Big banks will lead off the Q3 earnings season next week with investors likely to see more surprises than normal due to the uncertainty of forecasting numbers amid a pandemic. Of note, the 12 largest U.S. banks are all forecast to report a profit. Overall, Q3 profit for S&P 500 companies is forecast to be down 21% Y/Y to improve on the 31% drop recorded in Q2. On the event calendar, Apple’s (NASDAQ:AAPL) iPhone reveal and Zoom Video’s (NASDAQ:ZM) two-day Zoomtopia stand out. Economic highlights in the week ahead include the consumer price report, the latest Philadelphia Fed Index reading and an update on retail sales. More stop and go with stimulus talks seems like a decent bet as well.
Earnings spotlight: BlackRock (NYSE:BLK), Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Delta Air Lines (NYSE:DAL), Johnson & Johnson (NYSE:JNJ) on October 13; Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), PNC (NYSE:PNC), Progressive (NYSE:PGR), U.S. Bancorp (NYSE:USB), UnitedHealth (NYSE:UNH), United Airlines (NASDAQ:UAL) and Wells Fargo (NYSE:WFC) on October 14; Charles Schwab (NYSE:SCHW), Morgan Stanley (NYSE:MS), Truist (NYSE:TFC) and Walgreens Boots Alliance (NASDAQ:WBA) on October 15; Ally Financial (NYSE:ALLY), Bank of New York Mellon (NYSE:BNY) and J.B Hunt Transport (JBH) on October 16.
IPO watch: Codiak BioSciences (CDAK), Array Technologies (ARRY), MINISO Group (MNSO), Spinal Elements (SPEL), Jupiter Wellness (JUPW) and Aziyo Biologics (NASDAQ:AZYO) are expected to price their IPOs next week. IPO lockup periods expire for blocks of shares on Adaptive Biotechnologies (NASDAQ:ADPT), Atreca (NASDAQ:BCEL), HeadHunter Group (NASDAQ:HHR) and Postal Realty Trust (NYSE:PSTL) on October 14. Analyst quiet period expire on Metacrine (NASDAQ:MTCR), Outset Medical (NASDAQ:OM) and Dyne Therapeutics (NASDAQ:DYN) on October 12, as well as Athira Pharma (NASDAQ:ATHA) on October 13. Go deeper: Catch up on all the latest IPO news.
M&A tidbits: The tender offer on the Veritas Capital acquisition of Rosetta Stone (NYSE:RST) expires on October 13. An announcement on a deal between AMD (NASDAQ:AMD) and Xilinx (NASDAQ:XLNX) could arrive next week. Alexion Pharmaceuticals (NASDAQ:ALXN) is on watch amid chatter of private equity interest and AT&T (NYSE:T) is still moving forward with plans for an auction of DirecTV.
Projected dividend changes (quarterly): The tide continues to roll in with new dividend boosts. In the week ahead, expected payout hikes include Brunswick (NYSE:BC) to $0.26 from $0.24, Sensient (NYSE:SXT) to $0.42 from $0.39, Pinnacle West Capital (NYSE:PNW) to $0.8250 from $0.7825 and VF Corp (NYSE:VFC) to $0.50 from $0.48.
Amazon Prime Day: The delayed Amazon Prime Day shopping event will run from October 13-14 in most global markets. Some firms are forecasting that the Amazon sales event could generate as much as $9.9B globally to smash the estimated $6.2B brought in last year. AS many as 200M items could be sold. Amazon is promoting Prime Day as an early start to the holiday shopping vs. the typical focus on summer & back-to-school shopping. JPMorgan says Amazon has been building out its own logistics network in recent years, which should have it well prepared for the holiday season. The firm’s price target of $4,500 on Amazon reps more than 25% upside for the e-commerce giant. Amazon will face some direct competition next week for clicks as Walmart (NYSE:WMT), Best Buy (NYSE:BBY) and Target (NYSE:TGT) will be on the offensive next week by offering their own online discounts and promotions around Prime Day. Walmart’s Big Save event will cover deals on electronics, home, toys, beauty and fashion, while Target’s Deal Days will also hit those categories.
Apple event: Apple (AAPL) is giving the first look at the iPhone 12 in an event called “Hi, Speed” on October 13. The lineup of new phones is expected to include a standard iPhone 12, a smaller iPhone 12 Mini, an iPhone 12 Pro and an iPhone 12 Pro Max. Other products that could be discussed include the HomePod Mini, AirTags tracking devices and AirPods Studio over-ear headphones. Bloomberg reports that the highly-anticipated Apple Silicon Macs will be launched at a separate event in Cupertino in November.
Bank earnings preview: Banks have been mostly left behind in the broad market recovery with investors and analysts pointing to the rising loan losses and challenging interest rate environment. JPMorgan thinks Q3 could mark an inflection point, with net interest income hitting a trough on a quarterly basis and peak credit provisioning now in the past. The 12 largest U.S. banks are all forecast to post a Q3 profit. Go deeper: Compare Seeking Alpha Quant Ratings on banks.
Healthcare watch: Bristol Myers Squibb (NYSE:BMY) is hosting an event to discuss results from the Phase 3 True North trial evaluating Zeposia (ozanimod, which will be presented at United European Gastroenterology Week 2020. The 2020 Virtual Cell & Gene Meeting on the Mesa event running all week will include on-demand presentations from Applied Genetic Technologies (NASDAQ:AGTC), Passage Bio (NASDAQ:PASG), Caladrius Biosciences (NASDAQ:CLBS), Gamida Cell (NASDAQ:GMDA), Iovance Biotherapeutics (NASDAQ:IOVA), Generation Bio (NASDAQ:GBIO) and Genprex (NASDAQ:GNPX).Go deeper: Check out Seeking Alpha’s Catalyst Watch for breakdowns on the events that stand out.
Investor meetings and business updates: Guidewire (NYSE:GWRE) has its virtual Analyst Day scheduled for October 13. Hewlett Packard Enterprise (NYSE:HPE) will host its 2020 virtual Securities Analyst Meeting on October 15. Sanderson Farms (NASDAQ:SAFM) and Vericel (NASDAQ:VCEL) both have investor day events scheduled for October 16.
Zoomtopia: The two-day event sponsored by Zoom Video (ZM) will feature a keynote address by Zoom CEO, a fireside chat with Mark Cuban and talk by guest speaker Nvidia (NASDAQ:NVDA) CEO Jensen Huang. The company will also host an analyst day event as part of the festivities. Ahead of the event, Mizuho initiated Zoom with a Buy rating on its view that Zoomtopia will be a catalyst for investor interest. “We believe Zoom can continue to deliver outsized revenue growth due to its position as a market leader, its global recognition, cross-sell opportunities, and its position in a growing and underpenetrated long-tail market,” previewed analyst Siti Panigrahi.
EV stuff: Renault (OTC:RNSDF) is expected to unveil a new electric SUV concept alongside the production version of the Dacia Spring next week. The French automaker is charging in late with a strong electrification push.
Data reports: The financial sector will have a wave of AUM reports to digest from asset managers. Invesco (NYSE:IVZ), Lazard (NYSE:LAZ) and T. Rowe Price (NASDAQ:TROW) have seen assets under management rise briskly over the last three months. Caterpillar (NYSE:CAT) is also due to post its monthly sales report and videogame names will be on watch with the NPD monthly sales report due out. Last month, Take-Two Interactive (NASDAQ:TTWO), Activision Blizzard (NASDAQ:ATVI), Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT) all saw a bump when sales came in hot.
Barron’s mentions: The publication preaches that the time has come for industrials to outperform. Caterpillar (CAT) and Rockwell Automation (NYSE:ROK) are singled out as companies harnessing the powers of data and automation in ways that should make their sales more consistent and their bottom lines more profitable. A shift toward renewable energy and electric vehicles is said to provide the catalyst for companies with electrification technologies like Quanta Services (NYSE:PWR) and Eaton (NYSE:ETN). In the world of asset managers, AllianceBernstein (NYSE:AB) is called a standout due its growth potential and +8% yield. The word on movie theater stocks like AMC Entertainment (NYSE:AMC), Cinemark (NYSE:CNK), IMAX (NYSE:IMAX) and Marcus (NYSE:MCS) is that the sector is still scrapping for survival. It is noted that at least major film releases are being delayed, instead of heading toward streaming channels.
Sources: EDGAR, Bloomberg, CNBC, The Verge, Reuters