Wall Street Breakfast: Wall Street Brunch

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Welcome to Wall Street Brunch, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. Podcast listener? Subscribe now to receive Wall Street Breakfast by 8:00 a.m. every trading day on Seeking Alpha, iTunes, Stitcher and Spotify (click the highlighted links).

An earnings season that ramps up in degree next week is likely to be the main driver of stocks — against a light calendar for economic data, little movement on trade/tariffs of late, and the market at large seemingly in a holding pattern ahead of an expected Fed rate cut (but by how much?) at month’s end. The week is heavy on tech results, with Facebook, Twitter, Snap, Alphabet and Amazon.com reporting, along with AT&T and Intel. Home reports come next week, with FHFA House Price Index and existing home sales on Tuesday, and new home sales on Wednesday. The durable goods orders report comes Thursday, and the first estimate for Q2 GDP arrives Friday, with consensus at 1.9%.

Notable earnings reports: Halliburton (NYSE:HAL), Hasbro (NASDAQ:HAS), and Discover Financial Services (NYSE:DFS) on July 22; Snap (NYSE:SNAP), Coca-Cola (NYSE:KO), Visa (NYSE:V), Lockheed Martin (NYSE:LMT), Chipotle Mexican Grill (NYSE:CMG) and PayPal (NASDAQ:PYPL) on July 23; Facebook (NASDAQ:FB), Tesla (NASDAQ:TSLA), AT&T (NYSE:T), Intel (NASDAQ:INTC), Ford Motor (NYSE:F), Boeing (NYSE:BA), Caterpillar (NYSE:CAT) and Celgene (NASDAQ:CELG) on July 24; Alphabet (GOOG, GOOGL), Amazon.com (NASDAQ:AMZN), Procter & Gamble (NYSE:PG), Starbucks (NASDAQ:SBUX), and Bristol-Myers Squibb (NYSE:BMY) on July 25; Twitter (NYSE:TWTR), AbbVie (NYSE:ABBV), McDonald’s (NYSE:MCD) and Phillips 66 (NYSE:PSX) on July 26. See Seeking Alpha’s Earnings Calendar for the complete list of earnings reporters.

IPO watch: The week in IPOs kicks off with a pricing of Fellazo (FLLCU) on July 23, followed by a busy Wednesday with pricing for Sunnova Energy (NYSE:NOVA), Health Catalyst (NASDAQ:HCAT), Livongo Health (NASDAQ:LVGO), Casle Biosciences (NASDAQ:CSTL) and Prosight Global (NYSE:PROS). Thursday pricings are due for the IPOs of Wanda Sports Group (NASDAQ:WSG) and Vista Oil & Gas (NYSE:VIST). Quiet period expirations come for Crowdstrike (NASDAQ:CRWD) and Mohawk Group (NASDAQ:MWK) on July 22, for Fiverr (NYSE:FVRR) on July 23, and Chewy (NYSE:CHWY) on July 24.

Projected dividend changes (quarterly): Bank of America (NYSE:BAC) to $0.18 from $0.15; BB&T (NYSE:BBT) to $0.45 from $0.405; Comerica (NYSE:CMA) to $0.69 from $0.67; Expedia (NASDAQ:EXPE) to $0.34 from $0.32; Hershey (NYSE:HSY) to $0.772 from $0.722; Kellogg (NYSE:K) to $0.58c from $0.56; Mondelez (NASDAQ:MDLZ) to $0.28 from $0.26; Northern Trust (NASDAQ:NTRS) to $0.70 from $0.60; Oneok (NYSE:OKE) to $0.89 from $0.865; Regions Financial (NYSE:RF) to $0.16c from $0.14; ResMed (NYSE:RMD) to $0.39 from $0.37; Republic Services (NYSE:RSG) to $0.40c from $0.375; Schwab (NYSE:SCHW) to $0.19 from $0.17; Synchrony Financial (NYSE:SYF) to $0.24 from $0.21; Wells Fargo (NYSE:WFC) to $0.51 from $0.45; Zions (NASDAQ:ZION) to $0.34 from $0.30.

Huawei ripples in D.C.: Huawei’s major U.S.-based suppliers will meet with Trump’s top economic aide Larry Kudlow on Monday, The Washington Post notes, in an effort to push the administration to allow sales to the beleaguered Chinese company. Qualcomm (NASDAQ:QCOM), Intel (INTC) and Google (GOOG, GOOGL are expected to talk with Kudlow and other officials, attempting to convince them that selling parts to Huawei won’t hurt U.S. national security. The companies also want to relax rules that prevent them from taking part alongside Huawei in global standards-setting bodies. And President Trump may make an appearance at the gathering.

Megabank monitoring: On July 24, the House Financial Services Committee convenes a hearing titled “The Next Megabank? Examining the Proposed Merger of SunTrust (NYSE:STI) and BB&T (BBT)” — and it’s an unusual step for the committee to focus on one deal like this. The panel will take a look at the biggest bank merger since the 2008 global financial crisis and history’s fourth-biggest, one that will create “Truist Financial,” the sixth-largest U.S. bank holding company (with a combined $442B in assets).

M&A tidbits: WestJet (OTC:WJAVF) is set to hold a shareholder vote on its acquisition by Onex (OTCPK:ONEXF) on July 23. American Midstream’s (NYSE:AMID) deal to be acquired by ArcLight Energy Partners is set to close on July 23 as well. Shareholders of Worldpay (NYSE:WP) and Fidelity National Information Services (NYSE:FIS) vote on their merger on July 24. A Hart-Scott-Rodino filing deadline arrives for Allergan (NYSE:AGN) and AbbVie (ABBV) on July 25. Zayo Group (NYSE:ZAYO) votes on its buyout by private-equity firms EQT and Digital Colony on July 26.

Annual meetings: Columbus McKinnon (NASDAQ:CMCO) and Stellus Capital Investment (NYSE:SCM) on July 22; Advanced Drainage Systems (NYSE:WMS), IRIDEX (NASDAQ:IRIX), Obalon Therapeutics (NASDAQ:OBLN), Twist Bioscience (NASDAQ:TWST) on July 23; AVX, CalAmp (NASDAQ:CAMP), Steel Connect (NASDAQ:STCN), RH, Adamis Pharmaceuticals (NASDAQ:ADMP) and Ultralife (NASDAQ:ULBI) on July 24; Rexnord (NYSE:RXN), HMG/Courtland Properties (NYSEMKT:HMG), Hilltop Holdings (NYSE:HTH), BioDelivery Sciences International (NASDAQ:BDSI), Exact Sciences (NASDAQ:EXAS), Haemonetics (NYSE:HAE), Bed Bath & Beyond (NASDAQ:BBBY) and Quanterix (NASDAQ:QTRX) on July 25; Oxford Square Capital (NASDAQ:OXSQ) and PetMed Express (NASDAQ:PETS) on July 26.

Special meetings: First Financial (NASDAQ:THFF) on July 23; Worldpay (WP) on July 24.

Investor days: RPM International (NYSE:RPM) on July 22.

International AIDS Society Conference: A number of companies are presenting at this gathering in Mexico City July 21-24, including Merck (NYSE:MRK), which will unveil phase 2B data on use of MK-8591 with doravirine in once-daily treatment of HIV; Johnson & Johnson (NYSE:JNJ), which has HIV vaccine data from its Phase 2 ASCENT trial; and GlaxoSmithKline (NYSE:GSK), offering late-stage TANGO data for Dovato, and GEMINI 1 and GEMINI 2 data.

Cannabis and banking: The thorny problem of what happens with the money amid a patchwork of marijuana laws comes before a Senate panel this week, with the chamber’s Banking Committee setting a Tuesday morning hearing on “Challenges for Cannabis and Banking: Outside Perspectives.” Industry stakeholders will take part. Big banks have shied away from a legislative process looking to facilitate an easier time for cannabis companies opening checking accounts or securing loans, considering a strict compliance backdrop and federal laws that still make many cannabis transactions illegal.

Box office: Disney’s (NYSE:DIS) The Lion King looks set to devour all competition at the box office this weekend, with no other major new entries opening wide, and a seemingly built-in audience made of the teeming masses who loved the 1994 animated musical classic. The remake grossed $23M in Thursday night previews (well above recent preview takes for Beauty and the Beast and Incredibles 2, and it’s expected to draw nearly $190M for the weekend, with previous top two Spider-Man: Far From Home (NYSE:SNE) and Toy Story 4 (DIS) far behind at $22M and $12.7M respectively.

Barron’s mentions: The cover takes on SoftBank (OTCPK:SFTBY), which has its investment fingers in a “dizzying array” of assets, and Barron’s argues that a sum-of-the-parts evaluation may price SoftBank shares as much as 50% below underlying asset value. It’s time to stop worrying about Amazon.com’s forays into package delivery and embrace FedEx (NYSE:FDX) as an e-commerce growth play, with control of 44% of market capacity for express shipments, it says. The publication recaps how Chipotle Mexican Grill (CMG) rebounded 73% this year to an all-time high this week — a call Barron’s says it missed. And Target (NYSE:TGT) is seeing operating earnings swing up again, a sign that the retail stock still has a ways to go to reach its potential.

Sources: CNBC, Nasdaq, EDGAR, Bloomberg


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