Bond market action is once again at the forefront as investors become more nervous about betting on growth stocks if interest rates continue to rise over the next week.
Revenues rose again Friday after US President Joseph Biden said all adults would be eligible for a vaccine by May 1, bringing the US economy closer to full reopening. It hit a high of 1,642% – the highest level in more than a year before falling just a little lower.
That move also helped deliver a 4% profit for the week. The 30-component mega-cap index ended at a record high of 32,778 on Friday as investors favored value and cyclical stocks over growth stocks whose stretched valuations have become a cause for concern as interest rates soar.
also up 3% in the past week, but it's down 5.5% in the past month. As these volatile market conditions prevail, here are three megacap stocks that we are monitoring closely – two of which will be announcing their final earnings in the coming days:
1. Nike
Nike (NYSE 🙂 will announce its earnings for the third quarter of fiscal year 2021 on Thursday, March 18, after the market closes. On average, analysts expect the sportswear giant to report earnings per share on revenue of $ 11.03 billion at $ 0.758.
After a strong rally after the plunge of COVID-19 last year, Nike's stock hasn't moved much this year. Investors await further signs of a recovery in the company's sales as economies reopen in the company's two main markets: the US and China.
If Nike is able to report a strong rebound in sales, the stock could break its current trading range and hit new highs. Nike closed at $ 140.45 on Friday, slightly below the record of $ 147.95 set this year.
Nike's strong brand, along with its digital strategy, has positioned the athletic footwear manufacturer of Air Jordan sneakers, among other sportswear, for long-term growth. The Beaverton, Oregon-based company returned with a profit, posting much better results than analysts had predicted, despite widespread global lockdowns and the cancellation of sporting events.
2. FedEx
The largest parcel delivery service in the world, FedEx (NYSE :), is another mega cap company that will report its fiscal 2021 third quarter figures after the market Thursday is closed. On average, analysts expect earnings per share of $ 3.35 on revenue of $ 19.93 billion.
FedEx revenues, which come nearly a month ahead of most US companies, are closely monitored. The delivery business is considered a measure of the health of the global economy. The latest releases from the Memphis, Tennessee-based company show that the company is booming as it capitalizes on accelerating, pandemic demand.
But the stock has lost momentum since it hit an all-time high in December, after the company said the cost of shipping parcels to consumers is on the rise, on its flagship on the ground. FedEx shares are up about 4% this year, closing at $ 270.29 on Friday after rising to $ 305.66 in December 2020.
Investors were bullish on courier companies during the pandemic that forced consumers to spend more time online. shop. However, any sign that ecommerce deliveries further erode profitability could hurt their share.
3. Tesla
Tesla (NASDAQ 🙂 stock may show some activity Monday after the electric carmaker said over the weekend that it plans to make adjustments to the production processes at its Chinese factory to increase production capacity in the US. The world's largest car market.
The changes focus on spare parts production at Tesla's Shanghai plant, including plans to improve the power system, chassis and electric motor, the company said in a statement posted to a Shanghai government website. . According to Bloomberg, the statement read:
"The project aims to meet the growth in demand following the expansion of production capacity at the plant, and it begins with improvements in the manufacturing process."
China is Tesla's second largest market and a key factor in its expansion plans. Passenger car retail sales in China more than quadrupled last month to 1.18 million vehicles compared to the previous year. Tesla shares closed at $ 693.73 on Friday, after gaining 23% during the week.
