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Investors will strap in next week for more interest rate reality, with Federal Reserve Chairman Jerome Powell due to testify before Congress and expected to reiterate the need to combat inflation through aggressive rate hikes. The economic reports due out next week include updates on existing home sales on June 21, initial jobless claims on June 23, and the University of Michigan reading on consumer sentiment on June 24, which could come in at a record low. FedEx (NYSE:FDX) reports earnings on June 23 in what will be a closely watched report across several sectors. Meanwhile, the four-day Amazon (NASDAQ:AMZN) re:Mars event on AI, robotics, and automation innovation could turn some heads in the tech world. In the healthcare sector, the World Health Organization is in the spotlight, with the global agency set to vote on whether to declare monkeypox a public health emergency. Notable movers off monkeypox developments have included SIGA Technologies (NASDAQ:SIGA), Bavarian Nordic (OTCPK:BVNRY) (OTCPK:BVNKF), Emergent BioSolutions (EBS), and GeoVax Labs (GOVX). Gun and ammunition stocks will also be on watch next week, with some Republicans opening the door for a potential vote on a gun bill. Smith & Wesson (NASDAQ:SWBI), Sturm, Ruger (RGR), Vista Outdoor (VSTO), Sportsman's Warehouse (SPWH), AMMO (NASDAQ:POWW) and Olin Corporation (OLN) are some of the stocks that could see extra volatility.
Earnings spotlight: Friday, June 24 CarMax (KMX).
IPO watch: Mobilicom (MOB) is expected to start trading on June 23. The Israeli tech company provides a range of autonomous system control and related cybersecurity technologies. Moilicom plans to offer 2.2M American Depositary Shares, with each ADS representing 150 ordinary shares, at the assumed price of $4.65 per ADS. Also next week, the quiet period ends on Singing Machine (NASDAQ:MICS) to free up analysts to post ratings.
Dividend watch: Companies projected to increase their quarterly dividend payouts include Matson (MATX) to $0.36 from $0.30, Kroger (KR) to $0.24 from $0.21, Darden Restaurants (DRI) to $1.20 from $1.10, and Saul Centers (BFS) to $0.59 from $0.57.
FedEx earnings preview: Only about a week after approving a boardroom reshuffle and a raised dividend, FedEx Corporation (FDX) is set to report its fiscal fourth quarter earnings after Thursday’s market close. The earnings call will be the first to be helmed by newly-named CEO Raj Subramaniam, who succeeded founder Fred Smith on June 1. While the package-delivery giant has significantly outperformed the broader market in recent months, Morgan Stanley recently warned clients that it expects the company to miss consensus EPS on earnings day. Meanwhile, JPMorgan anticipates a modest EPS beat from FDX and FY23 guide that will blanket expectations. Both firms think FedEx will hold back on issuing long-term targets until the analyst day event on June 28.
Accenture earnings preview: Accenture (ACN) will report earnings on June 23 with analysts forecasting revenue of $16.05B and EPS of $2.85 will be disclosed. Just in front of the report, Bank of America tipped that guidance from Accenture could be stronger than anticipated. The firm expects revenue growth at the upper end of the +22% to +26% constant-currency guidance range. While recession scenarios are front and center with investors, BofA believes ACN's model would be resilient in a modest recession scenario, as much of ACN's work is noted to involve mission-critical digital transformation service offerings like cloud and security services, which in many cases will likely be treated as largely non-discretionary by enterprises. While ACN management commented during the FQ2 earnings call that quarterly bookings may be lumpy, BofA anticipates a healthy book-to-bill of ~1.1X in FQ3.
Corporate events: The Amazon (AMZN) re:MARS event will run from June 21-24. The global event is focused on machine learning, automation, robotics, and space. CRISPR Therapeutics (CRSP) will host an Innovation Day on June 21. The flurry of investor events on June 22 include presentations from Modine Manufacturing Company (MOD), Intercorp Financial Services (IFS), Univar Solutions (UNVR), Cytek Biosciences (CTKB) and Bitfarms Ltd. (BITF). Volkswagen (OTCPK:VLKAF) will also hold its annual Capital Markets Day. Genpact (NYSE:G) will host an Investor and Analyst Day event on June 23. Read more about the events next week that could impact shares prices in Seeking Alpha's Catalyst Watch.
Conference schedule: Some of the notable conferences to watch for guidance and strategy updates are the Jefferies Consumer Conference, the BMO Chemicals & Packaging Conference, Wells Fargo Electric Vehicle Mini Conference, and the Cantor Fitzgerald PropTech Conference.
Data read: The latest report from Nielsen on food and beverage sales from retail outlets will get a closer look than normal amid all the inflation disruption. Beverage companies that have blazed strong in the last few Nielsen reports include Vita Coco (COCO), Keurig Dr Pepper (NASDAQ:KDP), Coca-Cola (KO), Oatly (OTLY), Constellation Brands (STZ), Pepsi (PEP), and Zevia PBC (NYSE:ZVIA). In the spirits category, Brown-Forman (BF.A) is on a recent hot streak, while PepsiCo (PEP) and Utz Brands (UTZ) have been posting solid gains in the salty snacks category. Some of the companies to watch for consumer pushback on pricing include Hershey (HSY), Hain Celestial (HAIN), Tyson Foods (TSN), Flower Foods (NYSE:FLO), Mondelez International (NASDAQ:MDLZ), and Hormel Foods (HRL). Beyond Meat (NASDAQ:BYND) is another name to watch, with shares sometimes volatile off the Nielsen update.
Fashionable things: Coty's (NYSE:COTY) partnership with Kim Kardashian formally begins on June 21 with the launch of the new Skkn By Kim skincare collection. The company said Skkn By Kim was born out of Kardashian's dream to bridge the gap between the world's most renowned dermatological experts and people at home seeking high-performance skincare. Skkn By Kim will launch through a new U.S. direct-to-consumer website that is being set up to be the go-to destination for all new product launches and will also feature tutorials and special collections. Shares of Coty are down 36% year-to-date and could use a burst of Kardashian media exposure.
Healthcare sector watch: Bank of America previewed some of the major catalysts to watch for in the healthcare sector in the months ahead. Investors were advised to stay alert on Alnylam Pharmaceuticals (NASDAQ:ALNY) with its Apollo-B readout due out, Ultragenyx Pharmaceutical (RARE) with Phase 1-2 data on GTX-120 expected, ACADIA Pharmaceuticals (ACAD) with an FDA action date on ADP set for August 4, Karuna Therapeutics (KRTX) with Phase 3 data due on a Emergent-2 trial, Ionis Pharmaceuticals (IONS) with Phase 3 data on TTR-LICA due out, and Bausch Health Companies (BHC) with a Zifaxan patent ruling expected in Q3.
Stock split The Fortinet (FTNT) 5-for-1 stock split will become effective on June 23.
Box office preview: Another huge box office weekend could be in store, with Pixar and Disney's (DIS) Lightyear tracking to open in the U.S. across more than 4,200 theaters to a $70M to $85M haul over the Father's Day weekend. Universal's (CMCSA) Jurassic World Dominion is forecast to bring in another $60M in its second weekend, while Paramount's (PARA) (PARAA) Top Gun: Maverick will add to its +$400M U.S. tally. Marcus Entertainment (NYSE:MCS) is the theater stock that has seen the best return over the last six weeks as the box office boom has run up against the stock market selling pressure.
Barron's mentions: A scan of valuations in the markets steers the publication to traditional asset managers, which are noted to be trading well below historical valuations and offering attractive yields. Industry demand is seen growing as the millennial generation saves for retirement. That adds up to strong upside for AllianceBernstein Holding (NYSE:AB), BlackRock (BLK), Invesco (IVZ), and T. Rowe Price Group (TROW). The view is that the asset managers have strong balance sheets and dividends that generally look secure even in a tougher macroeconomic backdrop. In crypto world, the Barron's warning is that the crypto winter could turn into crypto hell. The defi platforms in particular are said to look at risk due to the potential for cascading failures from a high degree of contagion between the platforms.
Sources: EDGAR, Bloomberg, CNBC, Reuters, The Hollywood Reporter
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