Markets remain hostage to trade uncertainty between the US and China, with little hope for a solution soon. The decrease fell by 1.1% over the last five trading days when the benchmark lowered its profit in the third quarter to around half a percent.
Shares were also put under pressure by the launch of the recently opened investigation into the deposition of President Donald Trump's US House of Representatives, a political development that will add a new layer of uncertainty to trading conditions.
Apart from these macroeconomic events, we are looking at three large cap stocks that could see some action this week, the result of company-specific developments in the coming days:
Snack and drink giant PepsiCo (NASDAQ 🙂 makes the third quarter profit on Thursday, October 3, before the market opens. Analysts expect earnings per share of $ 1.5 per share of $ 16.93 billion.
PEP Weekly TTM
The forthcoming quarterly report could provide additional evidence that Pepsi's earnings momentum is supported by a strong rebound in demand and the success of the company's product mix with popular brands such as Frito-Lay, Tostitos and Ruffles chips and Mountain Dew & # 39; s energy fuel carbonated beverage line, a favorite among gamers. In the previous quarter, the demand for the softdring giant's caffeine-stimulated drink aimed at video gamers was so strong that the company was unable to keep its resealable cap in stock.
A positive profit surprise would help Pepsi stocks outperform competitors, as the stock continues its strong upward movement, which began in the past year. Shares closed at $ 135.60 Friday, more than 20% so far this year.
2. Costco Wholesale (NASDAQ 🙂
Retail will be re-examined when Costco Wholesale (NASDAQ 🙂 reports its results for the fourth quarter of the 2019 financial year reports on Thursday 3 October after the closure. Analysts expect $ 2.54 per share in earnings on sales of $ 47.48 billion.
COST Weekly TTM
Unlike the weak results of some top retailers during their recently completed quarters, it is likely that Costco (NASDAQ 🙂 a. The company said last month that sales in the same store were strong in August and exceeded analyst estimates.
The company's future guidelines will be more important for investors, at a time when cost pressures are increasing due to tariff increases between the US and China that have squeezed retailers importing products from China.
There is also growing evidence from recent economic reports that the US economy is. If that delay persists, this may damage consumer sentiment as the year progresses.
However, until now, Costco shares (NASDAQ 🙂 have remained a favorite with investors. The stock closed at $ 285.95 on Friday, around 40% this year.
3. Alibaba (NYSE 🙂
It appears that trade between the US and China will continue to weigh on the Chinese tech stocks listed on the, in the aftermath of, reports that the White House is considering ways of investing American investments in China. limit.
According to a CNBC report, the White House could include a block for all US financial investments in China with the aim of protecting US investors. At the moment, no decisions have been made, and it is far from complete, sources told the network.
BABA Weekly TTM
But the report was sufficient to cause a sale in Chinese stocks under the leadership of Alibaba Group ownership (NYSE 🙂 that fell more than 5% on Friday. In our opinion, this weakness could expand in the coming weeks, unless there is a positive outcome for trade negotiations.
The report appears to be a pressure tactic of US officials before the crucial October trade negotiations with China. The resulting stock weakness can offer some of our favorite stocks, including Alibaba (NYSE :). After closing at $ 165.98 on Friday, the shares are 19% higher for the year.