3 things to watch on the stock market this week

Mmarkets fell last week, with both the Dow Jones Industrial Average (DJINDICES: ^ DJI) and the S&P 500 (SNPINDEX: ^ GSPC) lose about 2% of their value. The move brought indexes down to their all-time highs, but markets are still up significantly in 2021 as we enter the final two weeks of the year.

A few major earnings reports are expected for the coming trading week. Let’s take a closer look at three of the most anticipated announcements on this list, coming from Nike (NYSE: NKE), General Mills (NYSE: SIG), and Carnival cruise lines (NYSE: CCL).

Image source: Getty Images.

1. Nike’s Vacation Outlook

Nike releases its results for the second quarter of fiscal 2022 on Monday, in the midst of the most important selling period of the year for retail. This timing means the announcement will get a lot of Wall Street attention this week.

The shoe and clothing retailer disappointed investors in its last quarterly outing, as sales growth slowed to 12% in the fiscal first quarter, from 17% in the prior year. Investors expect more modest results this week as Nike tackles challenges in its supply chain. Sales are expected to increase within a single-digit percentage range to around $ 11.3 billion.

The key metric to watch will be Nike’s digital sales, which increased 25% in the last quarter. Gross profit margin is also expected to increase despite skyrocketing costs, but Nike will lag behind Lululemon Athletica on this point. Look for CEO John Donahoe and his team to highlight their growing cash returns, especially in stock buyback expenses. Still, given the timeline of this report, most Wall Street residents will be anxious to hear any estimates that Nike might be venturing into the key holiday shopping district.

2. General Mills profit margin

General Mills shares have made up for lost ground in recent weeks, but that rally will be put to the test when it releases second quarter fiscal 2022 results on Tuesday. last quarter sales growth after revenue fell into negative territory. We’ll learn this week if there’s been a lot of change in its two-year expansion rate of around 6%. This boost is faster than what General Mills shareholders saw before the pandemic, and management expects the faster rate of growth to continue.

Meanwhile, margins are increasing thanks to the demand for high-end snack products and pet foods. The gains here could accelerate the company’s earnings growth over the next several years, resulting in solid returns for shareholders. Those returns this week depend primarily on General Mills continuing to show high demand in its portfolio of snack, breakfast and pet food products.

3. Carnival reservations

Carnival’s shares have fallen sharply over the past six months, in part thanks to new fears related to COVID-19. That’s why investors will be watching its fourth quarter earnings report on Monday closely for signs of a halt in the pace of the cruise giant’s recovery.

Carnival was hoping to reach around 65% of cruise capacity by early 2022 after crossing 50% in October. We will learn this week whether fears surrounding the new omicron variant have had an impact on this promising outlook, either by reducing demand in the current quarter or by reducing cruise ship bookings through the mid-to-late season. the end of 2022.

Investors will also be watching Carnival’s interest expense given all the new debt it has incurred since the business shutdown for most of the past two years. The travel specialist could see a historic rebound after this crisis. But it will likely have to navigate a turbulent sales environment in late 2021 and early 2022 first.

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Demitri Kalogeropoulos owns Carnival and Nike. The Motley Fool owns and recommends Lululemon Athletica and Nike. The Motley Fool recommends carnival. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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