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  1. Home
  2. / Investing
  3. / Technology

The Week Ahead: Earnings Firehose

Flow of reports gets heavy in the coming days.
By CHRIS VERSACE AND LENORE HAWKINS Apr 26, 2015 | 05:00 PM EDT
Stocks quotes in this article: MSFT, AMZN, SBUX, GOOGL, S, TMUS, VZ, T, CMCSA, TWC, AAPL, HOT, CAT, CSX, TRN, ARII, RAIL, DE, EQIX, DFT, DLR, RAX, QCOM, SWKS, CRUS, UA

While we entered the past week with a punch list skewed toward corporate earnings and some economic data, what we got during the week serves as a reminder that the stock market can still offer up some unexpected surprises.

While earnings remained choppy in general as a result of the strong dollar and other 1Q 2015 factors we've mentioned previously, the Nasdaq Composite Index finally joined its sister indices in reaching a new level on the back of stronger-than-expected tech earnings from Microsoft (MSFT), Amazon.com (AMZN), Starbucks (SBUX) and others that surprised with earnings on the upside.

Other surprises during the week included Google's (GOOGL) announced new Fi wireless service that brings the search company into a tighter relationship with Sprint (S) and T-Mobile (TMUS) to compete with Verizon Wireless (VZ) and AT&T (T). Comcast (CMCSA) called off its planned deal with Time Warner Cable (TWC). And while not exactly a surprise, Apple's (AAPL) new Apple Watch started shipping and, as we expected, the early read is it's a device you may want to have, but don't need to have. Even though Starwood Hotels (HOT) has announced you can use the Apple Watch to open your hotel room door at over 100 of its hotels, we'll wait for the second or third iteration.

The economic data we did get last week -- the various flash PMI reports from Markit Economics, the March durable-orders report and new-home sales figures for March -- all pointed to a continued slowing in the domestic economy as well as in China and Japan. That sure seems to support Caterpillar's (CAT) updated 2.7% global growth forecast this year, barely unchanged from 2.6% last year. Even CSX's (CSX) outlook for certain commodity volumes, like petroleum, calls for flattish performance in the coming quarters as domestic rig counts continue to fall. To us, it's more confirmation the Fed will be doing nothing with interest rates in the short term.

This week, we'll be getting the first look at 1Q 2015 GDP, and much like last year's first quarter, Wall Street believes the economy took a hit during the first three months of 2015. Current consensus expectations per Bloomberg stand at 1%, but you know that's a tad aggressive when even the Atlanta Federal Reserve cut its 1Q 2015 GDP forecast to 0% in early April from 1.9% in February. Irrespective of the initial GDP reading, the vector is down and that will weigh on the velocity of economic growth, at least in the first half of the year. In other words, that forthcoming data point will only add to the existing runway the Fed has in front of it to hold off moving interest rates higher, and we expect no change at all on Wednesday's FOMC rate announcement.

Looking at the rest of the economic data coming at us in the week ahead, personal income and spending, a favorite of ours, will be reported for March. Over the last few months, the savings rate has ticked up despite the lack of meaningful change in disposable income. Was this related to weather shut-in or growing consumer unease? We'll have a better sense on Thursday and what it may mean for retailers and restaurant stocks.

As we pointed out last Wednesday, the real test of the domestic economy will be the April-May data we get in the coming weeks. Between now and then, we have a helluva lot more earnings reports to digest. The frequency of those reports hits a fever pitch this week with more than 1,050 companies on deck -- a 72% jump over the number last week. Stepping back a bit, this is the third week of March quarter earnings and it's time to start collecting what were individual company results and connecting dots to form clear signals as to what is occurring in different industries.

For example, the CSX comment above combined with a drop in new railcar orders that was mentioned in Trinity Industries' (TRN) quarterly results means we are likely to see more cautious guidance from American Railcar (ARII), FreightCar America (RAIL) and others. Even though Caterpillar beat revenue expectations, top-line sales were down over the trailing 12 months, which doesn't bode well for Deere (DE), which reports in late May. Both Microsoft and Amazon surprised on the upside with their cloud businesses, and this means giving data center companies, like Equinix (EQIX), DuPont Fabros Technology (DFT), Digital Realty Trust (DLR) or Rackspace (RAX), another look.

A word to the wise: Don't be fooled by Monday's lack of headline grabbers during trading hours. The day will be centered on Apple's results after the market close, and given the significant presence Apple shares have in the Nasdaq, as Apple goes, so goes the Nasdaq on Tuesday. Those results will either propel or weigh down key suppliers such as Qualcomm (QCOM), Skyworks Solutions (SWKS), Cirrus Logic (CRUS) and others. While not fun to do, you may want to revisit stop losses on Monday and tighten them up.

As you can see below in the earnings calendar for this week, Tuesday through Thursday will be the most challenging as we drink from not the firehose, but more like the hydrant itself. Our advice is to take the weekend, revisit that shopping list of yours we've been suggesting you build and get ready. Opportunities will present themselves, just like Under Armour (UA) did this week, but unless you're prepared, you're likely to miss them.

Below is a more detailed look at what's coming in the week ahead. Be sure to check back for our midweek column, in which we will dish on the first half of the trading week and other key matters and thoughts, as well as how to play it all.

Economic Calendar: Monday, April 27 - Friday, May 1


28-Apr Case-Shiller 20-city Index
28-Apr Consumer Confidence
29-Apr MBA Mortgage Index
29-Apr GDP-Adv.
29-Apr Chain Deflator-Adv.
29-Apr Pending Home Sales
29-Apr Crude Inventories
29-Apr FOMC Rate Decision
30-Apr Initial Claims
30-Apr Continuing Claims
30-Apr Personal Income
30-Apr Personal Spending
30-Apr PCE Prices - Core
30-Apr Employment Cost Index
30-Apr Chicago PMI
30-Apr Natural Gas Inventories
1-May ISM Index
1-May Construction Spending
1-May Michigan Sentiment - Final
1-May Auto Sales
1-May Truck Sales
1-May Markit Japan Manufacturing Index
1-May Markit US Manufacturing PMI
 


Earnings Calendar: Monday, April 27 - Friday, May 1


Monday, April 27
AAPL Apple Inc
ACW Accuride Corp
AMKR Amkor Tech Inc
CUDA Barracuda Ntwrk
HTLF Heartland Fincl
MCY Mercury Genl Cp
OSTK Overstock.com
PCL Plum Creek Tmbr
PDS Precision Drill
PLT Plantronics Inc
QSR Restaurant Bran..
ROP Roper Inds Inc
RTEC Rudolph Tech
SOHU Sohu.com Inc
TCS Container Store
TEN Tenneco Inc


Tuesday, April 28
ABX Barrick Gold Cp
AET Aetna Inc-new
AFG Amer Finl Group
AGCO Agco Corp
AKAM Akamai Tech
BGFV Big 5 Sporting
BMY Bristol-myers
BP Bp Plc
BWLD Buffalo Wld Wng
CMI Cummins Inc
CNX Consol Energy
COH Coach Inc
CPLA Capella Educatn
CR Crane Co
CRUS Cirrus Logic
CTS Cts Corp
DFRG Del Friscos Rst
F Ford Motor Co
FDP Fresh Del Monte
FLWS 1800flowers.com
GLW Corning Inc
GPRO Gopro Inc-a
HELE Helen Of Troy
IIVI Ii-vi Incorp
INAP Internap Netwrk
IPI Intrepid Potash
JBLU Jetblue Airways
JEC Jacobs Engin Gr
JJSF J&j Snack Foods
LRN K12 Inc
MAS Masco
MHFI Mcgraw Hill Fin
MRK Merck & Co Inc
MSTR Microstrategy
MTSI Ma-com Tech Sol
OMI Owens & Minor
OSK Oshkosh Corp
PAG Penske Auto Grp
PFE Pfizer Inc
PH Parker Hannifin
SERV Servicemastr Gh
SIRI Sirius Xm Hldgs
ST Sensata Technol
SVU Supervalu Inc
SWFT Swift Transport
SWI Solarwinds Inc
TWTR Twitter Inc
TXT Textron Inc
UPS Utd Parcel Srvc
VDSI Vasco Data Sec
WAT Waters Corp
WDC Western Digital
WDR Waddell&reed -a
WHR Whirlpool Corp
WNC Wabash National
WWW Wolverine World
YNDX Yandex Nv-a


Wednesday, April 29
ACCO Acco Brands Cp
ADT Adt Corp
AFL Aflac Inc
ANTM Anthem Inc.
AUY Yamana Gold Inc
AVY Avery Dennison
BIDU Baidu Inc
CAVM Cavium Inc
CEB Corp Exec Brd
CG Carlyle Group
DHX Dice Holdings
EDR Education Rlty
EQIX Equinix Inc
ESRX Express Scripts
ETN Eaton Corp Plc
FCAU Fiat Chrysler A..
FDML Federal Mogul-a
FLEX Flextronic Intl
FUN Cedar Fair
GD Genl Dynamics
GEL Genesis Energy
GNW Genworth Finl
GRMN Garmin Ltd
GT Goodyear Tire
HAWK Blackhawk Netwk
HLT Hilton Ww Hldg
HOLX Hologic Inc
HOT Starwood Hotels
IACI Iac/interactive..
IDCC Interdigitl Inc
IP Intl Paper
LINE Linn Energy Llc
LL Lumber Liquidat
LOCK Lifelock Inc
LVLT Level 3 Comm
MA Mastercard Inc
MDLZ Mondelez Intl
NOC Northrop Grummn
NSC Norfolk Southrn
NSR Neustar Inc -a
OI Owens-illinois
PNRA Panera Bread Co
PX Praxair Inc
SAM Boston Beer Inc
SAVE Spirit Airlines
SFLY Shutterfly Inc
SKT Tanger Fact Out
SLAB Silicon Lab Inc
SNCR Synchronoss Tec
TPX Tempur Sealy
TRI Thomson Reuters
TWX Time Warner Inc
WM Waste Mgmt-new
YELP Yelp Inc


Thursday, April 30
ADP Automatic Data ..
AKR Acadia Rlty Tr
ALLE Allegion Plc
APD Air Prods & Che
ARG Airgas Inc
ARII Amer Railcar
ARW Arrow Electroni
AVP Avon Prods Inc
AWI Armstrong World
BG Bunge Ltd
BRKS Brooks Automatn
BWA Borg Warner Inc
BYD Boyd Gaming Cp
BZH Beazer Homes
CACI Caci Intl A
CAH Cardinal Health
CCE Coca-cola Entrp
CCMP Cabot Microelec
CELG Celgene Corp
CL Colgate Palmoli
COLM Columbia Sports
COP Conocophillips
CWT Calif Water Svc
CY Cypress Semicon
DBD Diebold Inc
DIN Dineequity Inc
DLPH Delphi Auto Plc
DWA Dreamworks Anim
EBIO Eleven Biotherp
EPD Enterprise Prod
EXPE Expedia Inc
FBHS Fortune Brd H&s
FEYE Fireeye Inc
FHCO Female Health
GILD Gilead Sciences
GTI Graftech Intl
HAR Harman Intl Ind
IMAX Imax Corp
IMMR Immersion Corp
INGR Ingredion Inc
IVZ Invesco Ltd
JDSU Jds Uniphase Cp
LBY Libbey Inc
LKQ Lkq Corp
LLL L-3 Comm Hldgs
LLNW Limelight Netwk
LNC Lincoln Natl-in
LNKD Linkedin Corp-a
LONG Elong Inc-adr
LPLA Lpl Finl Hldgs
LUNMF.PK Lundin Mining C..
LYV Live Nation Ent
MAR Marriott Intl-a
MOBL Mobile Iron Inc
MOS Mosaic Co/the
MPC Marathon Petrol
MPLX Mplx Lp
MTW Manitowoc Inc
MUR Murphy Oil
NTRI Nutri/system
NXPI Nxp Semiconduct
NYT Ny Times A
O Realty Income
PF Pinnacle Foods
PKI Perkinelmer Inc
POT Potash Sask
PPC Pilgrims Pride
RDWR Radware Ltd
RGC Regal Entmnt Gp
RGS Regis Corp/mn
ROK Rockwell Automt
ROVI Rovi Corp
RYL Ryland Grp Inc
SEE Sealed Air Corp
SNE Sony Corp Adr
SNMX Senomyx Inc
SPB Spectrum Brands
SPWR Sunpower Corp-a
STM Stmicroelectron
SWKS Skyworks Solutn
SYNC Synacor Inc
TASR Taser Intl Inc
TEVA Teva Pharm Adr
TEX Terex Corp
TKR Timken Co
TNAV Telenav Inc
TRMB Trimble Navigat
TWC Time Warner Cab
UFS Domtar Corp
V Visa Inc-a
VA Virgin America ..
VALE Vale Sa
VIA Viacom Inc-a
WTS Watts Water Tec
WWE World Wrestling
XOM Exxon Mobil Crp
XYL Xylem Inc


Friday, May 1
AIMC Altra Holdings
ATHN Athenahealth In
BCO Brinks Co The
BERY Berry Plastics
CBOE Cboe Holdings
CLX Clorox Co
CVS Cvs Caremark Cp
CVX Chevron Corp
FLS Flowserve Corp
GWR Genesee & Wyo
HPY Heartland Paymt
ISBC Investors Bancp
ITT Itt Corp
LM Legg Mason Inc
MCO Moodys Corp
MSG Madison Square
NWL Newell Rubbermd
RUTH Ruths Hospitlty
VFC V F Corp
WY Weyerhaeuser Co
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At the time of publication, Versace and Hawkins had no positions in the stocks mentioned, but The Thematic Growth Portfolio Versace manages is long ARII, DFT, QCOM, and UA.

TAGS: Investing | U.S. Equity | Technology

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