The following are the notable earnings for this week:
BABA – earnings report will be released on May 14, before market. Closed last May 10 at 80.04. Our play to this is similar to SHOP which released a weak guidance last week. I think the earnings outcome to this will be similar. China is still trying to recover from the effects of the real estate crisis. I will be checking the contract premium of 75p / 72p/ 70p.
HD – earnings report will be released on May 14, before market. Closed last May 10 at 346.43. In my opinion this will set the market sentiment about how consumer spending will be viewed in the future. Consumer sentiment is dropping as we see prices of basic needs still high. I think forward guidance will be weak as we see a drop in house building and renovation from this year alone. As long as the cost of borrowing is high, we think home improvement and renovation will be set aside by most households in order to give priority to basic necessities such as food and health related services. I will be checking the contract premium of 330p/ 325p/ 320p.
WMT – earnings report will be released on May 16, before market. Closed last May 10 at 60.48. I think whatever the result of this earnings report, this is enough to set what kind of market sentiment will be for the rest of the week. I think they will beat the estimates somehow as more people opted to buy at Walmart because of its low prices, but the problem here is they might give a weak guidance as more and more people try to hold onto major spending such as entertainment upgrades. I will be checking the contract premiums of 57p/ 55p/ 52p.
Nothing is guaranteed here. Stocks mentioned above could trade sideways depending on the earnings outcome.