Now that the trade war between the US and China is escalating and there is no solution in sight, the mood on the market has suddenly become bearish.
The last week was the worst for US equities in 2019, as investors rushed to reduce their risk after President Donald Trump threatened to slap more imports on Chinese imports from September 1. The euphoria also covered the first of the Federal Reserve in a decade evaporated quickly after investors saw no guarantees for further relaxation of the central bank.
These negative developments put investors in a difficult place because they weigh options in a market that has strongly recovered from any correction. There are several important earnings announcements planned for the following week that are worth watching out for. Here are our three choices:
Building on the success of its powerful content and future growth prospects, the Walt Disney Co. (NYSE 🙂 fiscal 2019 on Tuesday after the market report. On average, analysts expect the company to make a profit of $ 1.72 with sales of $ 21.46 billion.
The Disney stock has increased by almost 30% this year thanks to several recordings that break the recordings, the robust performance of its theme park activities and hopes that its new streaming service, Disney +, will be a huge success.
Trading at $ 141.62 from the end of Friday, Disney shares reached a record high of $ 147.15 on July 29.
Walt Disney Weekly Chart
The mass media and entertainment conglomerate plans to introduce its Disney + service later this year. It is expected that it will be a major challenge for Disney's biggest rival, Netflix (NASDAQ :).
mass media and entertainment conglomerate
With this cheerful Disney stock environment, the possibility of escalating costs and the company's guidance for the remainder of 2019 are the two most important details to focus on.
2. CVS Health
CVS Health (NYSE 🙂 will report second-quarter earnings Wednesday before the market opens. Analysts expect an average profit of $ 1.69 on sales of $ 62.65 billion.
A healthy earnings outlook for 2019 and a strong one, however, have so far not contributed to investor confidence in the stock, which will fall by 15% this year. It closed on Friday at $ 55.71 amid concerns about the changing American drug landscape and the strong competition from Walgreens (NASDAQ :).
CFS weekly ticket
In May, CFS raised its adjusted earnings per share forecast for this year to $ 6.75 – $ 6.90, higher than the $ 6.68 – $ 6.88 it had previously predicted. Next week's report will be important to see if the health giant is on schedule to deliver.
Concern remains about the integration costs of the $ 69 billion merger with Aetna (NYSE :), which was closed at the end of November, making the merged entity one of the largest health insurance and benefit companies in the industry. The merger is a way for CFS to strengthen its physical activities and at the same time stimulate the service side of the company. It is a response to Amazon's efforts (NASDAQ 🙂 to take over the healthcare sector.
Uber (NYSE 🙂 is another important name to keep an eye on, because & # 39; the world's largest provider of driving journeys announces its revenue for the second quarter on Thursday.
The company is likely to report a $ 2.1% loss on sales of $ 3.31 billion, amid investors' concerns about compromising profitability with increasing competition and costs.
Uber, which was made public in May, will have to survive in a difficult and competitive environment where consumers remain very price conscious, HSBC analysts Masha Kahn and Henning Cosman said in a note last month. The most important rival in North America, Lyft Inc. (NASDAQ :), prices are often 20-25% under Uber in New York and Daimler AG-backed Bolt is now doing the same in London, they wrote.
Uber Daily Chart
Uber shares have remained in a bearish spell since the IPO in May. They closed more than 2% on Friday.