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The calendar turns to September next week with the stock market reeling from a more hawkish Federal Reserve than some expected. Will the selling pressure continue as higher interest rates are priced in? Already in the mix, September has traditionally been the worst month for the S&P 500, with an average loss since 1945 of 0.6%. Economic reports expected during the week include updates on consumer confidence, construction spending and vehicle sales, all of which come before August’s big jobs report drops to the very last. weekend. The US jobs report for August is expected to show 300,000 jobs added for the month and an unemployment rate stable at 3.5%. On the company timeline, revenue reports from Lululemon (LULU), HP Inc. (NYSE: HPQ) and Broadcom (NASDAQ: AVGO) are the headliners, while a Bed Bath & Beyond strategic update (NASDAQ:BBBY) also has a good chance of influencing the stock price. Another wild card to watch is developments in European energy markets when Russia’s Gazprom halts gas flows through the Nord Stream pipeline for three days of maintenance. European nations have accused Russia of using the gas as a weapon to fight Western sanctions against Ukraine.
Earnings Spotlight: Monday, August 29 Pinduoduo (PDD) and Heico (NYSE: HEI).
Earnings Spotlight: Tuesday, August 30 – Bank of Montreal (BMO), Baidu (BIDU), Crowdstrike (CRWD)), HP (HPQ), Hewlett-Packard Enterprise Company (HPQ), Ambarella (AMBA), Best Buy (NYSE: BBY) and Chewy (NYSE: CHWY).
Earnings Spotlight: Wednesday, August 31 – Brown-Forman (BF.A), MongoDB (MDB), Okta (NASDAQ: OKTA) and Five Under (FIVE).
Earnings Spotlight: Thursday, September 1 – Broadcom (AVGO), PagerDuty (NYSE:PD), Lululemon (LULU) and Campbell Soup (CPB).
IPO monitoring: hemp (NASDAQ: HPCO) is expected to begin commercial operations on August 30. The company sells smokable hemp products to consumers in the United States. Hempacco said it plans to offer 3 million shares at a price between $4 and $6 per share, which would yield $15 million if the price is midpoint.
To the Moon: NASA plans to return to the moon next week for a 42-day test flight as a new era begins in space exploration. The space agency’s uncrewed Artemis I could launch during a two-hour launch window scheduled for August 29 from 8:33 a.m. ET to 10:33 a.m. There are backup launch windows on 2 and September 5. A key mission objective is to ensure the capsule’s heat shield can protect returning astronauts from the intense heat of re-entry during a future flight. The ultimate goal of the Artemis program is to send missions beyond the moon into deep space. What follows Artemis I? NASA is targeting a crewed SLS-Orion mission around the moon with Artemis II as early as 2024, followed a year or more later by an Artemis III trip to the lunar surface, with SpaceX (SPACE) providing the lift. There are a lot of actions that could be affected by how the moonshots play out. Lockheed Martin (New York Stock Exchange: LMT) is the prime contractor for the Orion spacecraft, while NASA prime contractors for the rocket launch system include Aerojet Rocketdyne (NYSE: AJRD), Boeing (NYSE: BA) and Northrop Grumman (NOC). Critical solar collector components and Redwire’s advanced optical imaging technologies (RDW) will be launched on NASA’s Orion spacecraft as part of the space agency’s Artemis I mission. Aeva Technologies (NYSE: AEVA) is also paired with a mobile LiDAR-based terrain mapping and navigation system designed to support the next generation of lunar and planetary exploration, while KULR Technology Group (NYSE: KULR) has a battery safety contract with NASA to test its lithium-ion cells entering batteries designed for the Artemis program. The Collins Aerospace & Axiom Space (OTCQB:AXIM) unit from Raytheon Technologies (RTX) has been selected to advance spacewalking capabilities in low Earth orbit and on the Moon. Lunar vehicles need tires, which Goodyear Tire & Rubber (GT) is responsible for developing. Rocket Lab (RKLB) has been used to test new orbits around the moon, while Canoo Vehicles (GOEV) are expected to be used to transport astronauts to the launch pad. Space Sidus (NASDAQ: SIDU) is a contractor for extravehicular activity services. On the communications side, Lockheed Martin (LMT), Amazon (AMZN), and Cisco (CSCO) have partnered to develop new voice, AI, and tablet-based video technologies for use around the moon and back. The list of companies with an interest in the moon is expected to grow rapidly after science experiments begin on the surface.
Lululemon revenue overview: Lululemon (LULU) will report earnings on September 1, with analysts expecting revenue of $1.77 billion and EPS of $1.85 to be released. UBS believes the Lululemon impression will bolster market confidence in the long-term outlook and its ability to gain market share in a weak macroeconomic environment. “We believe the market is increasingly looking for Softlines stocks that are less cyclical, but are struggling to find them as Off-Price stocks haven’t performed as defensively as expected,” the team warned. of analysts. The bullish thesis is that a strong quarter is likely to gradually convince investors to buy LULU at a high multiple, as they will believe that increased belief in LULU’s ability to generate growth justifies paying a high price. CFRA warned that LULU is using air freight to receive most of its inventory, which is expected to remain high through at least the second half of FY23. One wild card with Lululemon identified by CFRA is how quickly the acquisition of Mirror can pay dividends.
Eyes on the movies: The theater stocks could once again create buzz next week with AMC Entertainment (New York Stock Exchange: AMC) and his new favorite APE negotiation class (APE) both trending again in social media circles. Recent industry disruption includes Cineworld’s (OTCPK:CNNWF) filing for Chapter 11 bankruptcy protection and MoviePass’s return from the dead with a beta launch slated for Labor Day. MoviePass parent Helios and Matheson ceased operations after filing for Chapter 7 bankruptcy in 2020. The US box office generated $5.18 billion this year through August 26. That total is up 162% from a year ago and 186% from 2020, but still about 32% below box office pace in 2019.
Corporate events: VMWare (VMW) will host a three-day multi-cloud global event called VMware Explore 2022 earlier this week. The event will feature a variety of sessions covering key technology themes and industries, as well as keynote addresses from senior executives. AMD (AMD) will hold a live premiere on August 29 to unveil next-generation AMD PC products. CEO Dr. Lisa Su and other senior AMD leaders will present details on the latest “Zen 4” architecture that powers the upcoming AMD Ryzen processors and the all-new AM5 platform built around the latest technologies, including DDR5 and PCIe5. Allstate Corporation (ALL) will host a conference call on August 31 on its investment strategy and operational topics. On September 1, RemeGenix (RGX) will again report data from its first human study of RGX-111 for mucopolysaccharidosis. RemeGenix shares have been volatile in the past following the RGX-111 updates. Learn about other events that could lead to stock price movements in Seeking Alpha’s Catalyst Watch.
Notable conferences: The conference program is titled Jefferies 2022 Semiconductor Conference with appearances from Himax Technologies (HIMX), AMD (AMD) and Adtran Holdings (ADTN). Other conferences of note include Credit Suisse’s 10th Chinese Internet Conference and Deutsche Bank’s Technology Conference.
Mentions of Barron: This week’s cover story looks at how freshwater scarcity is fast becoming a global economic threat that could disrupt business and undermine growth. Drought, climate change, population growth and a focus on environmental, social and corporate governance investments have all increased attention to water and the role it could play in portfolios. The size of the global water trade is estimated to be around $655 billion per year distributed across sub-sectors such as water treatment, valves, pumps, filtration, desalination and metering. As companies, regulators and investors begin to react to water supply issues, the publication cites six water stocks that could take off. The recommendation is to monitor benefits with American Water Works (NYSE: AWK), Danher (NYSE: DHR), Essential Utilities (NYSE: WTRG), evoked (NYSE: AQUA), Mueller water products (NYSE: MWA) and Xylem (NYSE: XYL).
Sources: EDGAR, Bloomberg, CNBC, Reuters
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these actions.