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Nike, FedEx, General Mills, Micron Earnings

The focus will shift to the consumer-facing firms FedEx Corp., General Mills Inc., and Nike Inc.’s upcoming earnings announcements the following week. The yen strengthens as the Bank of Japan increases its yield target range, depressing the Nikkei 225.

As the Bank of Japan adjusted its yield curve management tolerance range while maintaining its ultra-low benchmark interest rates, markets in the Asia-Pacific region also declined.

  • The Topix slid 1.54% to 1,905.59, 
  • The Nikkei 225 dropped 2.46% to 26.568.03, leading to declines in the region. 
  • To reach 132.7, the Japanese yen gained around 3% against the US dollar, marking its highest level in more than three months.
  • The Kospi in South Korea sank by 0.77% to 2,334.09.
  • The S&P/ASX 200 in Australia likewise traded at a lower level, falling by 1.54% to 7,024.3.
  • The Hang Seng index in Hong Kong lost 1.61% in the last hour of trading, with property and technology firms being the main culprits. 
  • The People’s Bank of China maintained its key lending rates, which caused the Shenzhen Component and Shanghai Composite to decline by 1.4% and 1%, respectively, in mainland China.
  • Stocks on Wall Street dipped overnight in the United States, making it the third straight day of losses for all three averages as worries about an impending recession outweighed hopes for a year-end surge.

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Japan Financial Stocks Rise

Following the Bank of Japan’s announcement that it will expand its yield curve control band, stocks of financial institutions and banks on Japanese exchanges increased.

After the announcement, the price of Mitsubishi UFJ Financial Group, or MUFG, increased by as much as 9.6%; it last traded 5.66% higher.

The final gainer was Sumitomo Mitsui Financial Group, which increased by more than 5%. The gain for Mizuho Financial Group reached 6.5%. 

Earnings to Watch This Week

Stocks fell for a third straight day after the Federal Reserve raised interest rates by 50 basis points on Wednesday, sending the key benchmarks towards yet another weekly loss.

The blue-chip index fell again below a crucial support level that was previously deemed to be the bottom due to declines in Apple (AAPL), IBM (IBM), Nike (NKE), Salesforce (CRM), and Microsoft (MSFT). 

The tech-heavy Nasdaq Composite lost 105.11 points, or 0.97%, to finish the session at 10,705.41, while the S&P 500 Index lost 43.39 points, or 1.11%, to close at 3,852.36. 

Earnings to Watch This Week

The Dow is down 1.7% on a weekly basis, while the S&P 500 has dropped 2.1%. The Nasdaq experienced the biggest drop, with a weekly loss of 2.7%.

According to analysts, investors are already wagering that the Fed will start lowering interest rates sometime in the first quarter of 2019. It is still unclear whether the market fall will continue. 

Increased exposure to the market’s most battered sectors, such as technology and consumer discretionary stocks, could soon pay off.

Here are the equities this week that investors will be watching for earnings. 

Nike, Inc.

Nike, Inc. is an American multinational corporation that creates, develops, produces, markets, and sells shoes, clothes, equipment, accessories, and services on a global scale. On Tuesday, December 20, following the closing of the market, Nike, Inc. is anticipated to announce earnings.

The report will cover the accounting quarter that ends in November 2022. The consensus estimate for EPS for the quarter, based on analyst projections, is $0.66. 

When compared to the prior quarter, which had revenue of $11.36 billion and earnings of 83 cents per share. 

BlackBerry (BB)

On Tuesday, December 20, after the close, BlackBerry is anticipated to release its earnings. On a $168.73 million revenue, Wall Street anticipates BlackBerry to lose 7 cents per share. In contrast, the prior quarter’s $184 million in revenue resulted in a profitability of 0 cents per share.

The price of BlackBerry stock has fallen 54% so far this year and 52% over the last 12 months. And if you purchased and held the stock for the last three and five years, you are probably down 25% and 60%, respectively, over those time periods. 

BHP Group Limited

BHP Group Limited (BHP) is involved in the mining of iron ore, copper, silver, zinc, molybdenum, uranium, gold, energy, and metallurgical coal. The production of steel depends heavily on metallurgical coal. 

On December 20, 2022, BHP Group Limited must submit its results report. For the same quarter the previous year, $0.11 in reported EPS was recorded. 

FactSet Research Systems Inc.

The Q1 earnings figures for FactSet Research Systems are expected on Tuesday, December 20th, before the market opening. The estimated revenue is $510.29M (+20.2% Y/Y), and the estimated earnings per share are $3.63 (+11.7% Y/Y).

FDS has outperformed revenue projections 88% of the time, and EPS estimates 63% of the time over the past two years. EPS projections have had four negative revisions and seven upward revisions in the last three months. 

There have been 0 downward revisions and seven increases to revenue projections. 

General Mills, Inc.

General Mills, Inc. is on December 20, 2022, before the market opens and is anticipated to disclose earnings. The manufacturer of packaged foods and cereals will announce the report for the accounting quarter that ends in November 2022. 

The consensus EPS expectation for the quarter is $1.06, based on analyst projections. For the same quarter the previous year, there was a reported EPS of $0.99. 

FedEx Corporation

FedEx Corporation is expected* to report earnings on Tuesday, December 20, after market close. The report will be for the fiscal Quarter ending Nov 2022. 

According to analysts’ forecasts, the consensus EPS forecast for the quarter is $2.77. The reported EPS for the same quarter last year was $4.83. 

Micron

On Wednesday, Dec. 21, following the closing of the market, Micron Technology, Inc. is anticipated to announce earnings. The report’s fiscal quarter end in November 2022. 

Wall Street expects Micron to lose 12 cents per share on revenue of $4.12 billion. This compares to the year-ago quarter when earnings came to $2.16 per share on revenue of $4.3 billion.

Driven by the sharp and sustained decline of memory chip prices, the shares of Micron have been in a steady downtrend over the past year, falling some 40% in twelve months while plunging almost 45% year to date. 

CarMax, Inc

On Thursday, before the market opens, CarMax, Inc. is preparing to release its third-quarter results report. The consensus EPS expectation for the quarter is $0.61 based on analyst projections. 

For the same quarter a year ago, the reported EPS was $1.53.

During the previous few years, CarMax stock has had some brutal post-earnings declines, including a 24.6% plunge following its September report and a 12.6% next-day decline at this time last year. 

Only two of its past eight post-earnings returns have been profitable.

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  • Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.