Investors should brace themselves for another trading week as the Omicron variant of the coronavirus continues to spread. At the same time, economists continue to try to determine what the aggregate impact of the latest wave of infections might be.
Stock market losses accelerated to Friday's close as investors preferred to sell their shares amid economic uncertainties ahead of the coming Christmas break as trading volume generally thins in the new Year.
The technology-heavy Index fell about 2.9% over the week, lagging the other major averages on a weekly basis. So far, it's still up 1.2% for December, but it's down nearly 1.9% for the week. The broad market benchmark has posted gains of approximately 23% for the year.
As this Omicron-induced uncertainty continues, investors will also receive the latest quarterly reports from some of the largest U.S. companies that can provide additional insight into consumer demand and the impact of supply chain disruptions.
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Below are three mega-cap stocks that we will focus on for the coming week: Nike
Nike (NYSE:) will report its results on Monday, December 20 after market close announce the second quarter of fiscal year 2022. On average, analysts expect the sportswear giant to earn $0.63 per share on revenue of $11.25 billion.
Nike lowered its sales forecast in September after experiencing production and shipping delays, limiting its efforts to meet strong demand for footwear and sportswear. Last quarter sales could decline due to plant closures in Vietnam due to the pandemic.
That would mean the full year will be in the middle of a single digit rather than a low double digit percentage that Nike targeted earlier this year. The Beaverton, Oregon footwear and accessories giant has been hit by COVID-19-related supply disruptions, making it difficult for the company to increase shipments after years of closures and lockdowns.
This potential The delay has weighed on Nike's powerful rally in 2021, which sent the stock to a record high above $177 last month. Shares, which closed at $161.36 Friday, are still up 14% this year.
2. Micron Technology
Chipmaker Micron Technology (NASDAQ:) will also report fiscal results for the first quarter of 2022 on Monday, following close. The storage chip maker has made an estimated $2.10 per share on revenue of $11.25 billion.
Micron issued a weak sales forecast for the past quarter in its earnings call, citing dwindling demand from PC manufacturers. At the time, the company's chief executive officer, Sanjay Mehrotra, told Bloomberg that stalling orders from PC makers is a short-lived issue.
Some of the company's customers are struggling to get other types of components, which means they can't build all the laptops and desktops ordered. That has led them to reduce the memory stock. The situation will reverse when sector deficits ease in the coming months, he said. Micron stocks closed at $83 Friday, up about 10% for the year, underperforming the benchmark (SOX), which rose more. than 30% over the same period.
3. General Mills
The maker of Cheerios cereals, Yoplait yogurts and Nature Valley granola bars, General Mills (NYSE:), will report revenue for the second time on Tuesday, December 21, before the market opens. reporting quarter of 2022 . Analysts expect $1.04 equity gain on $4.84 billion in revenue.
Shares of the Minneapolis-based staple consumer giant were up 14% this year through Friday, after rising nearly 10% in 2020, as packaged foods soared as people stocked their pantry during COVID-19 lockdowns .
The ongoing work-from-home environment will likely continue to increase demand for the company's packaged goods. However, GIS is trying to restructure its portfolio in an era where consumers are rapidly changing their eating habits and looking for fresher, greener and less sweet dishes. Bloomberg reported last month that the company is looking into selling a portfolio of brands, including Progresso soups and its Helper suite of one-skillet solutions, to raise money it could use to pursue acquisitions. The stock closed Friday at $67.65.
