Lots of Earnings Tuesday as Fed Heads Will Be Out in Force
Plus, the September Consumer Credit report is expected this afternoon.
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* Here's our plan for today - competitor earnings and Fed heads ahead of Powell
* Assessing consumer credit card debt into the September Consumer Credit report
* Earnings from Axon and Coty after today's market close
We're going to have an incrementally busier day for the AAP portfolio today as we dig through quarterly results this morning from CNH Industrial CNHI and Veeco Instruments VECO and listen to this morning's earnings call from NXP Semiconductor NXPI .
What we learn will update our thoughts on Action Alerts PLUS holdings Deere & Co DE , Applied Materials AMAT , and Marvell MRVL , as well as Qualcomm QCOM .
Fed
We also have not one or two Fed speakers today, but a total of five making the rounds and we will be looking for any shifts in sentiment following last week's data but also the recent sell-off in Treasury yields. Those collected comments will offer clues as to what Fed Chair Powell is likely to say about future monetary policy actions.
Our thinking is that so soon after last week's monetary policy presser and ahead of next week's October CPI and PPI data, Powell will trot out the Fed's remaining data dependent, will act as needed, and won't quit until the job is done. In other words, the same comments we tend to hear from him in between meetings when he doesn't want to telegraph much.
With stocks facing technical resistance, muddled comments or underwhelming ones from Powell could lead to markets giving back some of their recent gains. That wouldn't be the worst thing as it would allow us to revisit the Bullpen, especially the shares of Morgan Stanley MS .
Consumer Credit Report
At 3 pm ET, we have the September Consumer Credit report. Inside that report, which the market expects will show a net increase of around $10 billion during the month, we'll be focused on consumer credit card debt levels. Between credit card interest rates and accumulated credit card debt balances as well as the falling savings rate, we want to know how much spending firepower consumers have for this holiday shopping season.
We shared some findings yesterday that consumers are out and about but favoring discount and outlet stores. Helping us figure that out will be today's data but earnings later in the week from Ralph Lauren RL , TripAdvisor TRIP , MGM Resorts MGM , and Disney's DIS Park expectations for the current quarter.
And after the close, we have quarterly results from Axon AXON and Coty COTY .
Consensus expectations call for Axon to deliver EPS of $0.76 on revenue of $391.1 million and guide its current quarter to EPS of $0.81 on revenue of $417 million.
For Coty, those figures are EPS of $0.17 and $1.58 billion in revenue for its September quarter and $0.19 and $1.72 billion for the current one. Earnings from competitors Motorola Solutions MSI and what Estee Lauder EL and LVMH LVMHF reported as well as guided for their fragrance businesses point to solid results from Axon and Coty tonight.
Action Alerts PLUS is long DE, AMAT, MRVL, QCOM, AXON, COTY.