Investors, analysts and economists are in anticipation of numerous events in the stock market and the broad U.S. economy lined up this week. Several companies like Nike, Lennar, Adobe, Salesforce, Costco, Darden restaurants among others will release their quarterly earnings reports while others will hold investor days this week.
However, the main event this week will be the Federal Reserve’s policy meeting for the month of September as investors are looking forward to ascertaining whether the Fed will release new measures or scarp off what had been in place. There will also be economic data released by several departments in majorly housing and real estate sector.
Lennar reports quarterly earnings today; Adobe, AutoZone, and FedEx will report theirs tomorrow on Tuesday while General Mills will release its report on Wednesday. Nike, Costco, Accenture, and Darden Restaurants will wind up the earnings week on Thursday. Biogen, Weyerhaeuser, and Salesforce will hold investor days on Tuesday, Wednesday, and Thursday respectively.
Earning reports and investor days aside, other events happening this week include the Federal Reserve Bank’s monetary policy committee meeting starting tomorrow running through Wednesday. Economists don’t expect the Central Bank to change its target interest rate range, they expect the bank to update them about its plans to begin tapering its monthly asset purchases, with Fed Chair giving a press conference on Wednesday afternoon.
We will also have economic data on housing from the Conference Board’s Leading Economic Index for August, the National Association of Home Builders’ Housing Market Index for September, the Census Bureau’s new residential construction data for August, and the National Association of Realtors’ existing-home sales for August.
Lennar Corporation (ticker: LEN), a home construction and real estate company based in Fontainebleau, Florida, is one of the largest home construction companies in the United States. The company is reporting its earnings report for its third quarter of the 2021 fiscal year (Q3 FY2021) today, Monday, September 20, 2021, after market close.
Wall Street analysts expect the company to report Earnings Per Share (EPS) of $3.27 in Q3 FY2021, which is a growth of 54% year over year. Lennar posted an EPS of $2.12 in the same quarter in Q3 FY2020, and it has consecutively beaten EPS expectations in the previous four quarters. Lennar has a market capitalisation of $101.28 with a market capitalisation of $30.98 billion.
Merck & Co., Inc. (ticker: MRK), an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey, is set to present data on its portfolio of cancer drugs today. The company will release this data at the European Society for Medical Oncology 2021 Congress. Merck’s stock is currently trading at $71.68 a share, and it has a market cap of $181.45 billion.
The final activity happening today is the release of the Housing Market Index data for September by the National Association of Home Builders. Economists project a 73 reading, two points lower than August’s figure.
Adobe Inc., (ticker: ADBE), formerly called Adobe Systems Incorporated, will release its Q3 FY2021 earnings report in an earnings conference call that will be webcast live at the company’s website. This multinational computer software company has a market capitalisation of $311.79 billion, and its stock is trading at $652.81 a share. Adobe’s shares have gained 32.97% this year so far.
AutoZone, Inc. (ticker: AZO), the largest retailer of aftermarket automotive parts and accessories in the United States will release its Q3 FY2021 earnings report on Tuesday, September 21, 2021. The company’s stock, which currently trades at $1,591.59 has rallied 34.83% year to date. The company has a market cap of $34.29 billion.
FedEx Corporation (ticker: FDX), is releasing its earnings report for the company’s first quarter of the 2022 fiscal year (Q1 FY2022) tomorrow. The company announced that the press release for the earnings report will be available one hour and fifteen minutes before the earnings call which will be webcast on the company’s website. Headquartered in Memphis, Tennessee, FedEx focuses on transportation, e-commerce and business services and it has seen its stock decline 0.83% year to date, to currently trading at $251.08 a share. FedEx has a market cap of $66.84 billion.
Earnings reports aside, there will also be an investor day tomorrow hosted by Biogen Inc. (ticker: BIIB), a biotechnology company based in Cambridge, Massachusetts. The company will discuss its pipeline of neuroscience therapeutics.
The Census Bureau is also reporting new residential construction for August tomorrow on Tuesday, and consensus economists estimate a seasonally adjusted annual rate of 1.55 million housing starts. This will be 1% higher than the July level, but lower than their post-financial crisis peak of 1.725 million in March of this year.
The Federal Reserve will announce its monetary policy decision for September on Wednesday, September 22, 2021, with economists expecting the Fed to keep interest rates unchanged at near zero. However, as has been expected for a few months now, economists expect the Central Bank to start reducing its asset purchases later this year.
General Mills Inc. (ticker: GIS), manufacturer and marketer of branded consumer foods sold through retail stores is releasing its earnings report for the Q1 FY2022. The company’s stock is currently selling at $59.02 a share, and it has registered a slight drop of 0.02% year to date. The company has a market cap of $35.78 billion.
Medical devices manufacturer Boston Scientific (ticker: BSX), real estate investment trust company Weyerhaeuser Co (ticker: WY), and fast-food restaurant company Yum China Holdings (ticker: YUMC) all host their 2021 investor days on Wednesday.
Just like the Fed in the U.S., the Bank of Japan will also announce its monetary policy decision on Wednesday, and economists expect it to keep its key short-term interest rate unchanged at -0.1%. This is mostly because Japan’s capital, Tokyo, and other regions are still in a state of emergency up to the end of this month due to a surge in infections of the delta variant of COVID-19.
The National Association of Realtors will wind up Wednesday activities with a report of existing-home sales for last month. The report is expected to post a seasonally adjusted annual rate of 578,000 homes sold. This will be a drop of 3.5% from July’s 599,000.
Nike Inc. (ticker: NKE), a leading designer, developer, manufacturer, and worldwide marketer and seller of footwear, apparel, equipment, and accessories majorly for sports and leisure will release its Q1 FY2022 earnings report on Thursday, September 23, 2021. The company’s stock has gained 10.54% so far this year, currently trading at $154.86, and has a market cap of $246.16 billion.
Other companies releasing their earnings reports on Thursday are IT services and consultancy firm Accenture Plc (ticker: ACN), big-box retail store operator Costco Wholesale Corporation (ticker: COST), and Darden Restaurants Inc. (ticker: DRI).
Cloud-based software company Salesforce (ticker: CRM) will hold its 2021 investor day on this day.
The Conference Board will round up Thursday activities with the release of its Leading Economic Index for August. Economists expect a 0.5% rise in August, dropping from a 0.9% rise in July. The Board currently projects 6% Gross Domestic Product (GDP) growth in the U.S. for 2021, and a drop to 4% next year.
Not much to look out for on Friday but transportation holding company Kansas City Southern (ticker: KSU) will host a special shareholder meeting to vote on a proposed merger with Canadian Pacific Railway (ticker: CP).
PS: Company current stock prices are quoted by press time and are subject to change at any time.