Wall Street Breakfast: The Week Ahead

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Economic reports in the week ahead

Hang on. The S&P 500 index is down 8% from its all-time high and down 7% for the month of January in a market buzzing with volatility. Investors head into next week facing the reality that a poor stock market performance in January is usually a harbinger of a slower year. Over the past 50 years, a negative return for the S&P 500 in January was followed by an average return for the following 11 months of 6.7% compared to the average return for the rest of the year of 14, 0% when January recorded a gain. Significant earnings reports are expected from Alphabet (NASDAQ:GOOG), AbbVie (NYSE:ABBV), Amazon (NASDAQ:AMZN), Ford Motors (NYSE:F), Amazon (AMZN) and Starbucks (NASDAQ:SBUX) . The economic calendar includes January’s jobs report, which may come as a surprise due to the large number of hourly workers who were caught up in Omicron’s quarantines during the month. The unemployment rate should remain at 3.9%. On the energy market, the OPEC+ meeting will be closely followed with supply and demand factors in the spotlight. At the very end of the week, the Winter Olympics in Beijing begin.

Earnings Spotlight: Monday, January 31 NXP Semiconductors (NASDAQ: NXPI), Cirrus Logic (NASDAQ: CRUS) and Harmonic (NASDAQ: HLIT).

Earnings Spotlight: Tuesday, February 1 Exxon Mobil (NYSE: XOM), UBS (NYSE: UBS), UPS (NYSE: UPS), Sirius XM (NASDAQ: SIRI), Alphabet (GOOG), General Motors (NYSE: GM), Starbucks (SBUX), AMD ( NASDAQ: AMD), PayPal Holdings (NASDAQ: PYPL), Match Group (NASDAQ: MTCH) and Electronic Arts (NASDAQ: EA).

Earnings Spotlight: Wednesday, February 2 AmerisourceBergen (NYSE:ABC), Humana (NYSE:HUM), AbbVie (ABBV), Meta Platforms (NASDAQ:FB), T-Mobile US (NASDAQ:TMUS), Spotify (NYSE:SPOT), Facebook (FB), Qualcomm ( NASDAQ: QCOM), Spotify (SPOT) and Qualcomm (QCOM).

Earnings Spotlight: Thursday, February 3 Shell plc (NYSE: RDS.A), Cardinal Health (NYSE: CAH), Cigna (NYSE: CI), Honeywell (NASDAQ: HON), Penn National Gaming (NASDAQ: PENN), Amazon (AMZN), Ford Motor (F ), Pinterest (NYSE:PINS), Wynn Resorts (NASDAQ:WYNN), Fortinet (NASDAQ:FTNT), News Corp. (NASDAQ:NWSA), Unity Software (NYSE:U) and Activision Blizzard (NASDAQ:ATVI).

Earnings Spotlight: Friday, February 4 Bristol-Myers (NYSE: BMY), Eaton (NYSE: ETN) and CBOE Global Markets (BATS: CBOE).

IPO monitoring: No IPO is scheduled for next week as the market cools down a bit. Analyst search will open on Amylyx Pharmaceuticals (NASDAQ:AMLX), CinCor Pharma (NASDAQ:CINC), Hour Loop (NASDAQ:HOUR) and Vigil Neuroscience (NASDAQ:VIGL) on February 1. Therapeutics (NASDAQ: CMPX) and IDW Media Holdings (NYSE: IDW) on January 31; Weber (NYSE:WEBR), European Wax Center (NASDAQ:EWCZ) and Orange County (NASDAQ:OBT) on February 1; as well as Evotec (NASDAQ:EVO) and Adagio Therapeutics (NASDAQ:ADGI) on February 2.

Projected dividend increases: Companies expected to increase their quarterly dividend payouts include Old Dominion Freight Line (NASDAQ:ODFL) at $0.25 from $0.20, Cigna Corporation (CI) at $1.20 from $1.00, L3Harris Technologies ( NYSE:LHX) at $1.21 from $1.02, Exponent (NASDAQ:EXPO) at $0.23 from $0.20, New York Times (NYSE:NYT) at $0.08 from $0.07 , Air Products and Chemicals (NYSE:APD) at $1.68 from $1.50, Trane Technologies (NYSE:TT) at $0.66 from $0.59, Allegion (NYSE:ALLE) at $0.40 $0.36, Walker & Dunlop (NYSE:WD) at $0.55 from $0.50, Intercontinental (NYSE:ICE) at $0.36 from $0.33 and Corning (NYSE:GLW) at 0 $.26 from $0.24.

Alphabet revenue overview: Analysts expect Alphabet (GOOG) to report fourth-quarter revenue of $71.9 billion, a 36% jump from last year’s level. EPS is seen coming in at $27.19. Earnings day risks for Alphabet include the possibility of cautious guidance indicating a deceleration in first-quarter revenue or higher-than-expected capital spending on Cloud, Waymo and AR/VR projects. Bank of America says it’s constructive on Alphabet even though there are some guidance issues. The company says a “reasonable” base earnings trading multiple of 13X 2023 looks attractive amid the value bias in the market. The long term for cloud earnings growth is also highlighted.

Meta Platforms revenue overview: Analysts expect Meta Platforms (FB) to report Q4 revenue of $33.4 billion (+19% YoY) and EPS of $3.83 billion (-1.0 %). The company will split its results into Facebook Reality Labs and Family of Apps segments. Earnings day arrives with Meta stocks plummeting after vastly underperforming the S&P 500 index since the third quarter earnings release. Recent data from SensorTower indicates some pressure on Facebook users, but strong growth for Instagram. JPMorgan is broadly positive on FB and listed it among the top picks for 2022, even with revenue growth expected to slow against tough comparables. “We believe FB is making solid progress against Apple’s iOS changes as its tools evolve, strengthen and become more widely adopted. Our audits suggest that FB’s efforts to improve performance are gaining momentum, particularly regarding the extent to which FB should recoup 50%+ of the impact in 4Q,” the firm advises. JPMorgan also believes Oculus sales have been strong over the holiday season and expects the company to achieves its goal of more than ten million active virtual reality units.

MicroStrategy Event: The MicroStrategy (NASDAQ:MSTR) World 2022 event next week will focus on Bitcoin’s business use cases. MicroStrategy (MSTR) CEO Michael Saylor, Block (NYSE:SQ) Jack Dorsey and Silvergate Capital (NYSE:SI) CEO Alan Lane are some of the notable speakers. Cryptocurrencies experienced a crisis at the start of the year. YTD returns are negative for Bitcoin (BTC-USD) -20.7%, Ethereum (ETH-USD) -31.9%, Cardano (ADA-USD) -22.5%, XRP (XRP-USD) -27 .4%, Solana (SOL-USD) -45.9%, Terra (LUNA-USD) -42.9%, Avalanche (AVAX-USD) -38.6% and Polygon (MATIC-USD) -33, 4%.

Eyes on oil: The OPEC+ group responds on February 2 to broad expectations that a decision will be made to stick to a plan to increase production by 400,000 barrels per day in monthly increments. A larger increase is not expected as some OPEC members have struggled to increase production due to local capacity issues. On the demand side of the equation, China’s crude oil imports are expected to rise nearly 7% this year. Oil prices hit their highest levels in more than seven years on Friday as geopolitical unrest continues to bubble beneath the surface.

Corporate events: The shareholders of CITIC Capital Acquisition Corp. (NYSE:CCAC) will meet to vote on the SPAC deal to go public with lidar specialist Quanergy on Jan. 31. Ocuphire Pharma (NASDAQ:OCUP) will host its Investor R&D Day 2022 event on the same day. On February 2, LendingTree (NASDAQ:TREE) will host a virtual analyst and investor event with senior management scheduled to present the company’s outlook for fiscal 2022 and update the investment community on business performance and key strategic priorities. A10 Networks (NYSE:ATEN) will also host an Investor Day event to discuss long-term strategy. Gain Therapeutics (NASDAQ:GANX) will hold its R&D Day 2022 event on February 4. Also watch Boeing (NYSE:BA) this week with the company in talks with Qatar Airways for a proposed new freighter. A visit to the United States by the Emir of Qatar could trigger an announcement

Information on mergers and acquisitions: The go-live date for the Nuance Communications (NASDAQ:NUAN)-Microsoft (NASDAQ:MSFT) combination is Feb. 1 with high expectations the deadline will be extended. CyrusOne (NASDAQ:CONE) shareholders vote to acquire KKR on Feb. 2 and NeoPhotonics Corporation (NYSE:NPTN) shareholders vote to acquire Lumentum (NASDAQ:LITE). Playtech (OTC:PYTCF) will be watched closely with the company weighing a potential exit plan if shareholders vote against a deal to sell to Australian rival Aristocrat. Playtech board members are fearful that a bloc of Asian investors will vote to stop the sale.

Annual meetings: Notable annual general meetings are scheduled for Energizer (NYSE:ENR) on January 31, Aramark (NYSE:ARMK) on February 1, Cerence (NASDAQ:CRNC) on February 2 and Edgewell Personal Care Company (NYSE:EPC) on February 4. .

Mentions of Barron: Wesco International (NYSE:WCC) is featured favorably as the publication observes that demand for cloud computing, energy from renewable sources and electric vehicles, as well as more extreme weather events, mean that power infrastructure will require significant investments for the years to come. Wesco shares are rated to trade at just 11 times consensus 2022 earnings per share. Moderna (NASDAQ:MRNA) is also recommended as the company prepares to take on four big pharma in the vaccine market post-pandemic. Moderna is expected to have $27.4 billion in cash by the end of the year that it can use to strengthen itself and close a gap with rivals in infrastructure, people, relationships and maturity. organizational. A Barron’s roundtable of investment managers gathered to talk shop. Some of the stock picks mentioned were Dollar Tree Inc (NASDAQ:DLTR), Raytheon Technologies Inc (NYSE:RTX) and Credicorp Inc (NYSE:BAP) and Hercules Capital Inc (NYSE:HTGC).

Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital