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- Nvidia (NVDA) leads the charge as the earnings season quiets down, but still holds potential for some action.
- China-based Temu owner PDD Holdings (PDD), homebuilder Toll Brothers (TOL) and Target (TGT) are all due to report.
- “Stock market investors will be listening carefully to the week’s commentary from the Fed,” notes IBD’s market exposure gauge.
Explore the latest stock market trends and earnings insights in our comprehensive analysis.
Five Stocks Near Buy Points As Stock Market Climbs
With the major indexes setting record highs, a number of leading stocks have already flashed buy signals. But there are plenty of others moving into position. Among those are Microsoft (MSFT), Intuitive Surgical (ISRG), Novo Nordisk (NVO), Apollo Global Management (APO) and Booking Holdings (BKNG). All have forged shallow bases and have rebounded from their 50-day moving averages. All are close to official breakouts, and some are still offering early entries. For Microsoft, Thursday’s high could act as an alternate buy point. Booking Holdings has shaped a handle with a 3,811.57 buy point. Novo and Intuitive Surgical might also be crafting handles.
Economic Calendar: Data Takes A Back Seat
Fed minutes from the April 30-May 1 meeting, out Wednesday, will get some attention in the coming week. But Wall Street will be more interested in what individual Fed committee members have to say following April’s moderated inflation data reported last week. April new-home sales are out Thursday, as are the flash S&P Global U.S. manufacturing and services surveys for May. The final April surveys showed activity at a four-month low. Durable goods orders, out Friday, will show whether there’s an upturn in business investment. The University of Michigan consumer sentiment index will show whether confidence really dived as much as the preliminary May data indicated.
AI Leader: Nvidia Sales Seen Up 241%
AI chipmaker Nvidia plans to release its fiscal first-quarter results late Wednesday. Analysts expect the graphics-chip leader to earn an adjusted $5.58 a share, up 412% year over year, on sales of $24.51 billion, up 241%, in the quarter ended April 28. That would mark its fourth straight quarter of triple-digit percentage growth in sales and earnings. Stock market investors will key in on its guidance. For the fiscal second quarter, Wall Street is modeling Nvidia earnings of $5.93 a share, up 120% year over year, on sales of $26.52 billion, up 96%. Nvidia stock has built a 10-week cup base with a buy point of 974. The stock has racked up a year-to-date gain of about 86%.
Retail Earnings: AutoZone, Target To Report
Big retail names continue to roll out early year results, but expectations are flat to mixed. Urban Outfitters (URBN) on Tuesday and Target on Wednesday are forecast to deliver mixed results. AutoZone (AZO) expectations are a little higher, with EPS and sales targeting mid-single digit gains. AZO shares have pulled back below 10-week support, up 12% this year.
China Stock Market Leaders: Temu Parent In The Hot Seat
PDD Holdings will report earnings before the market opens on May 22. For the Temu and Pinduoduo parent company’s March quarter, analysts project PDD sales will rise 95% to $10.4 billion, according to FactSet data. Earnings are seen rising 46% to $1.43 per share. PDD stock slumped at the start of the year amid concerns about the Chinese economy and stricter U.S. regulation on Temu. But shares have advanced more than 20% since mid-April and are hovering near a 142.32 buy point from a cup-with-handle base.
Transportation: A Turning Point For Shipping?
Two very different shipping operations report in the coming week, with Dorian LPG (LPG) set to report early, StarBulk due to report late, on Wednesday. StarBulk, based in Greece, runs dry bulk carriers hauling grains, ore and cement. Dorian is a Connecticut-based tanker fleet transporting liquefied petroleum gas. StarBulk offers a 5.46% dividend and is in a buy zone after breaking out from a flat base on May 7. Dorian is also in a buy zone, after clearing a cup-with-handle buy point in early May. StarBulk earnings and revenue are seen soaring by high double digits. That would break a six-quarter losing streak. Dorian is seen slowing sharply, after five quarters of triple-digit earnings growth.
Real Estate: Toll Bros. Faces A High Bar
Luxury-home builder Toll Brothers is in a buy zone ahead of its fiscal second-quarter report late Tuesday. Analysts see EPS growing 45% on a 3% sales increase. But outlook will be critical, with analysts targeting a rollover into earnings declines for the rest of the year. The week’s Federal Reserve comments on inflation strategy, and new home sales data, due Thursday, could also influence Toll’s action for the week.
Conclusion
As we navigate through another earnings season, the focus on key players like Nvidia and the reactions from the Fed provide valuable insights into market dynamics. The performance of sectors such as retail, AI technology, and real estate offers a glimpse into the broader economic landscape, guiding investors towards informed decisions.
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