, Missouri, New York, Ohio and Oregon to see legislation approved before the end of 2019.
M&A tidbits: Shareholders at Zoe's Kitchen (NYSE:ZOES) will vote on the acquisition offer from Cava Group on November 20. Some institutional investors have stated that the offer undervalues the restaurant company. The tender offer start deadline is November 21 for CVC Fund VII's $1.8B acquisition of ConvergeOne (NASDAQ:CVON). The hearings being conducted by the South Carolina Public Service Commission on the merger between Dominion (NYSE:D) and SCANA (NYSE:SCG) could wrap next week.
Sales reports: RLJ Lodging Trust (NYSE:RLJ) on November 20.
Appliance wars:: Bloomingdale's plans to open a shop selling high-end LG Electronics appliances and TVs at its flagship store New York City on November 19. The department store chain owned by Macy's will also sell the appliances off its website. Bloomingdales is joining J.C. Penney (NYSE:JCP) and Home Depot (NYSE:HD) in the retail scrum trying to land big-ticket sales racked up by Sears (OTCPK:SHLDQ) in the past.
Box office preview: Warner Brothers' Fantastic Beasts: The Crimes of Grindelwald is expected to dominate this weekend by bringing in $69M. Dr. Seuss' The Grinch is expected to lop on another $39M to last week's strong debut.
Barron's mentions: The retail sector is previewed by Jack Hough in front of the holiday shopping season. Kohl’s (KSS) and Target (TGT) are called poised to outperform, while Home Depot (HD) and Tiffany (NYSE:TIF) are said to be worth their premium valuations. "Best Buy (BBY) has had a heroic run, but now faces especially difficult sales comparisons versus last year," writes Hough. TJX (TJX) is seen cooling and the outlook for J.C. Penney (JCP) and L Brands (NYSE:LB) isn't seen as promising. A long list of enticing energy stocks with strong dividend yields is laid out by the publication. Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDS.A), Occidental Petroleum (NYSE:EOG) and Schlumberger (NYSE:SLB) all make the cut. Tae Kim warns that the cracks in the Apple (AAPL) narrative continue, pointing to the two key suppliers that essentially singled out Apple for a sudden shortfall in component orders. Apple's share price slide is seen extending a bit more.
Sources: Nasdaq, EDGAR, Reuters, Wall Street Journal, Bloomberg
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