The stock market swooned into August, with the Nasdaq and S&P 500 rewinding to early June levels. The Dow Jones Industrial Average halted its [pullback at 4% below its mid-July high — and precisely at 50-day support. The Nasdaq ended Friday more than 10% from its July peak. The S&P 500 was off almost 6%. Both the Nasdaq and S&P 500 had sharply undercut their 50-day lines.
The coming week doesn’t offer much potential relief in terms of economic data. Palantir (PLTR) headlines the earnings calendar with a Monday report. Several blue chips are due to report, including Walt Disney (DIS) and Caterpillar (CAT). Amgen (AMGN) also delivers results in a big week for biotechs pharma. Gilead Sciences (GILD), Ligand Pharmaceuticals (LGND), Novo Nordisk (NVO) and Eli Lilly (LLY) also report.
↑ X NOW PLAYING Palantir Heads Into Earnings As Tech Stocks Remain Under Pressure
Stocks To Watch: Finding Strength Amid The Skid
With the stock market struggling, investors should be cautious about new purchases but should still look for stocks showing relative strength and trading near buy points. TJX Cos. (TJX), Allstate (ALL), Apple (AAPL), MercadoLibre (MELI) and Tenet Healthcare (THC) all fit that bill. TJX, Allstate and Tenet are part of defensive growth sectors that can fare well amid economic concerns. Discount retailer TJX and stalwart Apple are finding support near key levels after solid advances. Insurer Allstate and hospital operator Tenet have been trading around buy points. MercadoLibre flirted with buy signals Friday on blowout earnings for the Latin American e-commerce and payments giant.
Stock Market Econ: Soft-Landing Outlook At Risk
After a week in which incoming data kneecapped the U.S. economy’s soft-landing outlook, sending markets into a tailspin on Friday, investors will have very few pieces of data to sift in coming days that might adjust the picture. The Institute for Supply Management’s service-sector activity index, out Monday, is expected to return to expansion territory above 50, rising 2.2 points to 51, according to the FactSet consensus forecast. S&P Global’s services index is also due Monday. Initial jobless claims, out Thursday, are seen retreating to 240,000 in the week through Aug. 3 from a nearly 12-month high of 249,000 the prior week, which may have been elevated in the aftermath of Hurricane Beryl.
Jobs Report: Unemployment Jumps, Setting Up Big Fed Rate Cut; S&P 500 Dives
Entertainment: Taking A Ride On The Wolverine
Disney’sQ3 results Wednesday won’t reflect the July 26 release of “Deadpool & Wolverine,” its first R-rated flick, which has already grossed nearly $546 million worldwide. FactSet expects a 15% increase in adjusted earnings on 3.3% revenue growth. Disney is still looking to cut costs as its traditional TV assets struggle. The Dow Jones entertainment giant on Monday avoided what would have been its first strike in 40 years at its Disneyland Resort. Disney Workers Rising, which represents 14,000 Disney employees across four unions, has been negotiating with Disney management since late April. Disney rallied 37% for the year through March, but had fallen to a fractional loss by Friday.
Blue-Chip Earnings: Dow Season Nears Its End
Disney, Caterpillar and Amgen report in the coming week, leaving just a handful of Dow industrial names yet to release earnings. Caterpillar broke below support on Friday, rupturing its four-month base-building effort. 3M (MMM) was the Dow’s big winner for the second quarter, rising 44%. Apple (AAPL) climbed almost 30%.
Biotechs: Amgen, Gilead, Ligand report
Biotech companies Amgen and Gilead Sciences report in a big week for drugmakers. Early Tuesday, Amgen is projected to post earnings of $4.98 per share, minus some items, on $8.35 billion in sales. Earnings would be effectively flat, but sales are expected to rise 19.5%. For its late Thursday report, analysts expect Gilead earnings of $1.60 per share on $6.72 billion in sales, up 19.4% and 1.8%, respectively. Ligand Pharmaceuticals, a top-notch biotech stock, also plans to report its June-quarter earnings on Tuesday after the stock market close.
Pharmaceuticals: A strong Q2 for drugmakers?
Pharma leaders Zoetis (ZTS), Novo Nordisk and Eli Lilly will report their earnings Tuesday, Wednesday and Thursday, respectively. Analysts expect Zoetis, an animal health company, to report adjusted earnings of $1.49 a share on $2.31 billion in sales. Both metrics would jump 6% year over year. Novo is projected to earn 71 cents a share on $9.98 billion in sales, rising 11% and 24%. Lilly’s earnings are seen rocketing 30%. Sales are expected to increase 20% to a hair north of $10 billion.
Transportation: Ride-hailing rivals to check in
Uber (UBER) and Lyft (LYFT) report Tuesday and Wednesday. Both stocks have struggled amid concerns about potential robotaxi competition from Tesla (TSLA). Uber stock is flat year-to-date after gaining 150% last year. Lyft stock gained 26% last year but is down 21% in 2024. FactSet analysts expect Uber earnings to increase 72% to 31 cents per share. Meanwhile, expectations for sales call for a 14.5% gain to $10.6 billion. Lyft’s adjusted earnings per share are seen increasing 7% to 16 cents while sales are forecast to rise 36% to $1.39 billion. Both stocks took hard hits over the past week.
Stock Market Earnings Briefs
Monday
Palantir (PLTR) earnings for Q2 are due late Monday. Analysts estimate earnings per share of 8 cents on an adjusted basis, up 61%. Analysts target a 22% rise in revenue to $653 million. Palantir’s government business will grow 15% to $349 million, analysts estimate. Commercial business revenue will climb 32% to $306 million, analysts predict. Shares are up 43% this year.
CSX (CSX) reports Q2 results after the stock market closes on Monday. Analysts project EPS will fall 2% to 48 cents, with sales totaling $3.7 billion, flat vs. a year ago. The railway stock has been consolidating since February.
Tuesday
Planet Fitness (PLNT) reports for the second quarter on Tuesday. Analysts expect both earnings and sales for the low-cost gym operator to grow 1% vs. a year ago, down from double-digits gains in Q1. Shares are down a fraction for the year but up 22% from a March low.
Super Micro Computer (SMCI) reports fiscal Q4 results late Tuesday. Analysts expect the data-center computer maker to earn $8.10 a share, up 131% year over year, on sales of $5.31 billion, a 143% gain. SMCI stock is up 119% this year, despite a four-month decline.
Wednesday
Boot Barn (BOOT) releases Q1 2025 results late Wednesday amid a 54% rally this year. FactSet expects earnings will decline for the second quarter in a row with a 7% decrease on about 8% revenue growth to $414 million.
Occidental Petroleum (OXY) announces Q2 results after Wednesday’s stock market close. FactSet consensus has earnings jumping 13% to 77 cents per share with sales increasing 3% to $6.93 billion. OXY shares are down 1% on the year.
Thursday
Embraer (ERJ) on Thursday is expected to report earnings of 22 cents per share to mark five quarters of accelerating earnings growth. Analysts see Q2 revenue jumping 11% to $1.44 billion. ERJ stock is up 49% this year.
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