Here's your Investing Action Plan: What you need to know as an investor for the coming week.
More tech giants -- Apple (AAPL), Facebook (FB), Amazon (AMZN) and Alphabet (GOOGL) -- report earnings, as do the biggest names in oil, such as Exxon Mobil (XOM) and Chevron (CVX), along with fast-food leader McDonald's (MCD) and aerospace giant Boeing (BA).
Federal Reserve policymakers will also meet, an early reading on Q2 GDP growth is due out, and European regulators have their turn releasing stress-test results on their banks.
Apple Sales, Earnings To Drop
Wall Street analysts have been busy cutting price targets on Apple stock ahead of the company's fiscal Q3 earnings report, due out after the close Tuesday. Analysts polled by Thomson Reuters expect Apple to earn $1.38 a share, down 25% year over year, on sales of $42.11 billion, down 15%, in the June quarter. In April, Apple reported its first quarterly revenue drop since 2003 as iPhone sales slowed.
The consensus outlook for Apple has earnings continuing to retreat over the next few quarters, and demand for this fall's iPhone 7 is expected to be muted as consumers wait for next year's iPhone 8.
Facebook's Growth Stays Hot
The social-networking leader is scheduled to report Q2 earnings after the market close Wednesday. The consensus estimate is for revenue of $6 billion, up 50% year over year, maintaining a streak of double-digit growth going back more than four years. The consensus on adjusted EPS is 81 cents, up 62%.
Analysts also will be looking for more information on growth drivers, such as Instagram, to maintain their strong numbers, though Facebook's costs on those efforts have also come under scrutiny.
Amazon Earnings To Pop
The e-commerce giant reports earnings after the close Thursday. The consensus is for EPS of $1.11, nearly six times year-earlier earnings of just 19 cents, on revenue of $29.6 billion, up 28%. Profitability has been an ongoing issue, as Amazon spends heavily on an increasingly diversified array of new endeavors.
Investors will also be looking for more data on Amazon Web Services -- its cloud computing platform that leads the market over Microsoft (MSFT), Alphabet and others -- as well as its investments in same-day delivery.
Amazon shares hit record highs recently and have been in profit-taking sell territory.
Alphabet's Traffic Costs In Focus
Alphabet reports Thursday after the market close, and Q2 revenue is expected to rise 17% to $20.75 billion, with EPS up 15% to $8.04. Google's rising TAC (traffic acquisition costs) have become a bigger topic since Q1 results, which missed expectations.
Analysts hope for management commentary on regulatory headwinds in Europe, and bulls hope for more signs of a new stock buyback. Another trend to watch: mobile search growth.
Alphabet stock has clawed back above its 50-day average despite bearish analysts raising alarms over a slowdown in digital advertising.
Stocks To Watch
About half of the names on the IBD 50 list of leading growth stocks are extended from buy points, as the health of the overall market continues to improve. While those shouldn't be considered for purchase, there are still plenty of stocks that are near buy points.
Apple chip supplier Broadcom (AVGO) is trading 3.9% below a 166.10 buy point from a cup base after climbing back above the 50-day line. Volume has been tracking lighter than average in July, so look for heavy volume if and when it breaks out.
Salesforce (CRM), the enterprise software firm, was able to reclaim its 50-day line earlier this month, and it is now trading 2.4% below a flat base buy point at 84.58.
Design software company Adobe (ADBE) is trading 2.6% below a flat base buy point of 100.66. The stock is looking for support at its 50-day line.
Gunmaker Smith & Wesson (SWHC) is trading 4% below a 29.85 buy point from a deep cup-with-handle base that had shares testing support at their 200-day line.
And Home Depot (HD) is trading just 1% below a cup-with-handle buy point of 137.92 after retaking its 50-day line earlier this month.
Oil Giants
The world's biggest energy companies are slated to report results, as the oil bust starts to recede. BP's (BP) EPS is seen falling 44% to 24 cents when it announces results Tuesday. Royal Dutch Shell's (RDSA) results will be out Wednesday, and analysts see EPS tumbling 62% to 47 cents. Exxon Mobil and Chevron will announce results Friday. Analysts expect Exxon's EPS to fall 36% to 64 cents, and revenue to be down 12% to $60.6 billion. Chevron's EPS is seen plunging nearly 64% to 32 cents, with revenue expected to fall 36% to $25.8 billion. ConocoPhillips (COP) will report Thursday. Analysts see it posting a loss of 59 cents per share and a 38% drop in revenue to $5.38 billion.
Shares of Chevron and Shell are in buy range, with Exxon heading towards profit-taking sell territory.
McDonald's Next Moves?
The Golden Arches reports Q2 results on Tuesday, amid concerns about slowing U.S. sales trends in the sector during the period. Analysts expect McDonald's EPS to rise 9.5% to $1.38, with sales falling 3.5% to $6.3 billion.
U.S. same-store sales have recovered in recent quarters since McDonald's began offering All Day Breakfast and revamped other parts of its menu. But sales will soon come up against tougher comparisons, and investors will look for any additional strategies to boost growth further.
Meanwhile, fast-casual chain Panera Bread (PNRA) reports on Wednesday and is seen growing EPS by 8% to $1.74 with sales up 3% to $696.5 million.
Fed Meeting, Economic Indicators
The central bank will hold its next policy meeting Tuesday and Wednesday, its first since the U.K. voted last month to leave the European Union. While economists don't expect a rate hike to be in play this time, the strong June jobs report prompted some speculation that an increase is possible at the Fed's September meeting.
On Friday, the U.S. government will release an initial estimate on Q2 GDP growth. Analysts expect an acceleration to 2.5% from just 1.1% in Q1. Other key reports include June new-home sales on Tuesday, June durable goods orders on Wednesday, and Q2 employment costs on Friday.
Europe's Banks
The European Banking Authority's stress-test results for big lenders in the EU are set to be released on Friday. The report comes amid growing worries about Europe's banks, especially Italian ones, as they face negative rates, high debt and, now, fallout from the Brexit vote.
Deutsche Bank (DB), whose U.S. segment had its capital plan rejected by the Federal Reserve in June, reports Q2 on Wednesday. Analysts expect EPS to plummet 55% to 46 cents, with revenue down 11.5% to $8.126 billion.
Edwards Lifesciences
The cardiac device maker reports Tuesday, and earnings are estimated to have grown 22% to 70 cents a share, a slight deceleration from the prior quarter's 25% gain, with sales up 18% to $724 million. On Monday, RBC analyst Glenn Novarro wrote that channel checks suggest sales of Sapien artificial heart valves could beat consensus, justifying Edwards Lifesciences (EW) stock's high valuation.
IBD'S TAKE: Edwards Lifesciences is among several IBD 50 stocks nearing buy range. To find out about other leaders setting up, click here.
Verizon, T-Mobile
Analysts have lowered expectations for Verizon Communications (VZ), which reports Q2 earnings early Tuesday. Verizon closed the sale of wireline assets in three states to Frontier Communications (FTR) and was hit by a strike by wireline workers in Q2, which will impact results. Analysts estimate that revenue will fall 4% to $30.96 billion, with EPS falling 11% to 92 cents. Analysts will look for an update on its digital media strategy and Go90 mobile video service amid a possible Yahoo (YHOO) acquisition.
T-Mobile US (TMUS) is scheduled to report Q2 results on Wednesday, and it is again expected to lead the big four U.S. carriers in revenue and postpaid subscriber growth. Analysts estimate revenue will grow 10% to $9.14 billion, with EPS falling 52% to 20 cents. T-Mobile has borrowed to fund bidding in a spectrum auction, hiking interest payments. Amid stiff competition, analysts are focusing on T-Mobile's free cash flow growth.
Boeing, Defense Contractors
Boeing will announce results Wednesday, with EPS seen jumping 39% to $2.25, but revenue is expected to fall 2.9% to $23.8 billion. The company has cut some workers amid market-share losses. Investors will also watch for any changes to production plans for its narrow-body and wide-body planes. Late Thursday, Boeing said it will book $2 billion in Q2 charges on the Dreamliner, 747 and military refueling tanking programs, impacting EPS by $3.23.
European rival Airbus (EADSY), which outperformed Boeing at the Farnborough Airshow earlier this month, will also issue results Wednesday.
Northrop Grumman (NOC) is expected to post a 7.7% drop in EPS to $2.53 when it announces results Wednesday. Revenue is seen rising 1.5% to $5.99 billion. General Dynamics (GD) rounds out the busy day, and analysts see its EPS climbing 1.8% but sales edging 0.1% lower. Raytheon (RTN) will report Thursday, and analysts are anticipating a 3% EPS increase to $1.70, but they see sales dipping 0.3% to $5.8 billion.
Top Drugmakers
Late Monday, Gilead Sciences (GILD) is expected to report a 4% EPS drop to $3.02 on a 5% sales decline to $7.8 billion, as its hepatitis C and aging HIV franchises slowly shrink, though its recently approved hep C pill Epclusa could help alleviate the damage.
On Thursday morning, Bristol-Myers Squibb (BMY) is seen reporting EPS rising 25% to 66 cents, with sales growth hitting 11% to $4.65 billion as newer drugs, such as Opdivo and Eliquis, outstrip the losses of patent protections on older blockbusters. Merck (MRK), reporting Friday morning, is expected to earn 91 cents a share on sales of $9.8 billion, both representing single-digit growth. Its blockbuster diabetes franchise is facing increasing competition, even as cancer drug Keytruda takes off.
Meanwhile, Alexion Pharmaceuticals (ALXN), Celgene (CELG) and AstraZeneca (AZN) will all report Thursday, and AbbVie (ABBV) reports Friday.
Under Armour
Under Armour (UA) is expected to earn a penny per share when it reports Q2 results on Tuesday, marking a 75% decline from the prior-year quarter. Revenue is seen growing 28% to $1 billion. Look for continued inventory updates from the Nike (NKE) rival in the wake of Sports Authority's bankruptcy proceedings, signs of growth abroad, and the build-up to the Olympics.
Caterpillar
The world's largest construction and mining equipment maker will release Q2 results early Tuesday. Analysts expect EPS to fall 24% to 96 cents on an 18% drop in sales to $10.06 billion. Caterpillar's (CAT) stock has improved along with the recovery in commodities. Its report will come days after Japan's Komatsu (KMTUY) agreed to buy mining gear giant Joy Global (JOY) in a $3.7 billion deal.
Mobileye
The provider of advanced driver-assistance technology and Tesla (TSLA) partner will report Q2 earnings before the market opens Tuesday. The consensus is for EPS of 15 cents, up 50%, on 46% revenue growth to $77.3 million. Analysts will be looking for more commentary on Mobileye's (MBLY) recent joint venture with Intel (INTC) and BMW (BMWYY) for the development of autonomous vehicles.
Baidu
China's internet search giant reports earnings Thursday, and analysts estimate that Baidu's (BIDU) EPS will fall 27% to $7.43, with revenue rising 10% to $18.31 billion, as Chinese regulators have taken a tougher stance on the web. The company lowered revenue guidance in June amid a government probe into health care advertising after the death of a university student. Beijing has also issued new guidelines for online ads.
Drinks, Snacks
Wall Street anticipates a fifth quarter of year-over-year declines for beverage giant Coca-Cola (KO) on Wednesday, with expectations of an 8% profit drop to 58 cents a share on a 4% dip in revenue to $11.65 billion in Q2. Dr Pepper Snapper (DPS), which also reports Wednesday, is seen growing EPS by 6% to $1.20 on a 2% sales gain to $1.68 billion.
Mondelez International (MDLZ) and Hershey (HSY) both report for the first time since Hershey snubbed the Oreo maker's $107-per-share buyout offer in late June. Analysts expect Mondelez's Q2 EPS to decline 15% to 40 cents, while revenue is seen falling 17% to $6.34 billion on Wednesday. When it discloses Q2 results Thursday, Hershey's EPS is seen flat at 78 cents on 2% revenue growth to $1.61 billion.
