A fun fact for readers before we get into Monday’s happenings. Admittedly, I saw this on Twitter, but the source is credible: Did you know that the Dow Jones Industrial Average is on pace for its best June showing since 1938?
As has been discussed at length in this space in recent days, summertime lethargy has been permeating markets. That was evident again Monday as the Nasdaq Composite and the S&P 500 lost 0.32% and 0.17% while the Dow Jones Industrial Average nudged higher by 0.03%.
Investors could get some long-awaited excitement as soon as this week as several Dow components are slated to step into the earnings confessional. Here is a rundown of some of the Dow names reporting earnings this week.
Walgreen Boots Alliance (WBA)
Earnings Date: Thursday, June 27
Pharmacy giant Walgreen Boots Alliance (NASDAQ:WBA) reports fiscal third-quarter results Thursday before the open of U.S. markets. The consensus estimate calls for earnings of $1.43 per share for the Dow’s number 26 holding.
Nike (NKE)
Earnings Date: Thursday, June 27
Athletic apparel and footwear behemoth Nike (NYSE:NKE) delivers fiscal-fourth-quarter results after the close of U.S. markets Thursday and it is worth noting the company is on a five-year streak of not missing Wall Street earnings estimates.
“Analysts are expecting Nike to earn 66 cents a share and report revenue of $10.15 billion. That compares with EPS of 68 cents and revenue of $9.61 billion in the fiscal third quarter,” according to Barron’s.
Monday’s Action
In late trading, about two-thirds of the Dow Jones constituents were in the green, but let’s look at one that was not: Walt Disney (NYSE:DIS). Shares of the entertainment and media conglomerate finished lower by 0.72% to start the week, but let’s not forget another Toy Story movie is in theaters and that is something to think about when considering Disney’s already high-flying stock.
The fourth installment in the Toy Story series took in $118 million over the weekend, ahead of the pace set by the third film in the series. That figure jumps to $239 million on a global basis, indicating Disney very well could have another $1 billion movie on its hands.
Often mentioned here, United Technologies (NYSE:UTX) was one of the Dow’s top performers today, adding 1.03% after an analyst waxed bullish on the stock ahead of its controversial merger with Raytheon (NYSE:RTN). Cowen analyst Cai von Rumohr boosted his rating on UTX to “outperform” while lifting his price target on the stock to $150 from $135.
Investors looking to reduce volatility, and there are likely many of you out there, while positioning for Federal Reserve rate cuts take heart because Goldman Sachs identified some stocks with which to accomplish those objectives. On that list were three Dow components: Caterpillar (NYSE:CAT), Chevron (NYSE:CVX) and Coca-Cola (NYSE:KO).
Bottom Line on the Dow Jones Today
For those getting tired of the small gains and losses recently being notched by the major U.S. equity benchmarks, relief could arrive later this week when the G-20 summit kicks off in Japan. All eyes will be on President Donald Trump and his Chinese counterpart Xi Jinping.
“Trump and Xi are set to meet Friday and Saturday this week at a Group of 20 summit in Osaka, Japan, with investors looking for signs the leaders can work out a truce in a trade war that has raised concerns about global economic growth and corporate earnings,” according to MarketWatch.
The outcome of the Trump/Xi meeting will likely chart the course for stocks early in the third quarter, if not for the rest of the summer.
As of this writing, Todd Shriber did not own any of the aforementioned securities.
