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The earnings calendar is loaded next week, with heavyweights reporting in every sector. All told, about 35% of the companies in the S&P 500 Index will spill numbers next week. Some of the key reports include updates from Credit Suisse (CS) preview, Coca-Cola (NYSE:KO) preview, Microsoft (MSFT) preview, Alphabet (GOOG) preview, Altria (MO) preview and Amazon (AMZN) preview. While the earnings season is off to a relatively solid start, concerns over the impact of inflation, high interest rates, and a potential U.S. recession are still very much in the mix. Economic releases of note in the week ahead include consumer confidence and new home sales on April 25, durable goods orders on April 26, and the closely-watched employment cost index on April 28. Federal Reserve members will be out on the speaking circuit on Monday before the blackout period begins in advance of the FOMC meeting on May 2-3. On the political front, the House may vote on a bill that would raise the U.S. debt limit for about a year and cut federal spending.
Volatility watch: Short interest on Kohl's (KSS) and Nordstrom (JWN) is elevated as traders watch for negative guidance updates. Options trading has moved notably higher on Eos Energy Enterprises (EOSE) and Amyris (AMRS).
Dividend watch: Companies forecast to boost their quarterly payouts include AGCO (AGCO) to $0.28 from $0.24, Tegna (TGNA) to $0.11 from $0.095, Ethan Allen (ETD) to $0.35 from $0.32, and Forward Air (FWRD) to $0.26 from $0.24. See Seeking Alpha's list of Quick Dividend Stock Picks.
Healthcare watch: Outside the flurry of earnings reports in the week ahead, there are plenty of other items of interest for the healthcare sector. The FDA action date hits for Seres Therapeutics (NASDAQ:MCRB) and its SER-109 Biologics License Application. The company expects to launch the oral microbiome therapeutic in the weeks following a potential FDA approval. Shares of Seres Therapeutic are up 17% year-to-date in advance of the decision. Ionis Pharmaceuticals (NASDAQ:IONS) and Biogen (BIIB) will be on watch with the FDA action date arriving on the review of tofersen. The companies have been partnering on antisense drug development for a decade. Meanwhile, the Stifel 2023 Targeted Oncology Days event will feature presentations by Kymera Therapeutics (KYMR), Black Diamond Therapeutics (BDTX), IGM Biosciences (IGMS), Kura Oncology (KURA), Viracta Therapeutics (VIRX), and a number of other healthcare companies. The MJ Unpacked event in New York City will showcase hundreds of cannabis CPG brands with retailers, manufacturers, and investors.
Amazon earnings preview: Amazon (AMZN) will report earnings on April 27 to expectations for revenue of $124.6B and EPS of $0.22. The tech giant has a wide guidance range for operating income of $0 to $4B and analysts are all over the map as they try to factor in the inflation headwinds against the company's cost-cutting efforts. As always, AWS is top of mind with the Amazon earnings report. JPMorgan noted a recent shareholder letter outlined still-strong customer demand for AWS and a positive long-term growth outlook, which bodes well for the readout on the earnings call. The firm sees increasing potential for positive margin surprises as 2023 progresses with Amazon generating retail efficiencies. Meanwhile, Bank of America said decelerating inflation and a more favorable consumer spending environment could boost demand for the balance of the year, while the prospect of lower interest rates could help the trading multiple expand again by the end of the year. Read the most recent breakdowns on Amazon from Seeking Alpha analysts.
Corporate events: Shareholders with Teck Resources (NYSE:TECK) will vote on April 26 on the plan to split the company into two separate entities. If approved, Teck Metals will be growth-oriented, with premier, low-cost base metals production, a top-tier copper development portfolio and a disciplined capital returns policy. Meanwhile, EVR will be a high-margin Canadian steelmaking coal producer, focused on long-term cash generation and providing cash returns to shareholders. Wayfair (NYSE:W) will hold its annual Way Day sale starting on April 26 at midnight. The online retailer has advertised that the global two-day sales event will feature the lowest prices of the year with free shipping on everything. Shares of Wayfair have rallied in the past following updates on Way Day online sales. Shareholders with NuVasive (NUVA) and Globus Medical (NYSE:GMED) will vote on April 27 on the planned merger between the two companies. The Black Knight (BKI)-Intercontinental Exchange (ICE) merger will also go to a vote on April 28. The Check out Seeking Alpha's Catalyst Watch for more events scheduled for next week.
Quant ratings: Stocks with recent quant rating changes include Potbelly (PBPB) to Strong Buy from Hold, Polaris (PII) to Buy from Hold, and Comstock (LODE) to Sell from Hold. See the stocks with the very highest rated Seeking Alpha Quant Ratings.
Box office: Universal's (CMCSA) The Super Mario Bros. Movie is headed for a third weekend atop the domestic box-office charts. After the animated hit set a five-day opening record, grabbing $204M over Easter weekend, the movie retained an unusually strong amount of business for its second weekend, which saw it grab $92M, making it the year's top-grossing entry. If it stays on that pace, another $55M-plus is in store this weekend, likely good enough to stay on top for a third straight interval.
Barron's mentions: TJX Companies (NYSE:TJX) is recommended by the publication with shares trading at a slight discount to their historical average. The retail stock is noted to be swapping hands for 22X forward earnings vs. the five-year historical average of 22.7X. However, during the last economic downturn, TJX saw its earnings per share double in three years. TJX management has noted that 2023 is off to a strong start, which could be an indication that TJX prospers again during a period of economic uncertainty. The cover story this week delves into suppliers to the automobile industry set to benefit from the explosion in software-defined vehicles. Nvidia (NVDA), Qualcomm (QCOM), Ambarella (AMBA), BlackBerry (BB), and Zuora (ZUO) are some of the companies expected to see revenue grow from their connection to automotive digital services.
Sources: EDGAR, Bloomberg, CNBC, Reuters
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