As the Nasdaq and S&P 500 added yet another week to their phenomenal runs, the Dow flattened out just below 39,000. The coming week sees earnings reports from Dow Jones stocks Coca-Cola (KO) and Cisco Systems (CSCO), as well as Deere (DE) and Occidental Petroleum (OXY). Some key inflation gauges are also due, as investors sort through their watchlists of late-rally breakout opportunities.
X
Stocks To Watch: Five Stocks Near Buy Points
The market’s AI-led rally continues to act well, though new buying opportunities are getting tricky to find. Samsara (IOT), UiPath (PATH), Braze (BRZE), Sprout Social (SPT) and Shift4Payments (FOUR) are all variously working on buy points. Samsara and UiPath are definitely AI plays, while Braze and Sprout Social have AI tools as well. These four software stocks were all flashing buy signals Thursday. Samara cleared an early buy point at 35.15. Shift4 jumped above an aggressive 77.51 entry on Friday. Braze scored a solid breakout above a buypoint at 58.67. Sprout inched past a 66.42 cup-with-handle buy point. UiPath cleared an early entry Thursday, and briefly topped a buy point on Friday.
Stock Market Econ: Price Indexes To Set The Week’s Tone
With the S&P 500 riding high and Federal Reserve policymakers sounding stingier about forthcoming rate cuts, incoming economic data will probably set the tone for markets. The week’s highlight will be the January consumer price index for January, out Tuesday. The FactSet consensus sees the CPI up 0.2% on the month, lowering the 12-month headline inflation rate to 2.9% from 3.4%. Much of the CPI data feeds through to the PCE price index, which is reported toward the end of the month. But lately, markets have taken their cue from the Producer Price Index, due out Friday morning. Retail sales for January are out Thursday. Economists expect a 0.1% decline amid lower auto sales.
Friday’s CPI Data Produces Sigh Of Relief For The Fed, S&P 500
Earnings Watch: Can Deere Catch Caterpillar’s Updraft?
Deere & Co. reports early Thursday. Analysts expect the bellwether for agricultural markets to report a 20% EPS decrease on a 10% revenue decline. That would mark the second straight quarter of falling sales, with more pain seen in 2024 and 2025. Investors will listen for details on Deere’s agreement with Elon Musk’s SpaceX, announced in January, to equip tractors with satellite internet. The overall outlook for U.S. and global agricultural commodities remains soft. But Deere could see some uplift from construction equipment markets, about 27% of its total, which have driven Caterpillar (CAT) up 40% in the past four months and United Rentals (URI) higher.
Oil Producers: A Peek Inside The Permian Basin
Occidental Petroleum faces expectations for a 58% drop in earnings and a 16% revenue drop when it reports Q4 results late Wednesday. That is in line with the three prior quarters. With Permian Basin producers struggling to prop their output, production numbers are likely to be key. Occidental’s ouput crept up 3% in the third quarter, better than expected. Shares have been slipping, and are down about 14% from an October high. But Warren Buffett has been buying, snapping up more than 10 million shares in December, and another 4.3 million shares in early February.
Other Energy Coal Miners Face Tough Views
Despite a three-week pullback, coal stocks have been among the market’s fastest movers since July. Warrior Coal (HCC), up 87% from a July low, reports late Wednesday. Arch Coal (ARCH), up 64% since early June, follows on Thursday morning. Analysts see a 43% EPS gain for Warrior, its first advance in three quarters. Arch faces views for a steep drop, after an unusually profitable quarter a year ago.
Heavy Construction: Aggregates Suppliers Report
Analysts expect Martin Marietta (MLM), up 14% from a November breakout, to score a 31% EPS gain on Wednesday. Fast-moving rival Vulcan Material (VMC) faces a 30% earnings target when it reports Friday. Both have a unique view into spending on industrial and infrastructure projects tied to the Federal CHIPS and Science Act, and Inflation Reduction Act.
China Stock Markets: The Year Of The Dragon Arrives
China’s mainland stock markets in Shanghai and Shenzhen closed Friday and remain closed for the Lunar New Year holiday celebration until Feb. 19. Hong Kong takes a holiday break Monday and Tuesday, reopening Wednesday.
Stock Market Earnings Briefs
Monday
Medpace (MEDP) is breaking out ahead of its fourth-quarter earnings early Monday. Analysts polled by FactSet expect the clinical research organization to report adjusted earnings of $2.22 per share and $499 million in sales, up a respective 4.7% and 26.6% year over year. Medpace is in a buy zone through 333.49.
Waste Management (WM) reports early Monday. Wayne Huizenga’s old outfit has climbed almost 9% from a December breakout. Analysts see an 18% earnings gain and a 5% rise in revenue, an uptick from its steady recent pace.
Avis Budget Group (CAR) reports Monday after the stock market close. Analysts expect a 60% EPS decline to $4.15, the fourth quarter in a row of a drop in earnings. Sales are seen rising 1% to $2.806 billion.
Tuesday
Biogen (BIIB) will report its fourth-quarter results early Tuesday. Wall Street expects Biogen’s earnings to topple 21.5% to $3.18 a share, while sales are projected to come in at $2.47 billion, down 3%.
Wednesday
Tripadvisor.com (TRIP) reports late Wednesday. Analysts expect a 39% EPS increase, year over year, to 22 cents. Revenue is seen rising 6% to $375 million, marking the seventh consecutive quarter of slowing sales growth.
Thursday
Roku (ROKU) will issue its fourth-quarter report after the stock market closes on Thursday. The streaming video platform is seen losing 57 cents a share, up from a loss of $1.70, on sales of $966 million, up 11%.
Applied Materials (AMAT) plans to announce its fiscal Q1 results late Thursday. The semiconductor equipment maker is predicted to earn $1.90 a share, down 6% from the same quarter last year, on sales of $6.48 billion, down 4%.
Yelp (YELP), the local-business information platform, will post Q4 results late Thursday. Analysts predict earnings of 38 cents a share, up 36%, on sales of $341 million, up 10%. Yelp stock is in a flat base with a 48.99 buy point.
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