After starting the week on a positive note, major stock indexes witnessed volatility and slipped mid-week. Meanwhile, the S&P 500 index regained a part of the lost momentum and closed slightly higher. The Dow Jones Industrial Average added about 45 points before ending the last session.
The general sentiment remained mixed as the resurgence of COVID cases and the unexpected rise in jobless claims offset the optimism surrounding vaccine development. Also, the return of restrictions has triggered fresh concerns about the economy.
Earlier, data published by the Labor Department showed initial jobless claims increased to 742,000 in the week ended November 14, on a seasonally adjusted basis, defying economists’ expectations for a sequential decrease. With the situation not improving, the call for additional stimulus is getting louder.
The earnings scene was dominated by retailers last week, with Walmart and Home Depot reporting stronger-than-expected results supported by the pandemic-driven shopping spree. They were joined by Target Corp., though the grocery retailer registered a slowdown in comp sales.
While most store operators entered the holiday season on an upbeat note, others like Kohl’s and Macy’s failed to impress the market as sales got affected by factors like discretionary spending. Semiconductor firm Nvidia reaffirmed its dominance in graphics chips by registering double-digit growth in third-quarter revenue.
Elsewhere, online search service provider Baidu (BIDU) reported positive third quarter numbers riding the rapid adoption of digital services during the COVID period. Electric vehicle maker NIO, another Chinese company, improved its position in the most recent quarter with record deliveries and revenues that more than doubled year-over-year.
Dollar Tree is among the few important firms reporting earnings next week, even as the season enters the final phase. When the discount store operator reports third-quarter results on November 24, the market will be looking for a modest increase in earnings.
Tech firms Analog Devices and HP, Inc. will also be releasing their latest numbers on Tuesday. Chinese e-commerce firm Baozun is scheduled to publish earnings early next week.
After a lull, M&A activity picked up momentum last week, with IBM acquiring two companies – software firm Instana and SAP consulting partner TruQua Enterprises, LLC. — as part of its hybrid cloud growth strategy.
Key Earnings to Watch
Monday: Agilent Technologies, Urban Outfitters, Korn Ferry, Nutanix, Niu Technologies, Warner Music Group, and Baozun
Tuesday: Abercrombie & Fitch, Analog Devices, American Eagle Outfitters, Dick’s Sporting Goods, Dollar Tree, VMware, Autodesk, Nordstrom, HP Inc., Best Buy, Gap Inc., Anaplan, Dell Technologies, and Medtronic
Wednesday: China Biologic Products, Deere & Co, BRP Inc. and So-Young International
Key Investor Days/AGMs to Watch
Key US Economic Events
Looking Back
The following are notable companies which have reported their earnings last week. In case if you have missed to catch up on their performance, click the respective links to skim through the transcripts to glean more insights.
Baidu (BIDU)
Palo Alto Networks (PANW)
Wal-Mart (WMT)
Home Depot (HD)
Target (TGT)
Lowe’s (LOW)
NVIDIA (NVDA)
Macy’s (M)
Intuit (INTU)
Workday (WDAY)
If you want to listen to how management responds to analyst questions and the tone they use, you can head over to our YouTube channel to listen to conference calls on the go.
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