Wall Street Breakfast: The Week Ahead

Wall Street Breakfast: The Conflict Goes Hypersonic

Economic reports in the week ahead

Some crucial reading on China will arrive next week for investors to digest when Nike Inc (NYSE:NKE) releases its results on March 21 and Nio Inc (NYSE:NIO) releases numbers on March 24. Both companies could disrupt their respective industry with the latest updates on supply and demand trends. The tech sector is to follow Nvidia’s (NASDAQ:NVDA) annual GTC event, while Adidas (OTCQX:ADDYY) hosts an innovation event with competition intensifying in the sportswear sector. The week ends with Moderna (NASDAQ:MRNA) hosting a vaccine update and an annual meeting at Huntman (NYSE:HUN) with activist investors pushing for a board change.

Earnings Spotlight: Monday, March 21 Nike (NKE) and Tencent Music Entertainment (NYSE:TME).

Earnings Spotlight: Tuesday, March 22 Carnival (NYSE: CCL), Adobe (NASDAQ: ADBE) and Poshmark (NASDAQ: POSH).

Earnings Spotlight: Wednesday, March 23 General Mills (NYSE: GIS), Winnebago (WGO) and EVgo (NASDAQ: EVGO).

Earnings Spotlight: Thursday, March 24 Darden (DRI) and Nio (NIO) restaurants.

Earnings Spotlight: Friday, March 25 JinkoSolar (NYSE: JKS).

IPO and SPAC monitoring: No IPO is expected in the coming week as the market remains rather inactive. There’s a flurry of IPO stock blackout expirations to follow, including Toast (NYSE:TOST) and aka Brands (NYSE:AKA) on March 21; Freshworks (NASDAQ:FRSH), Remitly Global (RELY), EngageSmart (NYSE:ESMT), Sterling Check (NASDAQ:STER), Sovos Brands (NASDAQ:SOVO) and Brilliant Earth Group (NASDAQ:BRLT) on March 22 and Clearwater Analytics (NYSE:CWAN) and Cue Health Inc (NASDAQ:HLTH) on March 23. In the SPAC world, shareholders of Tailwind Two Acquisition (NYSE:TWNT) will vote on the deal to take satellite maker Terran Orbital public. The deal includes a $50 million PIPE from investors including AE Industrial Partners, Beach Point Capital, Daniel Staton and Lockheed Martin (LMT).

Projected dividend increases: Companies planning to increase their quarterly dividend payouts include Worthington Industries (WOR) at $0.31 from $0.28, Oxford Industries (OXM) at $0.45 from $0.42 and Cousins Properties (NYSE: CUZ) at $0.32 instead of $0.31.

Nvidia event: Nvidia’s (NVDA) first GTC 2022 event takes place March 21-24. GTC will be watched closely across the tech industry, especially Nvidia CEO Jensen Huang’s keynote address. Key topics that will be covered include Accelerated Computing, Deep Learning, Data Science, Digital Twins, Networking, Quantum Computing and Computing in the Data Center, Cloud and periphery. The company also plans to talk about various technologies such as current and next-generation architecture-powered GPUs, as well as new software methodologies. The introduction of the company’s next-generation Hopper GH100 GPUs and new gaming products are seen as potential drivers for the stock price. Longer term, NVIDIA could highlight revenue-sharing opportunities with automakers as an enabler of scalability and OTA functionality, as well as outline the omniverse platform strategy and timeline for the Grace processor. Analysts believe NVDA’s presentations could raise investor expectations on the path to EPS near $10 per share.

Nike Earnings Snapshot: Nike (NKE) heads for its earnings report, with some analysts believing that many headwinds from supply chain, inflation and labor are already priced into the course of the ‘action. Wells Fargo expects a reiteration of guidance for mid-Fiscal 22 mid-single-digit revenue growth, while Credit Suisse believes Nike’s valuation against its peers may begin to reset after the FY23 figures will have been reduced. Morgan Stanley sees comments from Nike executives on supply and demand trends in China as the biggest wildcard in the report. Meanwhile, BTIG says it’s too early to be constructive on Nike as he believes the company continues to address supply chain issues and deal with demand constraints in China.

Corporate events: Adidas (OTCQX:ADDYY) will host an Innovation Day event in Germany. The presentation will take place just one day before Lululemon (LULU) officially enters the footwear industry with its first-ever running shoe on the market. Lululemon’s line of shoes will directly compete with Adidas, Nike (NKE) and New Balance. It is also an eventful week for investors and analysts. RealReal Inc (NASDAQ:REAL) and Vail Resorts Inc (NYSE:MTN) are holding events on March 22, while Petco Health and Wellness Company (WOOF), Nikola Inc (NASDAQ:NKLA) and Wex Inc Inc (NYSE:WEX) are all set to present on March 23. Moderna’s Virtual Vaccine Day (MRNA) for analysts and investors on March 24 will also be of great interest. Check out Seeking Alpha’s Catalyst watch for a full list of next week’s events that could impact stock prices.

Conference schedule: The conference program includes the Goldman Sachs Chemical Intensity Days Conference, the Keybanc Healthcare Virtual Conference, the Inaugural DA Davidson Virtual Conference on Electric Vehicles and the Energy Transition, the Wolfe Research Software Conference, the 22nd Annual Piper Sandler on energy and the Wolfe Research Software March Madness conference. .

Stock split: The 3-for-2 stock split for WR Berkley Corporation (WRB) goes into effect.

Annual meeting: Huntsman Corporation (HUN) will hold its annual meeting on March 25 with activist investor drama surrounding the company. Proxy advisor Institutional Shareholder Services recommended shareholders elect two of Starboard Value’s two nominees, while Glass Lewis backed the company’s slate.

Mentions of Barron: The publications are digging deep to find inflation-proof stocks that could benefit from the pass-through of higher prices to consumers. The food industry is experiencing strong demand trends and has an overall valuation level below three-year trends. Stocks that could benefit from higher food prices include General Mills (GIS), Hershey (HSY), Kellogg (K), Hostess Brands (TWNK), Bloomin’ Brands (BLMN), Brinker International (EAT), Starbucks ( SBUX), Agco (AGCO), Deere (DE), Albertsons (ACI), Kroger (KR) and Bunge (BG). Palo Alto Networks (PANW) also gets favorable writing this week as a savvy way to play the cybersecurity boom.

Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital