As bulls continue to lead markets forward, investor focus is likely to shift to macro indicators, such as interest rates and , as the Federal Reserve kicks off its two-day business this week.
Although the central bank is unlikely to adjust interest rates, it could provide some insight into how it sees the economic recovery progressing and whether the need to lift some monetary stimulus is indeed has arrived.
So far, equity investors see no threat to their favorable view of the market. It ended at a new high on Friday, with a gain of 0.4% for the week. With this macro view in mind, here are three stocks we'll be watching over the next week.
1. Oracle
Oracle Corporation (NYSE:) will release its fiscal year 2021 earnings report for the fourth quarter of 2021 on Tuesday, June 15, after market close. Analysts forecast $1.31 per share of earnings on $11.02 billion in revenue.
Shares of the software company are rising this year for the tech giant's cloud computing services after years of stagnant sales. The stock closed at $82.90 Friday, after gaining 28% this year, more than three times the return of the benchmark index.
Growth prospects are improving as the company turns to cloud computing services in an effort to accelerate revenue growth at the world's second largest software maker. Customer interest in the company's web-based applications has finally offset declining demand for its legacy tools.
2. Adobe Systems
Another stock that will come to the attention of investors in the coming week is Adobe Systems (NASDAQ:). The software manufacturer, whose product line includes Photoshop, will announce its second-quarter 2021 earnings on Thursday, June 17 after the shutdown. Wall Street expects $2.81 per share in earnings and $3.73 billion in revenue.
Adobes during the pandemic showed that the software maker's cloud-based creative tools are in high demand. Chief Executive Officer Shantanu Narayen has offered new creative software tools to customers to accelerate Adobe's revenue growth.
In March, the company raised its revenue forecast for fiscal year 2021 from $15.15 billion to $15.45 billion and said revenue in the major digital media segment would grow 22%, after previously experiencing growth of 19% had been predicted. Adjusted earnings will be approximately $11.85 per share, up from $11.20 previously forecast.
The company introduced a version of its popular app Illustrator for Apple's (NASDAQ:) iPad in October, as part of an effort to expand the footprint of its products with more devices being used. used by professionals and hobbyists.
Consumers of Document Cloud products, including Adobe Acrobat PDF and electronic signature software, have skyrocketed, with millions working from home. Adobe stock closed Friday at $541.26 after rising 8% this year.
3. Kroger
Supermarket giant, Kroger Company (NYSE:) will report its first quarter 2021 results on Thursday before the market opens. Analysts expect $0.98 per share earnings on revenue of $39.56 billion. Kroger's stock is up 22% this year on the grocer's rise and its participation in the US COVID-19 vaccination campaign. The company supplies millions of vaccines to people across the country, creating more repeat customers for its pharmacies and supermarket offerings. Kroger generated record revenue of $132.5 billion for the year ended January 30. Kroger is betting that its pharmacies and in-store clinics can keep its grocery stores central to consumers' lives, even as the coronavirus recedes. Next week's earnings could give investors some insight into the path they plan to take once the pandemic is contained.
"COVID has taught us that pharmacy is always very important and will be important as we move forward," Rodney McMullen, Kroger's chief executive, told WSJ.com in March.
