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Welcome to Wall Street Brunch, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. Podcast listener? Subscribe now to receive Wall Street Breakfast by 8:00 a.m. every trading day on Seeking Alpha, iTunes, Stitcher and Spotify (click the highlighted links).
It’s only a four-day trading week ahead, but there are plenty of catalysts or landmines depending upon your view. Economic reports of interest include updates on new home sales, mortgage applications, consumer confidence, trade and jobless claims (38M over the last eight weeks). On the geopolitical front, the rising tensions between Washington and Beijing could spill over into the markets again with Hong Kong in focus. Looking up at the stars, SpaceX (SPACE) will launch U.S. astronauts into space for the first orbital crew flight from U.S. soil since 2011.
Earnings spotlight: Costco (NASDAQ:COST) stands out as a potential earnings winner after Walmart (NYSE:WMT), Target (NYSE:TGT) and BJ’s Wholesale Club (NYSE:BJ) all impressed with their sales numbers. Also on the calendar are Bank of Nova Scotia (NYSE:BNS), Viasat (NASDAQ:VSAT), Booz Allen Hamilton (NYSE:BAH) and AutoZone (NYSE:AZO) on May 26; Vipshop (NYSE:VIPS), Royal Bank of Canada (NYSE:RY), Ralph Lauren (NYSE:RL), HP (NYSE:HPQ), NetApp (NASDAQ:NTAP) and Autodesk (NASDAQ:ADSK) on May 27; Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Nio (NYSE:NIO), Salesforce.com (NYSE:CRM), Dell (NYSE:DELL), Marvell Technologies (NASDAQ:MRVL) and GameStop (NYSE:GME) on May 28; Canopy Growth (NYSE:OTC:CGC) and Genesco (NYSE:GCO) on May 29.
Go deeper: See Seeking Alpha’s complete list of earnings reporters
IPO watch: The analyst quiet period expires on Lyra Therapeutics (NASDAQ:LYRA) on May 26. There are no new pricings scheduled, but IPOs expected around the corner include Chinese delivery platform Dada Nexus (DADA), fibrosis biotech Pliant Therapeutics (PLRX), immuno-oncology biotech Kiromic BioPharma (KRBP), grocery giant Albertsons (ACI), sales platform ZoomInfo (ZI) and micro-cap coffee packager NuZee (OTCQB:NUZE).
Go deeper: Catch up on all the latest IPO news.
M&A tidbits: Shareholders vote on the FGL Holdings (NYSE:FG)-Fidelity National Financial (NYSE:FNF) and TiVo (NASDAQ:TIVO)-Xperi (NASDAQ:XPER) deal on May 29. Other items of interest in the M&A world include KKR (NYSE:KKR) talking with US Foods (NYSE:USFD) management and LogMeIn (NASDAQ:LOGM) scrapping to gets its merger finalized.
Analyst/Investor meetings and business updates: Nissan (OTCPK:NSANY) plans to update its mid-term strategy sometime next week. Details on the strategic plan for the Nissan-Mitsubishi-Renault alliance are expected to be released as well. Sustainable Projects Group (OTCQB:SPGX) will hold a conference call on May 27 to discuss recent business developments, including its acquisition of the marketing & production rights to Soy-Yer Dough. Ingevity (NYSE:NGVT) is hosting a live webinar on May 28 to discuss its Engineered Polymers business. Perhaps the most interesting update of the week arrives on May 27 when STORE Capital (NYSE:STOR) holds a COVID-19 update call to discuss rent collections and answer questions.
Projected dividend changes (quarterly): Not too much action is expected next week with earnings season winding down and plenty of companies already pre-announcing dividend suspensions or payout freezes. Projected payout changes include NetApp to $0.50 from $0.48 and Lamar (NASDAQ:LAMR) to $0.65 from $1.00.
Lighting candles: SpaceX’s first crewed flight is scheduled for May 27. The SpaceX mission will send NASA astronauts Bob Behnken and Doug Hurley to the International Space Station aboard a Crew Dragon capsule as part of a $2.6B deal with NASA’s Commercial Crew Program to conduct six such flights. SpaceX is providing NASA astronauts just the fifth space system for liftoff in U.S. history to follow on the Mercury, Gemini, Apollo and shuttle programs. The mission will have a bit of showmanship with the two astronauts making their way to the launchpad in a Tesla (NASDAQ:TSLA) Model X. A successful mission could throw a spotlight back on the space sector and upstarts like Virgin Galactic (NYSE:SPCE) and Blue Origin (BORGN). There is also Boeing (NYSE:BA) to consider with the company still moving forward with its seven-astronaut Starliner capsule. For investors looking for a catch-all investment in the space sector, there is the Procure Space ETF (NASDAQ:UFO). Holdings include ORBCOMM (NASDAQ:ORBC), Sky Perfect (OTC:SKPJY), DISH Network (NASDAQ:DISH), Maxar Technologies (NYSE:MAXR), Garmin (NASDAQ:GRMN), Trimble (NASDAQ:TRMB) Viasat, Eutelsat Communications (OTCPK:EUTLF), Northrop Grumman (NYSE:NOC), Lockheed Martin (NYSE:LMT), Iridium Communications (NASDAQ:IRDM) and Virgin Galactic.
HBO Max: Another streaming service storms into the market on May 27 as HBO Max launches with six original series and 11 more arriving in the summer. On top of the large HBO library, the service will start with all ten seasons of Friends and the rights to a potential reunion show down the road. HBO Max also scored a deal with sister movie studio Warner Bros. and director Zack Snyder to release his cut of the film Justice League in 2021. HBO Max will cost $15 per month for new customers, while most people with an existing HBO subscription will get Max at no extra cost. AT&T’s (NYSE:T) entry into the streaming war is expected to add some incremental pressure on Netflix (NASDAQ:NFLX), Amazon Prime (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) over the next year as renewals come up.
ASCO: The highly-watched American Society of Clinical Oncology meeting pivots to a virtual format for the first time ever this year. While as many as 40K medical professionals and scientists typically attend the meeting in person every year, this year’s online event could draw even more interest. Some notable presentations include Amgen’s (NASDAQ:AMGN) pipeline update, data from AstraZeneca’s (NYSE:AZN) Phase 3 trial on Tagrisso, more Keytruda data from Merck (NYSE:MRK), a poster presentation from Atreca (NASDAQ:BCEL), an oral presentation by bluebird bio (NASDAQ:BLUE) on ide-cel, abstracts from Clovis Oncology (NASDAQ:CLVS) and multiple abstracts from Incyte (NASDAQ:INCY). Also watch for updates from Bristol-Myers Squibb (NYSE:BMY), bluebird bio, Johnson & Johnson (NYSE:JNJ), Seattle Genetics (NASDAQ:SGEN), Gilead Sciences (NASDAQ:GILD), AVEO Pharmaceuticals (NASDAQ:AVEO) and Celyad (NASDAQ:CYAD). The conference starts on May 29.
Restaurant service: Look for more reports next week on restaurant traffic in areas that are allowing dine-in service. The early numbers will be interesting, especially for chain operators like Dine Brands (NYSE:DIN), Brinker International (NYSE:EAT) and Darden Restaurants (NYSE:DRI) to see which concepts are pandemic survivors. In a recent survey by Cowen, 77% of respondents indicated that they would be going out less than in the past, with 50% indicating that they would avoid going out to bars and restaurants altogether (at least for a while). Cowen is also hosting a Restaurant & Food Technology Summit next week, which could include industry updates from Blaze Pizza (Private), Chick-fil-A (Private), delivery.com (Private), EVO Payments (NASDAQ:EVOP), FreshDirect (Private), HelloFresh (OTC:HLFFF), Shake Shack (NYSE:SHAK), TouchBistro and Zuul Kitchens (Private).
FDA watch: PDUFA dates are upcoming for Evofem Biosciences’ (NASDAQ:EVFM) application on Amphora and Regeneron Pharmaceuticals (NASDAQ:REGN)-Sanofi’s (NASDAQ:SNY) Dupixent. Data on Oncolytics Biotech’s (NASDAQ:OTC:ONCY) Pelareorep and Tecentriq is also due to be presented next week.
Volatility check: In an unofficial check of momentum movers on Robinhood.com, the biggest increases in positions over the last three days were for AstraZeneca (AZN), Delta Air Lines (NYSE:DAL), Aurora Cannabis (NYSE:OTC:ACB), Amazon and American Airlines (NASDAQ:AAL). The biggest drops in positions were for Luckin Coffee (NASDAQ:LK), Novavax (NASDAQ:NVAX), Sorrento Therapeutics (NASDAQ:SRNE), Gilead Sciences and Co-Diagnostics (NASDAQ:CODX). The latest Nasdaq report on short interest data is also due out next week. Stocks with high levels of short interest as a percentage of the total float at last check included Match.com (NASDAQ:MTCH), Bed Bath & Beyond (NASDAQ:BBBY), SmileDirectClub (NASDAQ:SDC), Waitr Holdings (NASDAQ:WTRH) and GameStop at the very top of the list with more than 100% of float shorted.
UBS conferences: The Bernstein 36th Annual Virtual Strategic Decisions Conference 2020 will feature Westlake Chemical (NYSE:WLK), Yum China (NYSE:YUMC), Air Products and Chemicals (NYSE:APD), Citizens Financial Group (NYSE:CFG), 3M Company (NYSE:MMM), Boston Scientific (NYSE:BSX), Estee Lauder (NYSE:EL), Northrop Grumman (NGC), Goldman Sachs (NYSE:GS), Regeneron Pharmaceuticals, Johnson & Johnson, Visa (NYSE:V), Micron (NASDAQ:MU), V, Blackstone Group (NYSE:BX), American Airlines, Sprouts Farmers Market (NASDAQ:SFM), Applied Material (NASDAQ:AMAT), Mosaic (NYSE:MOS), JPMorgan (NYSE:JPM), Canadian National Railway (NYSE:CNI), American Express (NYSE:AXP), TE Connectivity (NYSE:TEL), PayPal (NASDAQ:PYPL), KKR, Citigroup (NYSE:C), Sysco (NYSE:SYY), Uber (NYSE:UBER), Dow (NYSE:DOW), DuPont (NYSE:DD) and Home Depot (NYSE:HD).
Nevada: Nevada Governor Steve Sisolak set June 4 as the target date to reopen the gaming industry in the state. That timeline gives operators Caesars Entertainment (NASDAQ:CZR), MGM Resorts (NYSE:MGM), Boyd Gaming (NYSE:BYD), Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS), Full House Resorts (NASDAQ:FLL) and Red Rock Resorts (NASDAQ:RRR) next week to prepare. Casinos have been closed in the state since March 17.
Tesla store in Michigan: Tesla could open its first true standalone store in Michigan as early as next week, alongside a service center in the upscale community of Clarkston north of Detroit. The EV automaker is making the symbolic brick-and-mortar play in Michigan just as traditional auto dealers have shifted to more online interaction. Tesla and online seller Carvana (NYSE:CVNA) have both rallied during the stay-at-home period that began in the middle part of March.
Notable annual meetings: Managers of public pension funds in New York, California, Illinois and beyond plan to press Amazon’s directors on workplace safety at next week’s annual shareholder meeting. So far, Amazon executives have declined to provide official COVID-19 case counts, saying infection rates in company facilities tend to match or run slightly below those in surrounding communities. The tone should be a little more relaxed at Shopify’s (NYSE:SHOP) annual meeting with shares up 107% YTD, while Under Armour (NYSE:UAA) and MGM Resorts (MGM) hold their annual meetings amid a tough environment.
KeyBank Industrials & Basic Materials Conference: The KeyBank conference scheduled for Boston from May 26-28 is promised to provide insight and a comprehensive view of the landscape from C-level management teams across leading industrial and basic materials companies. Virtual presentations are on tap from Harsco (NYSE:HSC), Pool Corporation (NASDAQ:POOL), Quanta Services (NYSE:PWR), Gates Industrial (NYSE:GTES), Regal Beloit (NYSE:RBC), Rexnord (NYSE:RXN), Watts Water Technologies (NYSE:WTS), J.B. Hunt Transport (NASDAQ:JBHT) and Timken (NYSE:TKR).
Barron’s mentions: The publication notes that Q1 earnings results turned in last week confirmed a trend long in place among U.S. retailers of large, well-capitalized chains with big e-commerce units growing rapidly, while smaller companies are struggling to stay relevant amid the virus pandemic. Retail giants Walmart, Target, Home Depot and Lowe’s (NYSE:LOW) are all setting themselves up for the longer term with market share grabs, while Urban Outfitters (NASDAQ:URBN) and Kohl’s (NYSE:KSS) are seen getting weaker. Investors are pointed to look at the recent boom in the convertible bond market, with Columbia Convertible Securities (MUTF:PACIX), Franklin Convertible Securities (MUTF:FISCX), Calamos Convertible & High Income (NASDAQ:CHY), Ellsworth Growth & Income (NYSEMKT:ECF), SPDR Bloomberg Barclays Convertible Securities (NYSEARCA:CWB) and iShares Convertible Bond (BATS:ICVT) all seen as intriguing opportunities. The cover story covers the existential threat that small businesses face in the U.S. and the struggle for many to jump through administrative hurdles or get the attention of banks for PPP loans.
Sources: Bloomberg, Reuters, CNBC, Bloomberg, CNET.com, EDGAR
