By Wallace Witkowski, MarketWatch Home Depot, Lowe's, Target
report results
SAN FRANCISCO (MarketWatch) -- Earnings season wraps up this
week as the last Dow component and most of the remaining S&P
500 companies report. Retail earnings, which took a hit with poor
September sales, will again be in focus.
Stocks finished up for the fourth week in a row with the Dow
Jones Industrial Average (DJI) and the S&P 500 Index (SPX) both
up 0.4%, and the Nasdaq Composite Index gaining 1.2%. Upward
momentum on the S&P 500 appears to be running out of steam as
the index has closed above its 5-day moving average 21 days in a
row, something that's only happened three times in the past 20
years.
Home Depot is the last of the Dow components to report this
season, and reports this week will be dominated by retailers. Just
over 20 S&P 500 companies will report this week.
The concern at the beginning of earnings season that a stronger
dollar would put a dent in profits was warranted.
Profit and revenue from companies with more than 50% of their
sales outside of the U.S. fared significantly worse than
counterparts that rely mainly on domestic sales this season,
according to John Butters, senior earnings analyst at FactSet.
The good news is that most retailers reporting this week rely
solely on North American sales. They'll need that help. The bad
news is that the final month of the quarter, September, saw the
first dip in retail sales in eight months. Plus, the consumer
discretionary sector, of which retail is a part, is the worst
performing this season when it comes to earnings growth.
During the past week, retailers that reported results missed
consensus sales estimates for the third quarter, with the notable
exception of Wal-Mart Stores Inc.(WMT).
That makes holiday sales -- those of the current quarter -- all
the more crucial. So far, there's a shred of optimism as October
sales rose 0.3%, or 0.5% when gasoline sales were stripped out.
Notable companies reporting earnings this week
Report Date Company/Ticker (FactSet EPS / revenue estimate)
Monday, Nov. 17 Urban Outfitters Inc. (41 cents / $813 million)Tyson Foods Inc. (76 cents / $10.29 billion)Agilent Technologies Inc. (67 cents / $1.81 billion)
Tuesday, Nov. 18 Home Depot Inc. ($1.13 / $20.46 billion)Dick's Sporting Goods Inc. (41 cents / $$1.53 billion)TJX Cos. (85 cents / $7.44 billion)Medtronic Inc. (96 cents / $4.37 billion)
Wednesday, Nov. 19 Target Corp. (47 cents / $17.55 billion)Staples Inc. (36 cents / $5.93 billion)L Brands Inc. (39 cents / $2.32 billion)Lowe's Cos. (58 cents / $13.55 billion)Williams-Sonoma Inc. (63 cents / $1.12 billion)Keurig Green Mountain Inc. (76 cents / $1.16 billion)Salesforce.com Inc. (13 cents / $1.37 billion)
Thursday, Nov. 20 Best Buy Co. (24 cents / $9.09 billion)Dollar Tree Inc. (64 cents / $2.07 billion)Gap Inc. (76 cents / $3.97 billion)GameStop Corp. (61 cents / $2.21 billion)Ross Stores Inc. (87 cents / $2.55 billion)Michaels Cos. (26 cents / $1.09 billion)Intuit Inc. (loss of 20 cents / $621.1 million)Marvell Technology Group Ltd. (29 cents / $976.9 million)Autodesk Inc. (22 cents / $601.8 million)Splunk Inc. (1 cent / $107.2 million)
Friday, Nov. 21 Ann Inc. (73 cents / $657.8 million)Foot Locker Inc. (79 cents / $1.72 billion)Hibbett Sports Inc. (61 cents / $221.3 million)
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