Welcome to Seeking Alpha’s Stocks to Watch – a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.
China’s Vice Premier Liu plans to travel to the U.S. next week in what could be another step forward in trade negotiations. There are also bookend economic reports due out that could impact trading now that the impact of the government shutdown has been outlived. Retail sales come out on April 1, with expectations for a steady 0.3% month-over-month gain after auto sales are stripped out. When the March jobs report arrives on April 5, economists are looking for 170K job adds in a strong bounce from last month’s weak +20K mark. Average hourly earnings are seen slowing to a +0.3% M/M pace. On the corporate front, Boeing (NYSE:BA) and Tesla (NASDAQ:TSLA) face some hurdles. A preliminary report from U.S. authorities on the crash of Ethiopian Airlines’ Boeing 737 Max could arrive. Meanwhile, Elon Musk will be squaring off in court against the SEC over contempt of court charges for his tweeting. Legal experts think a contempt finding could subject Musk to a higher fine or increased restrictions, while there’s also an outlier scenario where the judge boots Musk from Tesla’s board or CEO position for a period of time. Just to make things really interesting, Tesla is due to update on Q1 deliveries just about the time some other major automakers disclose U.S. sales figures for March.
Notable earnings reports: Cal-Maine Foods (NASDAQ:CALM) on April 1; GameStop (NYSE:GME) and Walgreen Boots Alliance (NASDAQ:WBA) on April 2; Signet Jewelers (NYSE:SIG) and Acuity Brands (NYSE:AYI) on April 3; Constellation Brands (NYSE:STZ), Duluth Holdings (NASDAQ:DLTH) and RPM International (NYSE:RPM) on April 4; Greenbrier (NYSE:GBX) on April 5. See Seeking Alpha’s Earnings Calendar for the complete list of earnings reporters.
Projected dividend changes (quarterly): HP Enterprise (NYSE:HPE) to $0.13 from $0.1125, Constellation Brands (STZ) to $0.84 from $0.74, Cal-Maine (CALM) to $0.16 from $0.149, Greenbrier (GBX) to $0.27 from $0.25, Bank OZK (NASDAQ:OZK) to $0.23 from $0.22, Signet (SIG) to $0.42 from $0.37.
U.S. auto sales: Select automakers are scheduled to report March U.S. sales numbers on April 2. Edmunds expects auto sales to fall 4.0% Y/Y during the month to 1.588M units. Sales in Q1 are expected to be down 3% or 122K units lower than in 2018. “We can now confidently say new vehicle sales are past their peak; the question now is what the new normal will be,” notes analyst Jeremy Acevedo. “With new vehicle prices continuing to rise, interest rates sustaining post-recession highs and leasing growing increasingly expensive, pressure on the market is mounting,” he adds. Edmunds forecast by automaker – General Motors (NYSE:GM) -8.4% to 271K, Ford (NYSE:F) -5.7% to 229K, Toyota (NYSE:TM) -2.6% to 217K, Fiat Chrysler (NYSE:FCAU) -7.6% to 200K, Honda (NYSE:HMC) -0.1% to 142K, Nissan (OTCPK:NSANY) -13.8% to 140K, Hyundai/Kia (OTCPK:HYMLF) +1.5% to 114K, Volkswagen (OTCPK:VWAGY) -2.0% to 52K, Tesla (TSLA) 22,062 units.
Analyst/investor meetings: Teck Resources Limited (NYSE:TECK) plans to update on company strategy, financial performance and the outlook for its business units on April 3. Other meeting scheduled for the week include Southwest Gas (NYSE:SWX) on April 4 and both NetApp (NASDAQ:NTAP) and Strongbridge Biopharma (NASDAQ:SBBP) on April 5.
M&A tidbits: Merger closings are expected on April 1 for the Blue Hills Bancorp (NASDAQ:BHBK)-Independent Bank (NASDAQ:INDB), HomeTown Bankshares (OTC:HMTA)-American National Bankshares (NASDAQ:AMNB) and National Commerce (NASDAQ:NCOM)-CenterState Bank (NASDAQ:CSFL) deals. The FCC shot clock on the Sprint (NYSE:S)/T-Mobile (NASDAQ:TMUS) merger starts ticking again on April 4. There is a status hearing scheduled on April 5 on the settlement that allowed CVS Health (NYSE:CVS) to acquire Aetna.
Buyback blues: The market is set to lose the support of some buyback action next week with 78% of the S&P 500 in a so-called blackout period ahead of earnings to be followed by 86% for the week of April 8. While many companies still repurchase shares through a SEC rule allowing trading on a preset schedule, market watchers think the blackout period ahead of the flurry of Q1 earnings reports could add to volatility.
D.C. matters: The U.S. House Ways and Means Committee plans to vote next week on legislation to rework parts of the IRS and boost retirement savings.
Macau The Gaming Inspection and Coordination Bureau will publishing Macau gross gaming revenue numbers for March during the first few days of April. Macau GGR is expected to fall during the month compared to a year ago, with forecasts ranging from -6% to -3%. Names to watch for volatility include Wynn Macau (OTCPK:WYNMF,OTCPK:WYNMY, Wynn Resorts (NASDAQ:WYNN), Sands China (OTCPK:SCHYY, OTCPK:SCHYF), Las Vegas Sands (NYSE:LVS), MGM China (OTCPK:MCHVF, OTCPK:MCHVY), MGM Resorts (NYSE:MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF, OTCPK:SJMHY), Melco Resorts & Entertainment (NASDAQ:MLCO) and Studio City International (NYSE:MSC).
Short report: Stocks expected to see some extra volatility due to a high percentage of short positions to total float include Funko (NASDAQ:FNKO), Tenax Therapeutics (NASDAQ:TENX), Intrexon (NASDAQ:XON), Overstock.com (NASDAQ:OSTK), Gogo (NASDAQ:GOGO), Trupanion (NASDAQ:TRUP), Fossil (NASDAQ:FOSL), Papa John’s International (NASDAQ:PZZA), PetMed Express (NASDAQ:PETS) and Viking Therapeutics (NASDAQ:VKTX).
Dow shuffling: Dow Inc. (DOW) will replace DowDuPont (NYSE:DWDP) in the Dow Jones Industrial Average ahead of the opening bell on April 2. The change follows DowDuPont’s announcement that it is splitting into 3 companies (Dow, DuPont and Corteva Agriscience). Dow Inc. will be headquartered in Midland, Michigan and operate as a materials science solution provider.
CinemaCon 2019: Theater owners, media companies and studios hit Las Vegas at a crucial time in the entertainment industry. Variety thinks the event could spark debate over film release windows and content deals. Many of the usual suspects like Cinemark (NYSE:CNK), Warner Bros. (NYSE:T), Disney (NYSE:DIS), Amazon Studios (NASDAQ:AMZN), Universal (NASDAQ:CMCSA) and Dolby (NYSE:DLB) will be at CinemaCon, while Sony (NYSE:SNE) and Netflix (NASDAQ:NFLX) are notably skipping the affair. Keep an eye on Generation NEXT Vending Robots (OTCQB:VEND) as a company that could draw some attention.
Cowen and Company 5th Annual Future of the Consumer Conference: Walmart (NYSE:WMT) is one of the headliners of the event, with a fireside chat by executive VP Janey Whiteside scheduled for April 2. Also making an appearance at the conference are Planet Fitness (NYSE:PLNT), Lifeway Foods (NASDAQ:LWAY), Joint Corp (NASDAQ:JYNT), Tanger Factory Outlet Centers (NYSE:SKT), Ulta Beauty (NASDAQ:ULTA) and Nordstrom (NYSE:JWN).
AACR meeting: Companies due to release information at the American Association for Cancer Research meeting on April 1-3 include MacroGenics (NASDAQ:MGNX), Incyte (NASDAQ:INCY), Idera Pharmaceuticals (NASDAQ:IDRA), Atara Biotherapeutics (NASDAQ:ATRA), AstraZeneca (NYSE:AZN), Clovis Oncology (NASDAQ:CLVS), Dynavax Technologie (NASDAQ:DVAX), Jounce Therapeutics (NASDAQ:JNCE), Merck (NYSE:MRK) and TG Therapeutics (NASDAQ:TGTX).
Upcoming stock splits: InspireMD (NYSEMKT:NSPR) will trade on April 1 on a 1-for-50 split basis. W. R. Berkley Corporation (NYSE:WRB) plans for a 3-for-2 split on April 2. Roadrunner Transportation Systems (NYSE:RRTS) has a 1-for-25 reverse split scheduled for after the close on April 4.
Tax jolt: The federal tax credit for buyers of GM’s (GM) Chevy Bolt drops to $3,750 on April 1 as part of a phase-out triggered when the automaker topped 200K cumulative EV sales. Tesla (TSLA) hit the 200K mark last year July and saw the phase-out kick in during January.
Business call: McEwen Mining (NYSE:MUX) has a conference call scheduled for April 2 at 11:00 am EDT to discuss the company’s recent $25M offering and to provide an overview of operations year to date and expectations for the balance of the year.
Box office: Disney (DIS) live-action film Dumbo is expected to rake in $56M to top the U.S. box office for the weekend. Universal’s (CMCSA) Us is anticipated to haul in $39M during its second weekend in theaters, while Disney’s Captain Marvel is seen just topping $20M in its third weekend of action.
Barron’s mentions: The publication thinks Centene’s (NYSE:CNC) acquisition of WellCare (NYSE:WCG) makes strategic sense as Centene gains “heft and clout” in negotiating with healthcare providers on top of more Medicare market share. The biggest company most people have never heard of, Amphenol (NYSE:APH), is called out as a potential outperformer. AT&T (T) and Verizon (NYSE:VZ) are sized up side by side in a deep dive by Nicolas Jasinki, with AT&T emerging on top due to its large dividend and long-term potential. Tae Kim asks why is Apple being so frugal with streaming TV with $130B in its back pocket? Finally, FedEx (NYSE:FDX) and JPMorgan (NYSE:JPM) are identified as a subtle way to invest in blockchain technology without the risk of a pure-play like Riot Blockchain (NASDAQ:RIOT).
Sources: CNBC, Nasdaq, EDGAR, Reuters, Box Office Mojo, Bloomberg
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.