The last full-week of January will be filled with earnings. With
the major financials having reported, the market will next shift
its focus to tech.
Investors should note that U.S. markets will be closed Monday
for the Martin Luther King, Jr. holiday.
Kicking off tech earnings, Google (NASDAQ:
) will report on Tuesday. Mobile rival Apple (NASDAQ:
) will follow on Wednesday, with handset maker Nokia (NYSE:
) and Microsoft (NASDAQ:
) on Thursday. The market will also see results from Netflix
) Wednesday, a popular stock among traders, and coffee giant
) on Thursday.
Last time Google reported earnings, shares dropped on investors'
disappointment with the search giant's results. However, since
then, shares have largely rebounded and are now trading back above
$700 per share.
Analysts at Canaccord have a Buy rating on the stock, and a $810
price target. They describe expectations for the coming quarter as
"reasonable," but note that there could be some volatility around
"There are more moving parts than normal in the model that could
add volatility around earnings," Canaccord notes.
Apple will follow Google and report on Wednesday. Investors will
be looking to see how well the company's flagship iPhone 5 sold. In
recent months, shares of Apple have been mostly trending lower --
falling nearly 30 percent since early October.
Several analysts have warned that demand for the iPhone 5 may be
worse than anticipated. So far, Apple hasn't commented on iPhone 5
sales yet, but investors will see how the smartphone is doing
Along with Apple, Netflix will report Wednesday. But unlike
Apple, Netflix has rallied strongly higher in the last three
months; up about 50 percent.
Eric Wold, Netflix analyst at B Riley & Co, has a Sell
rating on Netflix and a $45 price target. Wold doesn't think the
company is "going away anytime soon," but believes that lofty
content costs will weigh on Netflix's share price.
"This stock could have a big leg down after earnings," Wold told
Benzinga. "Next week, investors will see that they paid a lot for
Disney's content and their guidance for future subscribers will be
On Thursday, investors should get a good look at Windows Phone
8. Microsoft, the maker of the Windows Phone operating system, will
report along with its hardware partner Nokia. Microsoft's earnings
in particular should give some insight into Windows 8 adoption in
Starbucks' earnings will be released alongside Microsoft and
Nokia. Analysts at Morgan Stanley are bullish on the coffee giant,
with an Overweight rating and $57 price target. Shares closed at
$54.81 on Friday.
Morgan Stanley writes, "Starbucks continues to have one of the
best multi-year setups in restaurants from top line drivers to
margin benefits, driven by falling commodities."
Morgan Stanley thinks single-serve coffee could be a major
opportunity for Starbucks, which entered the market with its
Verismo machine last fall.
Economic will reports will be a bit light during the week. On
Tuesday, existing home sales in the U.S. will be released.
Economists are expecting a figure of 5.1 million. Wednesday will
bring Redbook retail sales and the House Price Index.
Internationally, investors will get some data on the Canadian
economy, including inflation data on Friday. The Bank of Canada
will make a decision on interest rates Wednesday. Canadian interest
rates are currently at 1 percent and economists don't expect a
Headlines from Washington should be limited. On Friday, reports
indicated that the Republican-controlled House of Representatives
is preparing to extend the debt ceiling for three-months. That
extension should calm concerns about the possibility of a U.S.
U.S. Markets Closed: MLK Day Canadian Wholesale Sales
Month-over-Month (Expected 1 percent), Mexican Unemployment Rate
(Prior 5.1 percent)
Earnings from: Freeport-McMoran (NYSE:
), Google (NASDAQ:
), Johnson & Johnson (NYSE:
), AMD (NYSE:
) US Existing Home Sales (Expected 5.1M), German ZEW Economic
Sentiment (Expected 12), Canadian Core Retail Sales
Month-over-Month (Prior 0.5 percent), Australian CPI (Expected 0.4
Earnings from: General Dynamics (NYSE:
), Netflix (NASDAQ:
), Western Digital (NASDAQ:
) Mexican Retail Sales Year-over-Year (Prior 3.5 percent), Canadian
Interest Rate Decision (Expected 1 percent), Chinese HSBC
Manufacturing PMI (Prior 51.50), South Korean GDP Year-over-Year
(Prior 1.5 percent), US Redbook Retail Sales (Prior -0.30 percent)
Earnings from: Southwest Airlines (NYSE:
), Lockheed Martin (NYSE:
), Raytheon (NYSE:
), E*Trade (NASDAQ:
), Starbucks (NASDAQ:
), Microsoft (NASDAQ:
), AT&T (NYSE:
) French Manufacturing PMI (Expected 45.1), German Manufacturing
PMI (Expected 46.8), Japanese Tokyo Core CPI Year-over-Year
(Expected -0.5 percent)
Earnings from: Oshkosh (NYSE:
), Honeywell (NYSE:
), Weyerhaeuser (NYSE:
) Canadian CPI Month-over-Month (Prior -0.2 percent), German Ifo
Business Climate Index (Expected 103)
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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