Stocks To Watch: Auto Sector To Storm CES

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SA Stocks To Watch

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. A podcast of Stocks to Watch is also available on Sundays on Seeking Alpha, Apple Podcasts, Stitcher and Spotify (click the highlighted links).

The first full week of the year will see traders watching for any ripple effects of the break higher in crude oil prices following the U.S. airstrike that killed a top Iranian general. The nonfarm payrolls report on January 10 will also be a headliner. Economists expect 172K jobs adds for the month vs. the strong 266K tally in November. There's also a new economic update due out from FedEx (FDX) on January 10 that could be interesting for a wide range of transportation stocks. Last month, the shipper issued a forecast for 2020 global GDP of +2.5% prior, U.S. GDP of +1.8%, industrial production of +0.8% and consumer spending of +2.2% prior. Have the trade winds shifted for FedEx? Fedspeak will blaze strong next week, with Brainard, Bullard, Evans, Williams and Clarida all on the speech circuit. Finally, as the calendar breaks free from the holiday period it enters both the Wave Season and Diet/Exercise Season. That means a crucial period for Royal Caribbean (RCL), Carnival (CCL) and Norwegian Cruise Line Holdings (NCLH) for bookings and Weight Watchers (WW), Nutrisystem (TVTY), Medifast (MED), Planet Fitness (PLNT), Nautilus (NLS), Peloton Interactive (PTON) for subscriptions, memberships and equipment sales.

Notable earnings reports: Cal-Maine Foods (CALM) on January 6; Bed Bath & Beyond (BBBY), Constellation Brands (STZ), Lennar (LEN), Walgreens Boots Alliance (WBA), Lennar (LEN) Greenbrier (GBX) on January 8; KB Home (KBH) and Acuity Brands (AYI) on January 9 and Infosys (INFY) on January 10.
Go deeper: See Seeking Alpha's complete list of earnings reporters.

CES preview: The tech sector will focus its attention on Las Vegas from January 7-10 for the annual CES trade show event. CES 2020 will feature plenty of focus on smart home products, 8K resolution screens, micro LED displays, 5G connectivity, sustainability issues, cryptocurrency innovation, AI, next-gen gaming and self-driving car developments. Some of the more interesting keynote speeches could be those from Delta Air Lines (DAL) CEO Ed Bastian, Samsung's (OTC:SSNLF) Hyun-Suk Kim, NBCUniversal's (CMCSA) Linda Yaccarino and Quibi CEO Meg Whitman. Those last two will cover NBC's new Peacock streaming service and Quibi's new streaming service. AMD (AMD) is expected to make some mobile announcements during its talk on January 6, while press conferences from Intel (INTC), Procter & Gamble (PG), Qualcomm (QCOM) and Impossible Foods (IMPSBL) could also be interesting. A new face at CES will be Apple (AAPL), making the company's first appearance in years through a speech by privacy exec Jane Horvath. New product reveals are anticipated from LG, Samsung and Sony (SNE). It's possible that Sony could also spill some details on the new PlayStation 5, due out in the back half of the year. Alphabet (GOOGL) and Amazon (AMZN) will duel like normal in featuring their digital assistants. The auto sector will be front and center at CES. Fiat Chrysler Automobiles (FCAU) plans to unveil plug-in hybrid versions of the Jeep Wrangler, Jeep Cherokee and Jeep Compass models. The automaker could also unveil the mysterious 2020 Chrysler Airflow Vision Concept. BMW is ready to show an i3 concept, while Ford (F) promises to showcase innovative technologies connected to the Mustang Mach-E and General Motors (GM) will highlight its in-vehicle Amazon Alexa voice service. Toyota (TM) and Honda (HMC) are also hinting at surprises. Auto suppliers will also be storming CES. Aptiv (APTV) will display its next-gen Smart Vehicle Architecture of complete connected car control. Bosch (OTC:BSWQY) is displaying an internally-developed lidar sensor, while Cooper-Standard (CPS) has an innovation talk scheduled. Visteon (VC) plans to talk about tech solutions for next-gen vehicles and AISIN Group (OTCPK:ASEKF) says it it will unveil a concept vehicle as part of its exhibition at the event. Meanwhile, Daimler (OTCPK:DDAIF) Chairman Ola Källenius will provide a "visionary outlook" of the future interaction between man and machine. A pioneering concept vehicle which has been inspired by one of the most innovative brands of the entertainment sector is also due to unveiled by the automaker. Seeking Alpha News will have live coverage of #CES20 all week.

IPO watch: No new U.S. pricings are expected during the first full week of the new year. The analyst quiet period expires on XP (XP) on January 6 and Sprout Social (SPT), EHang (EH) and OneConnect (OCFT) on January 7. Across the Pacific, liquid crystal material producer Beijing Bayi Space LCD Technology will be listed on the Shanghai Stock Exchange's sci-tech innovation board and Chinese restaurant chain operator Jiumaojiu International will be listed in Hong Kong.
Go deeper: Catch up on all the latest IPO news.

Projected dividend changes: A light week for dividend changes is anticipated. Synnex (SNX) is seen moving to a $0.40 payout from $0.375.
Go deeper: Read the latest dividend analysis.

M&A tidbits: The HSR filing period expires on the Anheuser Busch InBev (BUD) acquisition of Craft Brew Alliance (BREW) on January 6. The go-shop period on the $2B Thomas Bravo buyout of Instructure (INST) expires on January 8. Shareholders at Parsley Energy (PE) vote on the Jagged Peak Meger (JAG) merger on January 9, with approval expected to lead to a closing on the next day.

JPMorgan Auto Tech conference: JPMorgan is running a special auto forum alongside the 2020 International CES in Las Vegas. Companies with a presentation scheduled include Lear (LEA), Nvidia (NVDA), Gentherm (THRM), II-VI (IIVI), Cree (CREE), Marvell Technology (MRVL), Qualcomm (QCOM), Skyworks Solutions (SWKS) and Aptiv (APTV).

Analyst/investor meetings: Monster Beverage Corporation (MNST) is scheduled to provide an update on the company's business and operations on January 9. The presentation by Monster CEO Rodney Sacks arrives in front of Coca-Cola's (KO) expected launch of energy drink products in the U.S. John Deere (DE) has a CES Analyst Day event planned for January 8 and Casey's General Stores (CASY) has an event scheduled for January 9.

Citi 2020 Global TMT West Conference: AT&T (T) CFO John Stephens headlines a strong roster of tech, media and telecommunication execs presenting at the Citi conference taking place in Las Vegas alongside CES. Other companies due to present include Colony Capital (CLNY), Cogent Communications (CCOI), SBA Communications (SBAC), Ciena (CIEN), World Wrestling Entertainment (WWE), Shenandoah Telecommunications (SHEN), National CineMedia (NCMI), Eros International (EROS), American Tower Corporation (AMT), Meredith (MDP), Gannett (GCI), AMC Entertainment (AMC), j2 Global (JCOM), Discovery (DISCA), Outfront Media (OUT), Equinix (EQIX), Uniti Group (UNIT), United States Cellular Corporation (USM), American Tower (AMT), Digital Realty Trust (DLR), SBA Communications (SBAC) and Avnet (AVT).

Business update: Costco (COST) is scheduled to issue a December sales report on January 8. Sol-Gel (SLGL) has an event planned for January 8 to announces positive top-line Phase 3 trial results of Twyneo for the Treatment of acne. Buckle (BKE) is expected to update on same-store sales for December on January 9.

China EV: Tesla (TSLA) plans to deliver Model 3s to customers in China next week. The company is holding a special event in Shanghai on January 6 to commemorate the milestone. There also could be some more news out on Chinese EV automaker Lixiang Automotive, which reportedly filed for a confidential IPO in the U.S. Lixiang obtained an auto manufacturing license last year after acquiring Chongqing for 650M yuan and started mass production of the electric Ideal One Model out of a plant in Changzhou. Lixiang is the second Chinese pure-play EV company to list in the U.S. to follow in the tracks of Nio (NIO).

Golden Globes: Netflix (NFLX) hopes to land some hardware on January 5 after scoring the most film and TV nominations in the industry. Notably, the streamer placed four films in the Golden Globes' 10 best motion picture contenders for the comedy and drama categories (The Irishman, Marriage Story, The Two Popes, Dolemite Is My Name).

Data watch: Airline traffic reports will start arriving in the week ahead and could be accompanied by some Q1 guidance updates. The flurry of traffic reports could impact trading on Delta Air Lines (DAL), United Continental (UAL) American Airlines (AAL), SkyWest (SKYW), Allegiant Travel (ALGT), Alaska Air (ALK), Hawaiian Holdings (HA), Southwest Airlines (LUV), Mesa Air (MESA) and JetBlue (JBLU).

Annual meetings: Lindsay (LNN) on January 7; Acuity Brands (AYI) and Greenbrier (GBX) on January 8; Jagged Peak Energy (JAG) on January 9; Zscaler (ZS) on January 10.

Stock splits: Renren's (RENN) one-for-three reverse ADS split becomes effective on January 9. Shares of Renren recently broke back over the $1 threshold, but closed on Friday at $0.93.

Goldman Sachs Global Energy Conference: Energy execs meet in Miami Beach, Florida from January 7-8 during what could be a volatile period for the sector amid U.S.-Iran escalation. Companies due to appear include Falcon Minerals (FLMN), Range Resources (RRC), Par Pacific Holdings (PARR), California Resources Corporation (CRC), Hess Midstream (HESM), PBF Energy (PBF), Oceaneering (OII) and Hi-Crush (HCR).

Barron's mentions: The feature story makes the case that the free ride is over for Uber (UBER), Grubhub (GRUB) and other startups that will have to raise prices to give investors profitability. Chinese insurer Ping An Group (OTCPK:PIAIF) is identified as a company well on its way to becoming a tech-fueled financial supermarket. Lennar (LEN) is called a bargain, while Persimmon (OTCPK:PSMMF), Barclays (BCS), Anglo American (OTCQX:AAUKF) and BT Group (BT) are called the four U.K. stocks that could ride out Brexit smoothly.

Sources: CNBC, Reuters, Bloomberg, Wired, BBC

This article was written by

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Our news team's weekend preview of upcoming IPOs, earnings reports, conference presentations, investor days, IPO lockup expirations, FDA decisions, Barron's mentions, and other key events that could impact stocks.
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