Here's your Investing Action Plan: what you need to know as an investor for the coming day.
Microsoft (MSFT), PayPal (PYPL), Schlumberger (SLB) and Dunkin' Brands (DNKN) all report quarterly earnings on Thursday. All four stocks are at or close to proper buy points, so they are definitely worth watching.
Meanwhile, Verizon Communications (VZ) will dial in with earnings offering an update on its Yahoo (YHOO) deal and hints at Apple (AAPL) iPhone 7 demand. Alaska Air Group (ALK) and American Airlines (AAL) are on the runway.
Microsoft
Microsoft reports fiscal first-quarter earnings after the market close Thursday.
Estimates: EPS of 68 cents vs. 67 cents a year earlier. Revenue of $21.71 billion vs. $21.66 billion in fiscal Q1 2016.
Prior Quarter: EPS rose 11% to 69 cents as sales edged up to $22.64 billion.
Stock: Microsoft shares fell 0.2% to 57.53 on the stock market today, closing just above the 50-day moving average. The stock is in a flat base with a potential buy point of 58.80.
Why It Matters: Microsoft still generates most of its revenue from its Windows and Office software, but its Azure and other cloud-computing businesses have been booming as it competes with Amazon (AMZN) Web Services, Alphabet (GOOGL) unit Google and others. Microsoft will reveal how fast Azure was growing over the summer and may indicate if it's outperforming the cloud-computing industry.
IBD'S TAKE: Making new stock purchases just ahead of earnings is especially risky. Read this Investor's Corner on using options during earnings season.
PayPal
PayPal will release Q3 results after Thursday's close.
Estimates: EPS up 13% to 35 cents as revenue climbs 17% to $2.65 billion.
Prior Quarter: EPS rose 9% to 33 cents, revenue up 15% to $2.65 billion.
Stock: PayPal rose 1% to 40.24 on Wednesday, continuing to rebound from its 50-day line. The stock is close to a buy point of 41.40 in a consolidation going back to late March. PayPal hit an all-time high of 42.55 on July 20, 2015, its IPO debut following its spinoff from eBay (EBAY).
Why It Matters: In addition to PayPal's earnings and guidance, analysts will be looking for clarity on the payment processor's new partnerships with credit-card networks Visa (V) and MasterCard (MA).
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Schlumberger
Schlumberger reports Q3 earnings late Thursday, with an analyst call on Friday morning.
Estimates: EPS of 22 cents, down 72%, on revenue of $7.08 billion, off 16%.
Prior Quarter: EPS tumbled 74% to 23 cents as sales declined 20% to $7.16 billion.
Stock: Schlumberger shares rose 2.5% to 83.44 Wednesday, rising above an 82.54 buy point in a cup-with-handle base, hitting a 14-month high intraday. Halliburton reported a surprise profit Wednesday, while crude futures rose to a 15-month high on lower U.S. inventories.
Why It Matters: With oil back above $50 a barrel, how quickly is demand returning for oil services firms such as Schlumberger? The company could offer clues about U.S. shale production in the near future.
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Dunkin' Brands
Dunkin' Brands will report earnings before Thursday's opening bell.
Estimates: EPS should rise 13% to 59 cents, with sales up 2% to $214.75 million.
Prior Quarter: EPS climbed 14% to 57 cents, with sales 2% higher at $216.31 million.
Stock: Dunkin Brands, which owns Dunkin' Donuts and Baskin-Robbins, has been rallying for the past nine months. Shares rose 1.9% to 51, near a 52.40 buy point in a consolidation going back to the July 2015 all-time high of 56.79.
Why It Matters: Dunkin Brands is a rare restaurant stock that is doing reasonably well. Meanwhile, Starbucks (SBUX), which had been outperforming its smaller rival, is trading near a 52-week low.
Verizon Communications
Verizon Communications will release Q3 earnings before Thursday's open.
Estimates: EPS should fall 5% to 99 cents, with revenue down 6% to $31.09 billion.
Prior Quarter: EPS declined 10% to 94 cents, with revenue down 5% to $30.53 billion, the first declines for both in several quarters.
Stock: Verizon shares rose 0.2% to 50.38 on Wednesday. The stock is starting to move sideways after tumbling from July 5 record high, undercutting its 50-day and 200-day moving averages along the way.
Why It Matters: Verizon is the first big U.S. telecom to report Q3 results, so investors will be keen on subscriber data and early hints at Apple iPhone 7 demand. Verizon also may update on its deal to buy Yahoo's core operations in the wake of Yahoo's hacking and spying disclosures.
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Alaska Air Group
Estimates: EPS should fall 3% to $2.09, with revenue up 3% to $1.56 billion.
Prior Quarter: EPS rose 20% to $2.12 as revenue ascended 4% to $1.49 billion.
Stock: Shares rose 1.9% to 73.46 on Wednesday. Alaska Air could be forming a handle in a consolidation going back six months. Shares have rallied since late June as concerns about industry capacity ease.
Why It Matters: Alaska Air will be the biggest domestic-focused carrier to report Q3 earnings so far. It's about to get even bigger if its Virgin America (VA) takeover clears.
American Airlines
American Airlines will report results early Thursday.
Estimates: EPS likely fell 39% to $1.69, with revenue down 1.5% to $10.54 billion.
Prior Quarter: EPS sank 32% to $1.77 as revenue dipped 4% to $10.36 billion.
Stock: American Air shares rose 3.25% to 40.63 on Wednesday, hitting their best levels in nearly six months.
Why It Matters: American Air earnings are expected to decline through Q3 2017 amid global capacity and fare concerns. Any hint that profit growth will return sooner would be welcomed. Analysts will be on the lookout for more insight into American's capacity plans.
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Economy
Philly Fed manufacturing index: The Philadelphia Federal Reserve will release its October manufacturing activity index for the mid-Atlantic region at 8:30 a.m. ET. Economists expect a dip to 7 from September's 12.8, but still positive.
Existing-home sales: The National Association of Realtors will release September existing-home sales data at 10 a.m. ET. Economists expect a slight uptick to an annualized rate of 5.35 million. On Tuesday, the Commerce Department reported September housing starts fell 9% an annual rate of 1.047 million, the lowest since March 2015. On Tuesday, the National Association of Home Builders reported its builder sentiment gauge dipped in October but remained high.
Jobless claims: The Labor Department will release initial jobless claims for the week ended Oct. 15 at 8:30 a.m. ET. Economists expect a slight rise to 250,000, but still near a longtime low.
