The Week Ahead: A Rare Climb

 | May 04, 2014 | 7:30 PM EDT  | Comments
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Stock quotes in this article:

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wlh

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tmhc

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tyl

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ckec

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cnk

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dis

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Last week was an interesting one for stocks, as all the major indices put in a positive week -- even the beleaguered Nasdaq Composite Index which, over the past month, has been taking a shellacking of sorts with a 3.6% overall drop. The Nasdaq's larger pullback has been due in large part to poor performance from social media, technology, biotech and cyber security stocks. However, several from that group -- Facebook (FB) and Amazon (AMZN) among them -- look to have regained their footing this past week.

We also received further confirmation of a rebound in domestic manufacturing via the April manufacturing index from the Institute for Supply Management; April auto sales; several regional economic indices; and anecdotal commentary from a variety of companies.

Late last week, following the April employment report, housing stocks such as Toll Brothers (TOL), William Lyon Homes (WLH) and Taylor Morrison Homes (TMHC) regained their footing along with building-product companies.

Yes, the jobs report was mixed at best: The economy created 288,000 jobs, but 800,000 fell out of the labor force, so how could have that resulted in a drop in the unemployment rate? Oh yeah, and there was no real wage growth either.

Nonetheless, sifting through the details reveals continued growth in construction jobs. The read on this is that homebuilders are adding workers in order to catch up after the severe winter weather. When we combine this with the continued move higher in single-family housing starts and good order and backlog figures from D.R. Horton (DHI) and Ryland Group (RYL), those homebuilder stocks certainly look as if they have more upside ahead.

Turning to the week ahead, the economic-data side will be fairly light following the data-rich sessions we just witnessed. On the earnings front, we'll have our fourth consecutive week of more than 1,000 reports. While that sounds daunting, even exhausting, more than 370 S&P 500 companies have already reported their results -- 74% with earnings above the mean Wall Street estimate and 52% with better-than-expected sales. As for current-quarter guidance, 53 companies have issued earnings-per-share forecasts below analyst targets, and 19 have put out positive EPS guidance.

Getting a little deep in the weeds for the coming week, I'll be keeping eyes and ears on movie-theater operators Cinemark (CKEC) and Carmike Cinemas (CNK). Each of these should have benefited from the strong recent box-office run if they were able to entice consumers with high-margin snacks and drinks. For an idea of what's in store when it comes to ticket sales in the coming quarters, tune into this week's earnings call from Walt Disney (DIS).

We're also set to hear more on the food-cost increase, and on potential price hikes on menus and products, when Bloomin' Brands (BLMN), Wendy's (WEN), Sysco (SYY) and Tyson Foods (TSN) issue their quarterly results. Also on tap (pun intended) are a number of water companies -- American Water Works (AWK), Aqua America (WTR), and American States Water (AWR). That means an update on the drought situation. Adding to that commentary, from a crop perspective, are scheduled reports from fertilizer companies Agrium (AGU), Mosaic (MOS) and others.

On the tech front, Groupon (GRPN), AOL (AOL) and Veeco Instruments (VECO) are all on deck this week. Also set to report are pseudo-technology companies Orbitz (OWW) and TripAdvisor (TRIP).

That's a slice of what's on tap. Here's a more comprehensive look at what you can expect in the week ahead.

 

_________________

Economic Calendar

Monday, May 5

  • HSBC China Manufacturing Purchasing Managers Index (PMI)
  • Markit U.S. Services PMI
  • Institute for Supply Management (ISM) Services (April)

____

Tuesday, May 6

  • Markit Eurozone Composite PMI
  • Trade Balance (March)

____

Wednesday, May 7

  • J.P. Morgan Global Composite PMI
  • Mortgage Bankers Association (MBA) Mortgage Index (Weekly)
  • Productivity and Unit Labor Cost (1Q 2014)
  • Crude Inventories (Weekly)
  • Consumer Credit (March)

____

Thursday, May 8

  • HSBC Emerging Markets Index
  • Initial and Continuing Jobless Claims (Weekly)
  • Natural Gas Inventories (Weekly)

____

Friday, May 9

  • Wholesale Inventories (March)
  • Job Openings and Labor Turnover Survey (JOLTS) (March)

________________

Earnings Calendar

Monday, May 5

  • American Realty Capital (ARCP)
  • Cardtronics (CARD)
  • Carmike Cinemas (CKEC)
  • Leapfrog Enterprises (LEAP)
  • Medifast (MED)
  • Natural Gas Services Group (NGS)
  • Nautilus, Inc. (NLS)
  • Orbitz Worldwide (OWW)
  • PetMed Express (PETS)
  • Pfizer, Inc. (PFE)
  • Peregrine Semiconductor (PSMI)
  • FreightCar America (RAIL)
  • Ritchie Brothers Auctioneers (RBA)
  • RetailMeNot, Inc. (SALE)
  • Scotts Miracle-Gro Company (SMG)
  • Sysco Corp. (SYY)
  • Tyson Foods (TSN)
  • Texas Roadhouse (TXRH)
  • Veeco Instruments (VECO)
  • Vivus Inc. (VVUS)
  • ZipRealty, Inc. (ZIPR)

____

Tuesday, May 6

  • American International Group (AIG)
  • Anadarko Petroleum Corp. (APC)
  • Atlas Pipeline Partners (APL)
  • Activision, Inc. (ATVI)
  • CardioNet, Inc. (BEAT)
  • CBOE Holdings (CBOE)
  • Check Point Systems (CKP)
  • Cinemark Holdings (CNK)
  • Corinthian Colleges (COCO)
  • Capital Senior Living Corp. (CSU)
  • The Walt Disney Co. (DIS)
  • Discovery Holdings (DISCA)
  • Digital Realty Trust (DLR)
  • The DIRECTV Group (DTV)
  • Electronic Arts (EA)
  • Emerson Electric (EMR)
  • FireEye, Inc. (FEYE)
  • First Solar (FSLR)
  • GNC Holdings (GNC)
  • Groupon, Inc. (GRPN)
  • Hillshire Brands Co. (HSH)
  • Henry Schein Inc. (HSIC)
  • International Flavors & Fragrances (IFF)
  • Limelight Networks (LLNW)
  • Live Nation (LYV)
  • The Mosaic Company (MOS)
  • Nu Skin Enterprises (NUS)
  • Office Depot (ODP)
  • Potbelly Corp. (PBPB)
  • Regal-Beloit (RBC)
  • Sapient Corp. (SAPE)
  • TripAdvisor, Inc. (TRIP)
  • Trimble Navigation (TRMB)
  • Vulcan Materials (VMC)
  • Whole Foods Market (WFM)
  • Zagg Inc. (ZAGG)
  • Zulily, Inc. (ZU)

____

Wednesday, May 7

  • Agrium, Inc. (AGU)
  • ALLETE, Inc. (ALE)
  • AOL, Inc. (AOL)
  • American States Water (AWR)
  • Sotheby's Holdings (BID)
  • Cott Corp. (COT)
  • Coupons.com (COUP)
  • CenturyTel (CTL)
  • Caesars Entertainment (CZR)
  • Masonite International (DOOR)
  • Duke Energy (DUK)
  • 21st Century Fox (FOXA)
  • Green Mountain Coffee (GMCR)
  • Hertz Global Holdings (HTZ)
  • Humana Inc. (HUM)
  • King Digital Entertainment (KING)
  • Mondelez International (MDLZ)
  • Nature's Sunshine Products (NATR)
  • Novatel Wireless (NVTL)
  • Pepco Holdings (POM
  • Perrigo Company (PRGO)
  • Papa John's International (PZZA)
  • Bankrate Inc. (RATE)
  • RealNetworks (RNWK)
  • Rosetta Stone (RST)
  • SolarCity Corp. (SCTY)
  • Sprouts Farmers Market (SFM)
  • Spectrum Brands (SPB)
  • Strayer Education (STRA)
  • Stanley, Inc. (SXE)
  • Molson Coors Brewing (TAP)
  • Tim Hortons (THI)
  • Tesla Motors (TSLA)
  • Vitamin Shoppe (VSI)
  • Zillow Inc. (Z)

____

Thursday, May 8

  • AES Corp. (AES)
  • AMC Networks (AMCX)
  • AV Homes (AVHI)
  • American Water Works (AWK)
  • Bebe Stores (BEBE)
  • Strategic Hotels & Resorts (BEE)
  • Brookdale Senior Living (BKD)
  • Craft Brew Alliance (BREW)
  • Avis Budget Group (CAR)
  • CBS Corp. (CBS)
  • CBS Outdoor Americas (CBSO)
  • CF Industries Holdings (CF)
  • Cablevision Systems (CVC)
  • Corrections Corp. of America (CXW)
  • Dean Foods Co. (DF)
  • Cedar Fair (FUN)
  • GT Advanced Technologies (GTAT)
  • Hain Celestial Group (HAIN)
  • Inter Parfums (IPAR)
  • Kimco Realty Corp. (KIM)
  • Molycorp. (MCP)
  • Allscripts (MDRX)
  • Maiden Holdings (MHLD)
  • Monster Worldwide (MNST)
  • Mettler Toledo International (MTD)
  • Nuance Corp. (NUAN)
  • Nvidia Corp. (NVDA)
  • Priceline.com (PCLN)
  • Precision Castparts (PCP)
  • Parker Drilling (PKD)
  • Rofin-Sinar Technologies (RSTI)
  • Stifel Financial (SF)
  • Shutterstock Inc. (SSTK)
  • Symantec Corp. (SYMC)
  • Tumi Holdings (TUMI)
  • U.S. Concrete (USCR)
  • Visteon Corp. (VC)
  • Wendy's International (WEN)
  • Aqua America (WTR)
  • WhiteWave Foods (WWAV)

____

Friday, May 9

  • Alcatel Lucent (ALU)
  • Bloomin' Brands (BLMN)
  • Hilton Hotels (HLT)
  • Main Street Capital (MAIN)
  • Post Holdings (POST)
  • Polo Ralph Lauren (RL)
  • EW Scripps Co. (SSP)

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