Here's your weekly Investing Action Plan: what you need to know as an investor for the coming week.
The earnings appetizers that markets sampled over the past few weeks will shift to rich, meaty entrees as heavyweights like Alphabet (GOOGL), Alibaba (BABA), Microsoft (MSFT), Intel (INTC), Boeing (BA), McDonald's (MCD), Starbucks (SBUX) and Chevron (CVX) report quarterly results. President Trump will also have his first full week in the White House, and an initial reading of Q4 GDP growth is due.
Stocks To Watch
Tech stocks Amazon.com (AMZN), Facebook (FB) and Adobe Systems (ADBE) are near buy points as the Nasdaq remains near all-time highs.
Amazon is trading 4.6% below an 847.31 cup-shaped base. It looks like the e-commerce giant is forming a handle, and if it forms a proper one, that could provide an earlier entry point.
Facebook could be looking to form a handle as well. For now, it's trading 4.9% below an entry at 133.60, 10 cents above its Oct. 25 high.
And Adobe is just 0.4% away from an entry at 111.19, about a month after its last quarterly report which showed accelerating bottom-line growth.
Alphabet
The Google parent faces tough comparisons with the prior-year quarter when it reports Q4 earnings late Thursday after launching new advertising products in late 2015. Analysts estimate EPS growth of 11.4% to $9.66 vs. 18% profit growth a year earlier, with revenue growing 18% to $25.17 billion, down from 28% in the prior year. One question heading into 2017, analysts say, concerns Google's core operating margins, which dipped in Q3 to 37.8%. Higher marketing costs tied to the launch of Pixel-branded smartphones could pressure margins in Q4, analyst say.
Alibaba
The Chinese e-commerce giant reports fiscal Q3 results before the market open Tuesday. The consensus looks for EPS growth of 21% in local currency to $1.13 a share, on 46% revenue growth to $7.3 billion. Alibaba has been pursuing international markets and believes 40% of revenue will come from outside China in the next 10 years. Hopes for making headway in the U.S. hit a hurdle last month, when the Office of the U.S. Trade Representative placed Alibaba on its "Notorious Markets" list for counterfeit and pirated items. The designation isn't expected to have a major impact on Alibaba's China operations.
Microsoft
The software leader's return to growth is expected to take a break when it reports fiscal Q2 results after the close Thursday. Analysts polled by Thomson Reuters expect Microsoft to earn 78 cents a share, unchanged from a year earlier, on sales of $25.28 billion, down 1.6%, in the December quarter. Earlier this month, Pacific Crest hiked its price target on Microsoft, saying it has "strong momentum" in its Surface-branded line of computers, its gaming business and its Azure cloud services.
McDonald's
The fast-food leader reports Q4 results before the opening bell on Monday, and analysts see EPS climbing 8% to $1.41, the slowest since a contraction a year and a half ago, as comparisons get tougher more than a year after its menu revamp and launch of All-Day Breakfast. McDonald's is continuing to tweak its menu as consumers weigh higher restaurant prices vs. cheaper groceries. The company also faces a strong dollar overseas but the prospect of looser regulations at home.
Starbucks
When the coffee behemoth reports late Thursday, analysts expect 13% EPS growth to 52 cents in fiscal Q1 on 9% sales growth to $5.85 billion. Howard Schultz, who is stepping down as CEO in April, recently called the U.S. "over-retailed" and is focusing on expanding its premium cafes. Starbucks has missed revenue forecasts in three of the last four quarters. It's also targeting an aggressive expansion plan in China.
Aerospace, Defense
Lockheed Martin (LMT) kicks off a busy week for the industry, with earnings on tap Tuesday. Analysts see Q4 EPS rising 6.6% to $3.06 and revenue rising 0.9% to $13.03 billion. Boeing follows on Wednesday and analysts expect EPS to jump 46.3% to $2.34 but revenue is seen falling 1.6% to $23.19 billion. On its commercial side, Boeing's Q4 deliveries edged up 1.6% to 185. Both Boeing and Lockheed may give more details about recent meetings with Trump to lower costs of the F-35 and the Air Force One programs respectively. Raytheon (RTN), Northrop Grumman (NOC) and Textron (TXT) are scheduled for Thursday. Analysts see Raytheon's EPS edging up 0.5% to $1.86 and revenue up 3.7% to $6.56 billion. Northrop's EPS is expected to be flat at $2.49, but revenue is seen rising 4.1% to $5.94 billion. General Dynamics (GD) rounds out the week with results out on Friday. Analysts see its EPS climbing 5% to $2.52 and revenue up 6.2% to $8.29 billion.
Big Oil
Chevron is the first oil major to report, kicking off earnings season on Friday. Its EPS is seen soaring 150% to 65 cents with revenue up 15.4% to $33.76 billion. The company could give spending guidance for 2017 and more information about its Permian Basin assets and how the OPEC production cut is affecting business.
Big Industry
Several big industrial companies will follow GE's prior-week report. United Technologies (UTX) reports Q4 results early Wednesday, and analysts see EPS up 14% to $1.56 with revenue essentially flat at $14.7 billion. Caterpillar (CAT) reports early Thursday. EPS is seen down 11% to 66 cents as revenue slides 10.8% to $9.84 billion. Honeywell (HON) reports early Friday, and Wall Street expects EPS up 10% to $1.74 with revenue up 1.7% to $10.15 billion. Freeport-McMoRan (FCX) reports Wednesday, 3M (MMM) is Tuesday, Eagle Materials (EXP) is Tuesday, Dupont (DD) is Tuesday and merger partner Dow Chemical (DOW) is Thursday, and Steel Dynamics (STLD) is Tuesday.
Chipmakers
The earnings season for chip companies gets underway in earnest on Tuesday when Texas Instruments (TXN) reports Q4 results after the close. Analysts are looking for TI to earn 82 cents a share excluding items, up 2.5%, on sales of $3.32 billion, up 4%. Qualcomm (QCOM) will follow with fiscal Q1 results on Wednesday. Analysts expect EPS of $1.18, up 22%, on sales of $6.12 billion, up 6%. Intel and Microsemi (MSCC) are set to report Thursday. Intel is expected to earn 74 cents a share ex items, unchanged, on sales of $15.75 billion, up 5.6%, in Q4. Microsemi is expected to earn 86 cents a share minus items, up 19%, on sales of $435 million, up 32%, in fiscal Q1.
EBay, PayPal
The auction site reports Q4 earnings late Wednesday, and analysts estimate 8% EPS growth to 54 cents, with revenue climbing 3.3% to $2.32 billion. Analysts say a strong dollar and currency exchange rates could weigh on eBay's (EBAY) results, despite strong online demand trends in the U.S. through the holiday season.
PayPal (PYPL), spun off from eBay in 2015, reports Q4 earnings late Thursday. Analysts estimate EPS growth of 16% to 42 cents, with revenue rising 16.5% to $2.98 billion. The mobile payment company recently announced partnerships Visa (V) and MasterCard (MA) as well as Facebook.
Telecoms
Verizon Communications (VZ) kicks off telecom earnings, reporting early Tuesday. Amid intensified wireless competition, analysts estimate Verizon's Q4 revenue will fall 6.3% to $32.1 billion, with EPS rising by a penny to 90 cents. AT&T's Q4 profit is expected to rise 4.7% to 66 cents with revenue flat at about $42.08 billion. AT&T (T) reports late Wednesday. Earnings call topics could include regulatory approval of the Time Warner (TWX) acquisition. Comcast (CMCSA) reports Q4 earnings early Thursday, with analysts modeling 10% EPS growth to 87 cents and revenue rising 7.5% to $20.68 billion. Analysts expect management's outlook for 2017 stock repurchases and its annual dividend hike.
Medical Stocks
Stryker (SYK) is likely to outgrow Johnson & Johnson (JNJ) and Intuitive Surgical (ISRG) when the trio reports Q4 earnings on Tuesday. The consensus for Johnson & Johnson models $18.26 billion in sales and $1.56 earnings per share ex items, up a respective 2.5% and 8%. Analysts see Stryker's EPS at $1.76 ex items on $3.15 billion in sales, growing 13% and 16%, respectively. Intuitive Surgical preannounced $757 million in Q4 sales on Jan. 11. But the consensus still models $739.7 million in sales, up 9.3%, and $5.99 EPS ex items, up 1.2%.
Drugmakers
Bristol-Myers Squibb (BMY) is expected to outpace fellow drugmaker Abbvie (ABBV) and biotech Biogen (BIIB) when it reports its Q4 metrics midmorning Thursday. Analysts expect Bristol-Myers' Q4 sales to grow 20% to $5.15 billion and EPS minus items to be up 76% at 67 cents. Shares sank Friday after saying it won't seek accelerated approval of its immunotherapy drug Opdivo for lung cancer.
Also Thursday, analysts model Biogen reporting $2.94 billion in sales, up 3.7%, and $4.98 EPS minus items, up 10.7%. AbbVie, which is slated to report early Friday, is expected to report $1.19 EPS ex items and $6.92 billion in sales, growing 5.3% and 8.7%, respectively.
Automakers
Ford (F) is slated to issue Q4 earnings early Thursday, with EPS projected to tumble 45% to 32 cents on a 7% revenue drop to $35.1 billion. The company said Friday it expects to record a $3 billion loss for 2016, due to pension and retirement costs. The Street expects EPS of 49 cents and revenue of nearly $31.96 billion from Fiat Chrysler Automobiles' (FCAU) Q4 report later that day. Fiat shares sank 10.3% on Jan. 12 on accusations from the EPA of emissions cheating.
Economic Indicators
The Commerce Department will issue its Q4 GDP report on Friday at 8:30, and the Atlanta Fed is projecting 2.8% annualized growth, down from Q3's pace of 3.5%. The December report for durable goods orders also comes out Friday, and a second reading of the University of Michigan consumer sentiment gauge for January comes later that day. On Tuesday, the National Association of Realtors reports existing-home sales for December, and on Thursday the Commerce Department reports December new home sales.