Earnings Week Ahead: Tech Giants and Retail Leaders in Focus

Wall Street Brunch: The Grandaddy Of Earnings Reports (undefined:NVDA)

Artificial Intelligence wrestles the spotlight from the Fed this week as Nvidia (NASDAQ:NVDA) reports earnings on Wednesday. Wedbush Securities analyst Dan Ives says that makes this week the most important of the year for the stock market. Analysts expect Nvidia to report revenue of $28.7 billion, operating profit of $18.8 billion, and EPS of $0.64. R&D expenses for the quarter are forecast to be $3.0 billion. Ives said that cloud numbers and AI data points from Microsoft (MSFT), Amazon (AMZN) and Google (GOOG) were strong during earnings season in an indication that massive enterprise AI demand is now underway. Nvidia has had a strong start to the year, with Q1 numbers blazing in ahead of market expectations. Revenue shot up 262% to $26 billion in Q1, due largely to accelerating demand for its AI platforms. According to Seeking Alpha analyst Nexus Research, who is bullish on the stock, the "delay in the shipping of Blackwell GPUs due to certain design flaws intensified the recent correction in the stock price. The fear is that such delays could create windows for rivals like AMD (AMD) and Intel (INTC) to capture some market share away from Nvidia." "Nonetheless, these fears have subdued somewhat amid demand for Nvidia's previous generation chips, the Hopper series, remaining strong" and on the earnings call "investors should expect CEO Jensen Huang and CFO Colette Kress to repeatedly emphasize the continuous strong demand for H100/H200s until Blackwell starts shipping," they said. Roundhill Financial CEO David Mazza says: "Considering so much of this earnings season to date has been focused on corporate spending on AI, traders will want to see how much the stock can keep benefiting from this as it remains one of the only cut and dry AI winners." Looking to the economy, it's a new macro landscape with Fed chief Jay Powell acknowledging in Jackson Hole that the FOMC is ready to start cutting rates and easing policy. The next big data point for the Fed will be the latest iteration of its favorite inflation gauge. The July core PCE arrives on Friday along with the personal income and spending numbers. On average, economists expect a 0.2% rise for the month. Economists at Pantheon Macro say the "benign" July PPI and CPI numbers point to another low core PCE print, forecasting a rise of 0.13%. They added that Powell's change in tone at Jackson Hole "from the June FOMC meeting, just 10 weeks ago, is startling." "At that meeting, the Fed dropped two of the three easings previously anticipated, raised its core inflation forecast, and said it expected unemployment to remain unchanged for the remainder of the year. We said at the time that these forecasts were too bearish, arguing that the Fed will soon have to backtrack from the new dotplot, because the labor market likely will soften materially over the summer, while core PCE likely will be better than policymakers expect." If core PCE comes in as expected, the three-month annual rate of core PCE would drop to 2.1% -- just a hair above the Fed target. T.S. Lombard says: "Even if the dual mandate has gained more prominence in recent weeks, the key tail risk for the central bank remains inflation." Still, expect the weekly jobless claims figures on Thursday to continue to get extra attention after Powell said the FOMC "will do everything we can to support a strong labor market." A spike in claims could boost the odds of a half-point rate cut in September. Right now the market is pricing in a 3 in 4 chance of a smaller, quarter-point. But the market is still pricing in 100 basis points by the end of the year with only three meetings to go. In the news this weekend, French authorities arrested Pavel Durov, the billionaire founder and chief executive of the online communications platform Telegram, on charges of spreading illicit material on the messaging app. Reports say Durov, a Russian-born French and Emirati entrepreneur, was traveling on his private jet from Azerbaijan when he was detained near Paris. Telegram has more than 900 million users worldwide and for years has been scrutinized by law enforcement agencies worldwide because terrorist groups, narcotics smugglers, arms dealers and extremist groups have used the app for encrypted communications. Intel (INTC) is working with Morgan Stanley and others as it seeks to defend itself from activist investors with shares down nearly 60% this year. No campaign from an activist has started, and it's not clear if activists have contacted the chipmaker's board, CNBC reported late Friday. Activists could target Intel as its stock has plunged nearly 40% over the past month. Second-quarter financial results and a third quarter outlook fell below consensus estimates. The company also announced plans to slash its workforce by 15% and suspended its dividend. And Edgar Bronfman Jr. wants Paramount Global (PARA) to partner with a technology company like Amazon.com (AMZN) or Apple (AAPL) to improve its streaming business if his offer is chosen as the winning bid over Skydance Media. Bloomberg says Bronfman believes that Paramount should have more specific skills for its streaming services, such as customer acquisition and ad sales. He submitted a $6 billion offer for National Amusements last week and is still working on getting the final signatures for his financing package, though he has all the investors in place. For income investors, Hyatt and Johnson & Johnson (JNJ) go ex-dividend on Tuesday, both with a payout date of Sept. 10. Yum Brands! (YUM) goes ex-dividend on Tuesday as well, paying out on Sept. 6. And eBay (EBAY) goes ex-dividend on Friday, with a payout date of Sept. 13. And in the Wall Street Research Corner, Piper Sandler analysts selected 20 bottom-fishing stock ideas, based on its technical grade rankings. Technical grade rankings that improve from the high teens tend to fly more under the radar with investors than those closer to 1. The stocks on the list have had technical grade rankings of 20 for at least the last trailing five weeks, but with this week's ranking improving to 19 or lower.

Wall Street Breakfast: The Week Ahead

The spotlight next week will be on Nvidia's (NVDA) earnings report, which has the potential to move markets. The chipmaking giant's highly anticipated report could have broad implications for the AI growth story. Wedbush Securities Dan Ives believes the Nvidia (NVDA) report makes the week the most important of the year for the stock market this year. The earnings calendar for the week ahead also includes key reports from Salesforce (CRM), CrowdStrike (CRWD), Best Buy (BBY), and Dollar General (DG). Also on the deck is the Bureau of Economic Analysis' PCE report, which will be the last one ahead of the Federal Reserve's next decision on interest rates on September 18. IPO watch: No new IPOs are expected to start trading in the U.S. The IPO lockup period expires for a block of shares of SolarMax Technology (NASDAQ:SMXT).

Earnings week ahead: NVIDIA, CrowdStrike, Salesforce, Lululemon and more (NASDAQ:NVDA)

Earnings season is winding down, but a few high-profile companies are still scheduled to report their quarterly results in the coming week. NVIDIA (NASDAQ:NVDA) will be the main highlight, with investors looking closely at the chipmaker for signs of the health of the AI boom. Below is a rundown of major quarterly updates anticipated in the week of August 26-30: Chinese e-commerce platform Pinduoduo (PDD) is set to release its Q2 results during pre-market trading on Monday. Analysts expect a rise of over 94% in both revenue and profit. Wall Street analysts and Seeking Alpha's Quant Rating system are highly bullish on the Shanghai-based tech giant, whose shares have surged about 90% over the past year, outperforming the broader market. Michael Wiggins De Oliveira, a SA Investing Group Leader, highlighted PDD's strong financials, including over $30 billion in net cash, aggressive growth investments and a potential 60% CAGR in 2024. The analyst also noted that the stock is undervalued with a 12x forward free cash flow, making it a compelling investment opportunity. Also reporting: BHP Group (BHP), PDD Holdings (PDD), Trip.com Group (TCOM), Daqo New Energy (DQ), Ubiquiti (UI), HEICO (HEI), Can-Fite BioPharma (CANF), and more. Nordstrom (JWN) is set to release its Q2 earnings report after the market closes on Tuesday. Analysts are anticipating a Y/Y decline in profits, reflecting the challenges faced by the retail industry. Despite the mixed analyst sentiment, Seeking Alpha's Quant Rating system remains bullish on Nordstrom, rating the stock as a Buy. This contrasts with the more cautious Hold rating from Wall Street analysts. SA author Young Investor Analytics points out that the growth of Nordstrom Rack could put pressure on margins. Additionally, the company's high debt levels and operational challenges remain areas of concern. Also reporting: Ambarella (AMBA), Box (BOX), JOYY (YY), SentinelOne (S), AgEagle Aerial Systems (UAVS), nCino (NCNO), PVH (PVH), Tupperware Brands (TUP), The Hain Celestial Group (HAIN), Gaotu Techedu (GOTU), Lilium N.V. (LILM), Alpine 4 Holdings (ALPP), Semtech (SMTC), SPI Energy (SPI), and more. Headlining the week's earnings docket, chipmaker NVIDIA (NVDA) is set to report its quarterly earnings after the market closes on Wednesday, with a focus on the Blackwell launch. Analysts are anticipating a significant increase in both revenue and earnings per share, with estimates suggesting growth of around 100%. Seeking Alpha's Quant Rating system suggests holding NVIDIA, noting concerns about its valuation. However, the stock has received a Strong Buy consensus among sell-side analysts. While the overall sentiment towards NVIDIA is positive, there are some differing perspectives among analysts. SA author Oliver Rodzianko believes that NVDA's valuation may undergo a contraction leading into fiscal year 2026, potentially causing unwarranted selling pressure and creating an undervaluation opportunity. As a result, Rodzianko maintains a short-term bearish stance on NVDA but anticipates a more bullish outlook in the future. Another SA author, The Asian Investor, takes a more unequivocally bullish stance on NVIDIA. The analyst highlights the upcoming earnings report and Blackwell launch as key factors supporting a Strong Buy recommendation. The Asian Investor anticipates that NVDA's EPS estimates may be revised upwards following the earnings release, and the Blackwell launch is expected to drive growth in fiscal year 2025. Despite the mixed analyst sentiment, NVIDIA has demonstrated impressive performance this year, with its stock price surging approximately 150%. San Francisco-based software giant Salesforce (CRM) is scheduled to announce its results after the market closes on Wednesday. Notably, Salesforce has been listed among Goldman Sachs' top 50 long positions for fundamentally driven hedge funds, with 15 funds holding it as one of their top 10 positions. Seeking Alpha's Quant Rating system classifies the stock as a Hold, while Wall Street analysts recommend a Buy. Investing Group Leader Danil Sereda argues that Salesforce appears undervalued by about a third, leading to a rating of Buy. Despite some challenges, Sereda believes the company's strategic acquisitions and advancements in AI technology could drive growth and surpass market expectations. Also reporting:CrowdStrike Holdings (CRWD), HP (HPQ), Okta (OKTA), Li Auto (LI), Veeva Systems (VEEV), Autodesk (ADSK), Affirm Holdings (AFRM), Chewy (CHWY), Kohl's Corporation (KSS), Nutanix (NTNX), NetApp (NTAP), Bath & Body Works (BBWI), Baozun (BZUN), Foot Locker (FL), Pure Storage (PSTG), The J. M. Smucker Company (SJM), and more. Athletic apparel maker Lululemon Athletica (LULU) is set to report its Q2 earnings after the closing bell on Thursday, with analysts forecasting 9% year-over-year growth in earnings. Goldman Sachs recently downgraded the stock to Neutral from Buy and cut its target price by nearly 40% to $286. The downgrade reflects concerns over "recent execution challenges, lackluster innovation launches, and increased promotional activity," suggesting a more balanced risk-reward outlook for the stock. Despite Goldman Sachs' cautious stance, Wall Street analysts remain generally bullish on Lululemon, maintaining a consensus Buy rating. However, Seeking Alpha's Quant Rating system classifies the stock as a Hold. SA author Jeffrey Adams notes that negative sentiment around Lululemon has lessened following a 50% drop in the stock price over the past year and a halving of its P/E multiple. He highlights the company's success in China, driven by secular trends and expansion plans, as a significant growth opportunity. Despite ongoing challenges with execution, Lululemon has managed to maintain its market share in the rapidly expanding global athleisure market, the analyst says. Also reporting: 3D Systems Corporation (DDD), Marvell Technology (MRVL), Dell Technologies (DELL), Best Buy (BBY), Stratasys (SSYS), MongoDB (MDB), Ulta Beauty (ULTA), Dollar General Corporation (DG), Elastic N.V. (ESTC), Victoria's Secret & Co. (VSCO), Nordic American Tankers Limited (NAT), Campbell Soup Company (CPB), American Eagle Outfitters (AEO), Ollie's Bargain Outlet Holdings (OLLI), Brown-Forman (BF.B), Build-A-Bear Workshop (BBW), Domo (DOMO), Burlington Stores (BURL), and more. The week concludes with a sparse array of earnings reports, including confirmed pre-market announcements on Friday from JinkoSolar Holding (JKS), Frontline (FRO) and UP Fintech Holding (TIGR).

What To Expect in the Markets This Week

Nvidia's (NVDA) earnings report on Wednesday highlights a busy week for corporate finances, with Salesforce (CRM), Dell (DELL), HP (HPQ) and CrowdStrike (CRWD) among the other tech firms set to report. Retailers like Dollar General (DG), Five Below (FIVE), Abercrombie & Fitch (ANF) and Ulta Beauty (ULTA) are also on tap. The Friday release of the Personal Consumption Expenditures (PCE) will show whether inflation continued to drop in July, potentially signaling the Federal Reserve's next move. Second-quarter Gross Domestic Product (GDP) is published Thursday, while investors will also be watching housing market data and consumer sentiment surveys. Market watchers will focus on earnings reports from several top technology, financial, and retail companies, with chipmaker Nvidia's report on Wednesday attracting the biggest attention. Nvidia's earnings come after its prior quarter report showed the company more than tripled its revenue and grew its net income more than six-fold, with both totals coming in above analyst estimates. The report comes as Goldman Sachs recently classified Nvidia as the "most important stock" of the year. Salesforce's report on Wednesday will show whether demand for its artificial intelligence (AI) products can continue to drive the company's revenue higher. Cybersecurity provider CrowdStrike will report for the first time since it issued a software update contributing to a global computer network outage. Investors will also get a look at how AI is affecting computer sales, with HP reporting on Wednesday and Dell issuing earnings on Thursday. Retail reports continue this week, with several discount chains issuing reports, including Dollar General, which has reported increasing same-store sales. At the same time, Five Below is also set to release quarterly financials. Ulta Beauty's report comes after filings showed that investor Warren Buffett's Berkshire Hathaway bought shares in the makeup seller. The Personal Consumption Expenditures (PCE) index is the Fed's preferred measure of price changes, and a further decline in the July reading could show that inflation is moving back toward the central bank's annual target of 2%. On Thursday, market watchers will get another look at second-quarter Gross Domestic Product (GDP) after the first reading showed accelerating growth of 2.8%.