Wall Street Breakfast: The Week Ahead

Economic reports in the week ahead

Investors will tackle huge wildcards on interest rates and Ukraine even as big earnings reports from companies like Walmart (NYSE:WMT), Nvidia (NASDAQ:NVDA) and ViacomCBS (NASDAQ: VIAC) tributary. Next week’s economic calendar contains updates on producer prices, retail sales, housing starts and existing home sales. Fedspeak will again be front and center with Chicago Federal Reserve Chairman Charles Evans, New York Federal Reserve Chairman John Williams, St. Louis Federal Reserve Chairman James Bullard, and Cleveland Federal Reserve Chair Loretta Mester, all of whom will deliver speeches. The FOMC minutes are also due out on February 16.

Earnings Spotlight: Monday, February 14 TreeHouse Foods (NYSE:THS), Advance Auto Parts (NYSE:AAP), Avis Budget (NASDAQ:CAR) and Arista Networks (NYSE:ANET).

Earnings Spotlight: Tuesday, February 15 Marriott International (NASDAQ: MAR), ViacomCBS (VIAC), Airbnb (NASDAQ: ABNB), Akamai Technologies Inc. (NASDAQ: AKAM), Wynn Resorts (NASDAQ: WYNN) and Roblox (NYSE: RBLX).

Earnings Spotlight: Wednesday, February 16 Kraft Heinz (NASDAQ: KHC), Analog Devices (NASDAQ: ADI), Shopify (NYSE: SHOP), Energy Transfer (NYSE: ET), Cisco (NASDAQ: CSCO), Nvidia (NVDA), Applied Materials (NASDAQ: AMAT), Matterport (NASDAQ: MTTR) and DoorDash (NYSE: DASH).

Earnings Spotlight: Thursday, February 17 Walmart (WMT), AutoNation (NYSE: AN), Roku (NASDAQ: ROKU), Shake Shack (NYSE: SHAK),

Earnings Spotlight: Friday, February 18 Deere (NYSE:DE).

IPO and SPAC monitoring: No IPO is expected to start trading next week. The analyst silence period ends for NSTS Bancorp (NASDAQ:NSTS) on February 14. IPO blackout periods expire on Crescent Capital (NASDAQ:CCAP) on February 14, Iris Energy (NASDAQ:IREN) on February 15, Newlake Capital Partners (OTCQX: NLCP), Sweetgreen Inc (NYSE:SG) and UserTesting Inc (NYSE:USER) on February 16 and CYNGN Inc (NASDAQ:CYN) on February 17. IPO blocks only cover certain blocks of shares. On the SPAC schedule, shareholder votes are set for the Roth CH Acquisition III Co. (NASDAQ:ROCR) deal to take QualTek public, the Astrea Acquisition Corp (NASDAQ:ASAX) deal to take on both HotelPlanner and Reservations.com public, as well as the agreement of Healthcare Capital Corp. (NASDAQ:HCCC) to make public Alpha Tau Medical.

Projected dividend increases: Companies planning to increase their quarterly dividend payouts include Foot Locker (NYSE:FL) at $0.38 from $0.30, Bruker Corporation (NASDAQ:BRKR) at $0.05 from $0.04, Kinsale Capital (NYSE: KNSL) at $0.13 from $0.11, Humana (NYSE: HUM) at $0.78 from $0.70, Louisiana-Pacific (NYSE: LPX) at $0.20 at instead of $0.18, Analog Devices (ADI) at $0.76 instead of $0.69 and Garmin (NYSE: GRMN) at $0.72 instead of $0.67.

Nvidia revenue overview: Nvidia (NVDA) will release its results on February 16 and is expected to discuss the impact of ending its pursuit of Arm Ltd acquisition during the conference call. Analysts believe the company’s data center growth will be one of the key takeaways from the report, with consensus calling for a 68% year-over-year gain to $3.2 billion. Bank of America believes supply remains the main constraint for Nvidia, but points to positive updates from AMD (NASDAQ:AMD), Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and its own trend checks from the Marketplace Portal. Steam/cloud game capex. Also look for comments from Nvidia management on a downturn in the crypto industry and more details on the software’s benefits with the Omniverse platform. The conference call will be closely watched to see if there are any hints of new mergers and acquisitions. Nvidia closed Friday about 30% below its 52-week high.

3M Spotlight: 3M Company (NYSE:MMM) is scheduled to hold a strategic update event on February 14. The company plans to discuss how its core strengths are leveraged across businesses to create value, as well as updates on strategic priorities, growth trends, capital allocation priorities and sustainability . . The company will also provide its financial outlook for 2022 and host a Q&A session. Deutsche Bank sees the event sparking interest in 3M shares with the likelihood of discussing a medium-term financial framework as well as its longer-term strategic priorities. Shares of 3M rose more than 10% in the six weeks following a similar event.

Walmart Revenue Snapshot Walmart (WMT) is set to report results on February 17, with analysts expecting the retail giant to generate $150 billion in revenue, 5% comparable sales growth and EPS of $1.48. Walmart should have posted a strong holiday quarter and reported market share gains in some key categories. The conference call could see executives highlight some of the new revenue streams for Walmart, delve into the implications of food inflation and discuss the impact of overshooting stimulus quarters.

Corporate events: Meta Platforms (NASDAQ:FB) will hold a general employee meeting on February 15 during which a major announcement is expected on how the company plans to bring its vision for the Metaverse to life. Intel (NASDAQ:INTC) will be closely watched with CEO Pat Gelsinger and other executives due to discuss the company’s business strategy on February 17. Nu Skin Enterprises (NYSE:NUS) to Provide Financial Advice at its Investor Day on Feb. 16 Mattel Inc (NASDAQ:MAT) will hold its Investor Day on Feb. 18. Check out some of the other events scheduled for next week that could lead to stock price moves in Seeking Alpha’s Catalyst Watch.

Leisure games: Citi explained how investors should view the entertainment sector with five important themes highlighted. Advice to investors is to consider sustainability of outside push, late reopening games/pent up demand, unprecedented pricing power, supply chain constraints/availability products and labor shortages/availability. Stocks that Citi says pass the test are top pick Polaris (NYSE:PII), Six Flags Entertainment (NYSE:SIX) as a turnaround story meets underrated reopening play, Royal Caribbean (NYSE: RCL) as the best operator in the hardest hit sector, Brunswick Corp (NYSE:BC) with its long-term transformation plan that stands out, Winnebago (NYSE:WGO) as the best player in the RV industry secular growth and Cedar Fair (NYSE:FUN) for its combination of pricing power, pent-up demand and improved balance sheet.

Information on mergers and acquisitions: The M&A calendar is marked by the closing of the Xilinx (NASDAQ:XLNX)-AMD (AMD) deal on February 14. Also on the agenda is the expiration of the takeover bid for the Oracle (NYSE:ORCL)-Cerner (NASDAQ:CERN) deal and a UK court hearing regarding the Ortho Clinical Diagnostics Holdings (NASDAQ :OCDX)-Quidel (NASDAQ:QDEL) on February 15. Monmouth Real Estate Investment (NYSE:MNR) shareholders vote on the Industrial Logistics Properties Trust (NASDAQ:ILPT) agreement on February 17.

Annual meetings: Companies with annual meetings scheduled for next week include Plexus Corp. (NASDAQ:PLXS), Ingles Markets (NASDAQ:IMKTA) and Model N (NYSE:MODN).

Mentions of Barron: The annual list of Best Sustainable Companies includes Intel (INTC), Clorox (NYSE:CLX), Ecolab (NYSE:ECL), Best Buy (NYSE:BBY) and PVH (NYSE:PVH) at the very top. This is a distinction that is becoming increasingly important in the context of ESG investing. The sports betting backdrop is dissected by the Super Bowl pre-post. The total addressable sports betting and iGaming market is now expected to reach $20.6 billion by 2025. CZR) has around 80% market share between them, Penn National Gaming (NASDAQ: PENN) via Barstool Sports and Bally’s (NYSE: BALY) also looking to break through. A dormant pick in the sector would be Boyd Gaming (NYSE:BYD), which owns a 5% stake in FanDuel that could be worth over $500 million.

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