If you thought the pace of earnings reports was busy last week, look out, as it will jump to just under 550 during the week ahead from 427. We still have just over half of the S&P 500 constituents yet to report. And with more of those constituents set to post results, we should begin to have a more solid take on how earnings growth is shaping up for the S&P 500 in the first half of 2019.
We also have several data points on the docket, albeit not major ones like we saw last week, but they will help us assess the velocity of the domestic economy. These include December reports for Factory Orders and Consumer Credit as well as the January reading for ISM's Non-Manufacturing Index. The Consumer Credit data will shed light on how much incremental debt consumers took on during the holiday shopping season and their ability to spend in the coming months as they look to address the wind up of that spending. Inside the ISM Non-Manufacturing report, it's the forward- looking order and backlog components that we'll be analyzing to get a feel for what we're apt to see from the economy this month.
In terms of the other 545 or so reports, here are some of the key ones that we'll be watching as we look to refine our investing mosaic but also revisit expected S&P 500 earnings growth for the first half of 2019:
-- Archer-Daniels-Midland (ADM) : What degree, if any, is the company being affected by from the current U.S.-China trade war?
-- Skyworks Solutions (SWKS) and Qorvo (QRVO) : The RF semiconductor companies that supply Apple (AAPL) , Samsung and others should offer some insight into not only smartphone expectations for the first half of the year, but also help pin down 5G smartphone timing.
-- Cummins Inc. (CMI) : Comments on the domestic as well as emerging market economies will be worth listening to from this engine and power generation company.
-- Chipotle Mexican Grill (CMG) : Is the new management team's Big Fix picking up steam for this Trifecta Bullpen resident?
-- Twitter (TWTR) : We've seen favorable digital advertising metrics reported this week, is Twitter losing or gaining share, and what does it mean for our position in Alphabet?
-- Nuance Communications (NUAN) : How widespread is the deployment of voice interface technology and what does it mean from a competitive perspective for Amazon, Apple and Alphabet?
-- T-Mobile USA (TMUS) : The company has recently talked about its own streaming service, which could conflict with efforts at Amazon, Apple, Disney and Alphabet. How real is that and when does this network operator envision lighting up its commercial 5G network?
Those are some of the reports and questions we'll be analyzing next week. As you can see, it's going to be another busy week, so don't stay up too late after watching the Super Bowl!
This commentary is an excerpt from the Trifecta Stocks Roundup, a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.