Earnings season is winding down... but it's not over. There are some really important, potentially market-moving reports coming out in the next few days.
Markets are still digesting the Fed "disappointment" and the extreme ups and rapid downs of the U.S.-China trade conflict, so that could lend these reports some outsized influence.
The lows made last Monday after the combined tariff war and currency war threats had spooked markets have held. There was a 7.3% drop from the intraday high on July 26 to the intraday low on Aug. 5. That's very important, as the market stabilized last week and even popped up on Thursday when traders were appeased by the possibility of further Fed rate cuts before the end of the year. Stocks are up sharply today (at one point, the Dow was up around 423 points) on news that the administration is going to delay some of the tariffs poised to hit U.S. holiday shoppers until December.
The key things that I'm watching include the 2,900 level on the S&P 500 and whether volatility remains at its high levels. The VIX was over 21 at one point this morning - that's a high reading.
With all that in mind, here's what's coming next...
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
These Reports Could Move Markets
Walmart Inc. (NYSE: WMT) announces on Thursday before the open. This kicks off the late-in-the-quarter retail sector earnings. A negative outlook from Walmart, especially tied to pricing impacts from tariff troubles, could doom the whole sector before the smaller players even get to have their say. Walmart has been impressive as it continues to grow its offering on the web and through services like delivery and curbside pickup, all leading the stock to new all-time highs last quarter. This reporting session will see the guidance going forward as a much bigger deal than results since Walmart's outlook will color the whole retail earnings landscape.
Alibaba Group Holding Ltd. (NYSE: BABA) will report on Thursday before the open as well, and the online giant from China's forward outlook will also weigh more heavily than actual numbers. Like Walmart, Alibaba's thought on tariff impacts going forward will have a huge impact on the stock itself, other major China stocks, and even on the American markets.
In 2008, American taxpayers were forced to bail out incompetent businessmen. Now, thanks to Public Law 110-289, it's time they pay it back.
Canopy Growth Corp. (NYSE: CGC) will release earnings results on Wednesday after the close. Cannabis stocks have in general declined in recent months, but Aphria had blowout numbers two weeks ago, and Cronos Group Inc. (NASDAQ: CRON) had mixed numbers with better revenue and weaker bottom line than earnings than expected. Canopy Growth, the big dog in the pot stock sector, is off over 30% since its April highs. The sector could use an upside surprise from Canopy Growth. Aphria Inc.'s (NYSE: APHA) results injected hope, but Canopy's numbers will likely move stocks prices for the whole sector.
New-school techie Nvidia Corp. (NASDAQ: NVDA) and old-school tech stalwart Cisco Systems Inc. (NASDAQ: CSCO) both report this week. Tech has been a mixed bag this earnings season, so the combination of the gaming graphics/ crypto mining/ AI company, Nvidia, and the "Internet's own plumber," Cisco, could swing sentiment one way or the other. One up and one down would be a "ho-hum" result for the market. Nvidia in particular has struggled to gain traction, so it will be under a microscope...
And that wraps up my five biggest earnings to watch this week. Be sure to check in for more updates as we near the end of earnings season.
New Information Pack Reveals Government-Initiated Income Stream
Most Americans don't know about the $72 billion being distributed across America right now. Which means they're missing out on $1,000 monthly average paydays. But there's good news: Money Morning has commissioned a brand-new information pack detailing the genius investment strategy behind these hefty paydays. Just click here to discover how to claim your free pack.
Follow Money Morning on Facebook and Twitter.
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.