Here’s your Investing Action plan, what you need to know heading into this week. Earnings season is finally quieting down, while the June Fed meeting is another week away. But investors will want to pay attention to some key economic data, as well as quarterly reports from software makers, retailers and more. Apple (AAPL) will unveil its mixed-reality headset.
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The stock market rally remains uneven, but there are opportunities and potential buys. So investors need to stay alert.
Stocks To Watch
Tesla (TSLA), DexCom (DXCM), Fluence Energy (FLNC), Wingstop (WING) and Extreme Networks (EXTR) are five stocks trading right around buy points. Tesla stock is clearing what’s either a cup or double-bottom base with the buy point just above the 200-day line. DXCM stock is flashing an early entry as it rebounds back above the 50-day line within a new flat base next to prior consolidations. FLNC stock is actionable from an early entry while the utility-scale battery storage play trades near an official buy point. WING stock is trying to rebound from the 10-week line in an emerging new consolidation. EXTR stock has broken out after offering early entries in the prior few days. A pause around current levels would be healthy.
Apple To Show Off Mixed-Reality Headset
Apple (AAPL) will will show off its latest hardware and software innovations in a keynote presentation Monday. It’ll detail the latest operating systems for the iPhone, iPad, Mac, Apple TV and Apple Watch. But the buzz is all about a mixed-reality headset, possibly called Reality Pro. It would be the first new hardware product since the Apple Watch debuted in 2015. The expected $3,000 price tag could deter buyers. Meta Platforms (META) recently unveiled its latest Meta Quest headset.
Economic Calendar
A quiet week for economic data starts off with the ISM’s services index, out Monday at 10 a.m. ET. With manufacturing in contraction, the service sector is keeping the U.S. economy on an upward path. Economists expect the May ISM services gauge to show a faster expansion, rising to 54.5 from 52. The IBD/TIPP Economic Optimism Index, which will be out Tuesday at 10 a.m., flashed increased recession risk in May, raising the stakes for the early June report. Consumer credit, out Wednesday at 3 p.m., will garner more attention than usual with spending slowing while pandemic-era savings are largely spent. Economists expect a more moderate $16.5-billion increase in April, after a $26.5-billion rise in March. Initial jobless claims, out Thursday at 8:30 a.m., have leveled off around 230,000, while continuing claims are holding around 1.8 million. But keep your eye on them. A clear move above these levels would confirm a deeper employment slowdown.
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Software Earnings
Sprinklr (CXM) reports Q1 earnings after the market close on June 5. Analysts expect the social media marketing specialist to swing to a 1-cent profit from a 5-cent loss a year earlier. Analysts project revenue growth of 16% to $169 million. The company recently launched Sprinklr AI+, a new AI offering that combined its own proprietary AI capabilities with the generative AI capabilities from startup OpenAI. DocuSign (DOCU) reports Q1 earnings after the market close on Thursday, June 8. Analysts project adjusted EPS up 45% to 55 cents, with revenue up 9% to $642 million. DocuSign’s software automates the filing of contracts over the internet and certifies electronic signatures. Workplace-management specialist Smartsheet (SMAR) reports Wednesday night with shares just below a buy point.
In Brief
Ciena (CIEN) reports fiscal Q2 earnings before the market open on June 6. Analysts expect the optical communications gear maker to report adjusted EPS of 61 cents, up 22% from a year earlier. Analysts predict 15% revenue growth to $1.09 billion. Ciena’s gear is built into telecom networks and hyperscale data centers.
Academy Sports & Outdoors (ASO) reports Q1 results early Tuesday, following mixed or weak results from other sporting goods retailers. Analysts expect ASO earnings to slide 3.5% to $1.67 per share while sales fall for the fifth quarter in a row, dipping 1.6% to $1.45 billion. ASO stock has been tumbling since late April.
Ollie’s Bargain Outlet (OLLI) earnings growth is expected to accelerate for the third quarter in a row for its Q1 report early Wednesday. FactSet analysts forecast adjusted Ollie’s earnings to bolt 135% higher to 47 cents per share while revenue climbs 10.8% to $451 million.
Thor Industries (THO) reports third-quarter financials early Thursday. Analysts predict earnings will plunge 83% to $1.09 a share with revenue tumbling 40% to $2.82 billion. A Covid-era boom in RVs and towables is long past.
Nio (NIO) will report first-quarter earnings on Friday, June 9. But investors will likely care about guidance, and whether the completely revised ES6 SUV can revive deliveries in June and beyond.
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