Wall Street Breakfast: The Week Ahead

Aug. 16, 2020 8:00 AM ET8 Comments16 Likes
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Welcome to Wall Street Brunch, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. Podcast listener? Subscribe now to receive Wall Street Breakfast by 8:00 a.m. every trading day on Seeking Alpha, iTunes, Stitcher and Spotify (click the highlighted links).

Economic reports in the week ahead include the Empire State Manufacturing Survey, a housing starts update and PMI prints. Initial jobless claims will also be watched to see if the number stays below 1M for a second consecutive week. The retail sector takes over the earnings calendar, with Walmart (NYSE:WMT), Target (NYSE:TGT), Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) all expected to show strong Q2 sales growth. Meanwhile, traders in the energy sector will be monitoring a committee of OPEC+ that oversees the implementation of output curbs and the weekly API oil inventory report. Once again, gold (XAUUSD:CUR) will be watched closely after its first down week in over two months. Credit Suisse sees a record run for the precious metal to $2,500 an ounce, while in a humorous spin, the Winklevoss twins are convinced that Bitcoin (BTC-USD) is a better investment due to the prospect of Elon Musk mining gold-laden asteroids. There might be a pair trade in there somewhere.


Earnings spotlight: JD.com (NASDAQ:JD) on August 17; Walmart (WMT), Home Depot (HD), Kohl's (NYSE:KSS), Advance Auto Parts (NYSE:AAP) and Toll Brothers (NYSE:TOL) on August 18; Lowe's (LOW), Target (TGT), TJX Companies (NYSE:TJX), Nvidia (NASDAQ:NVDA) and L Brands (NYSE:LB) on August 19; Alibaba (NYSE:BABA), BJ's Wholesale (NYSE:BJ), Estee Lauder (NYSE:EL), and Ross Stores (NASDAQ:ROST) on August 20 and Buckle (NYSE:BKE), Foot Locker (NYSE:FL) and Deeere (NYSE:DE) on August 21.
Go deeper: See Seeking Alpha's Catalyst Watch for earnings plays

IPO watch: Expected IPO pricings for next week include Harmony Biosciences (HRMY) and INHIBRX (INBX) on August 19. Also on the IPO calendar, the IPO lockup period expires for Windtree Therapeutics (OTCQB:WINT) on August 18. Quiet period expirations arrive on Jamf (NASDAQ:JAMF), Skillful Craftsman Education (NASDAQ:EDTK) and Montrose Environmental (NYSE:MEG) on August 17 - as well as Nurix Therapeutics (NASDAQ:NRIX), Inozyme Pharma (NASDAQ:INZY) and Annexon (NASDAQ:ANNX) on August 18. Go deeper: Catch up on all the latest IPO news.

M&A tidbits: The tender offer on the Madison Dearborn Partners buyout of Benefytt Technologies (NASDAQ:BFYT) is on August 19. M&A talk is swirling around Cineworld (OTCPK:CNNWF) and potential Zynga (NASDAQ:ZNGA) target Glu Mobile (NASDAQ:GLUU).

Projected dividend changes (quarterly): Intuit (NASDAQ:INTU) to $0.61 from $0.53, Community Bank Systems (NYSE:CBU) to $0.42 from $0.41.

Kandi event: Kandi Technologies (NASDAQ:KNDI) is hosting a live virtual event on August 18 to officially kick off sales of the Kandi K27 and K23 models being sold in the U.S. Customers can reserve the EV models with a fully-refundable $100 deposit, with delivery expected in Q4. Kandi says its mission is to make electric cars accessible to all through what it calls Auto EVolution. The company has teased a surprise emcee for the event that will feature an exclusive look at the sleek design and advanced technology features of K27 and K23 models. Kandi says it will also unveil additional information to consumers, dealers and other stakeholders. Shares of Kandi are up 200% over the last 90 days, despite the company recently reporting a 20% drop in Q2 revenue.

Business updates: Corteva (NYSE:CTVA) is hosting an investor update on August 17 with the company's CEO and CFO. On Semiconductor (NASDAQ:ON) has a strategic business update call set for August 18. FormFactor's (NASDAQ:FORM) Analyst Day event is scheduled for August 18 and AMERCO (NASDAQ:UHAL) has a virtual analyst and investor meeting set for August 20. Go deeper: Seeking Alpha's Catalyst Watch breaks down potential market-moving updates.

Sales updates: Progressive Corporation (NYSE:PGR) will issue a July sales report on August 19. Raymond James (NYSE:RJF) will post an operating data update on August 19 that will include assets under management, loan growth and net interest margin data.

Healthcare watch: FDA action dates arrive in the week ahead for Galapagos NV (NASDAQ:GLPG) and licensee Gilead Sciences' (NASDAQ:GILD) filgotinib for rheumatoid arthritis and BioMarin Pharmaceutical's (NASDAQ:BMRN) gene therapy Roctavian for Hemophilia A is August 21. Companies releasing abstracts with data on August 20 for the European Association for the Study of the Liver meeting later in the month include NGM Biopharmaceuticals (NASDAQ:NGM), Assembly Biosciences (NASDAQ:ASMB), Gilead Sciences (GILD), Enanta Pharmaceuticals (NASDAQ:ENTA), Vir Biotechnology (NASDAQ:VIR), Alnylam Pharmaceuticals (NASDAQ:ALNY), Viking Therapeutics (NASDAQ:VKTX), Novartis (NYSE:NVS), AstraZeneca (NYSE:AZN) and Adaptimmune Therapeutics (NASDAQ:ADAP), Eiger BioPharmaceuticals (NASDAQ:EIGR), Viking Therapeutics (VKTX) and Mirum Pharmaceuticals (NASDAQ:MIRM). Go deeper: Check out Seeking Alpha's Catalyst Watch for breakdowns on the events that stand out.

Conferences rundown: The Raymond James SMID Cap Growth Conference running from August 18-19 includes presentations from EverQuote (NASDAQ:EVER), RealReal (NASDAQ:REAL), Shift4 Payments (NYSE:FOUR), Envestnet (NYSE:ENV), nLIGHT (NASDAQ:LASR) and Limelight Networks (NASDAQ:LLNW). The Needham Medtech Virtual Conference includes presentations by LeMaitre Vascular (NASDAQ:LMAT), AtriCure (NASDAQ:ATRC), InMode (NASDAQ:INMD), CryoLife (NYSE:CRY), Invacare (NYSE:IVC), GenMark Diagnostics (NASDAQ:GNMK) and Merit Medical Systems (NASDAQ:MMSI). In the energy industry, the virtual version of the Enercom Oil & Gas Conference will include presentations by Cornstock Resources (NYSE:CRK), GeoPark (OTC:GRPK), SM Energy (NYSE:SM), Goodrich Petroleum (NYSEMKT:GDP), Earthstone Energy (NYSE:ESTE), Sundance Energy (NASDAQ:SNDE), Penn Virginia (PVA), Ring Energy (NYSEMKT:REI), Cimarex Energy (NYSE:XEC) and DCP Midstream (NYSE:DCP). Finally, the JMP Securities Cannabis Technology Forum features sessions with execs from Akerna Corp. (NASDAQ:KERN), Driven Deliveries, Inc. (OTCQB:DRVD) and Helix Technologies (OTCQB:HLIX). Go deeper: See Seeking Alpha's Catalyst Watch for which presentations may stand out.

Movies: AMC Entertainment (NYSE:AMC), Cinemark (NYSE:CNK), Regal Entertainment (NYSE:RGC) and Marcus (NYSE:MCS) will open some theaters next week as the industry goes for a proof-of-life test during the pandemic. The chains are planning on instituting safety measures like enhanced cleaning, fresh-air replacement and staggered showtimes with limited capacity. The box office tallies won't be as important as building some confidence with moviegoers in front of bigger releases like Christopher Nolan's Tenet during Labor Day weekend. Companies likes National CineMedia (NASDAQ:NCMI) and IMAX (NYSE:IMAX) will also be hoping for a steady return of theater business.

Product watch: On Semiconductor (ON) is introducing its Voice User Interface solution for local and cloud during a webinar. The company says the solution can provide advanced voice triggering, voice recognition and processing functions, with ultra-low power consumption.

Data updates: Packaging shipment and pricing data is due in for containerboards and boxboards. Sonoco Products (NYSE:SON), Greif (NYSE:GEF), International Paper (NYSE:IP), and WestRock Company (NYSE:WRK) are some names that could move off the pricing report. Appliance shipments data is due in from the Association of Home Appliance Manufacturers. Shares of Whirlpool rose last month when the shipments data turned positive.

Barron's mentions: High-profile stock splits by Apple and Tesla has Barron's wondering what S&P 500 Index companies might be the next to split their shares. Of note, S&P companies with share prices over $1,000 include Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), AutoZone (NYSE:AZO), Chipotle (NYSE:CMG), Booking Holdings (NASDAQ:BKNG) and NVR (NYSE:NVR) all have shares prices over $1,000. Whether or not it defies logic, holders of shares that split generally make money in the short term, notes the publication. Remember the trade war? Cybersecurity specialists Fortinet (NASDAQ:FTNT) and Palo Alto Networks (NYSE:PANW) are identified as two stocks that outperform during rising tension between the U.S. and China, while Nike (NYSE:NKE) is said to have some reshoring risk. In a look at Big Pharma, Merck (NYSE:MRK) is called a strong play at a reasonable price. EPS growth of the core business of more than 10% is anticipated. On healthcare (NYSEARCA:XLV) in general, a divided election is called the best outcome for investors in the sector to prevent either party from enacting big legislation.

Sources: Bloomberg, CNBC, The Verge, Reuters, EDGAR

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