X Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 were slightly higher Monday morning heading into a new week. Stocks plunged last Wednesday amid a slew of negative news reports on President Trump, but the Dow industrials, S&P 500 and Nasdaq composite closed the week with only modest losses.
Ford Motor (F) will oust CEO Mark Fields on Monday, according to widespread reports. Ford's shares have tumbled 40% over Fields' 3-year tenure.
Earnings season continues to wind down, but there are still a number of quality companies reporting this week. Lowe's (LOW), Best Buy (BBY), Ulta Beauty (ULTA) and not only have earnings on tap, their stocks are in or near buy range. All three retailers either have resistance to the power of Amazon (AMZN), or have learned to cope.
Futures for the Dow industrials, Nasdaq 100 and S&P 500 were fractionally higher vs. fair value.
U.S. crude oil futures rose 0.7%, extending last week's run, closing above $50 a barrel on Friday. At this Thursday's OPEC meeting, members are expected to extend production cuts.
In Asian trading Monday, Japan's Nikkei rose 0.45% and Australia's S&P/ASX 200 advanced 0.8%. China's Shanghai composite fell 0.5% while Hong Kong's Hang Seng climbed 0.9%.
In European morning trade, the U.K.'s FTSE climbed 0.3%,Germany's Dax lost 0.3% and France's CAC-40 was fractionally lower.
Lowe's
The home improvement retailer reports earnings early Wednesday. Wall Street expects a 22% earnings per share rise to $1.06, with revenue up 11% to $16.96 billion. Larger rival Home Depot (HD) reported better-than-expected Q1 earnings last week.
Lowe's shares cleared an 84.10 buy point from a short flat base just above a longer cup-with-handle consolidation. Lowe's held in buy range until retreating with the overall market on Wednesday, closing at 83.75. But shares rebounded, closing at 84.59 on Friday, back above the entry area.
IBD'S TAKE: Buying or holding a stock can be risky heading into an earnings report. Here's an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
Best Buy
The consumer electronics retailer, which seemed doomed as Amazon's showroom just a few years ago, has showed steady gains in profit and share price over the past several years.
Best Buy reports quarterly earnings early Thursday, with analysts expecting the first decline in 13 quarters. Wall Street sees a 9% EPS fall to 40 cents. Revenue also is slated to drop 2% to $8.27 billion, though Best Buy has continued to struggle with top-line growth.
Best Buy shares cleared a 49.45 cup-with-handle buy point on April 21. Shares briefly became extended but generally have stayed in the 5% chase zone. The stock closed at 51.33 on Friday.
Ulta Beauty
Ulta Beauty operates beauty stores offering a wide range of low- to higher-end cosmetics as well as salons. Ulta has managed to thrive as many other mall chains disintegrate. Beauty is a booming consumer market and Amazon hasn't made a massive effort in the beauty field.
Ulta Beauty reports after Thursday's market close. Revenue likely rose 19% to $1.27 billion in its latest quarter with EPS up 24% to $1.80.
On May 2, Ulta cleared a 289.37 buy point from a flat base formed just above a prior flat base. Shares are still in buy range at 294.02 as of Friday's close.
Splunk
Here's a bonus company to consider: Splunk (SPLK) is no retailer, but a data analytics firm.
Wall Street expects Splunk late Thursday to report its loss doubled vs. a year earlier to 4 cents a share in the latest quarter. Revenue should climb 26% to $233.8 million.
Splunk moved past a 66.56 buy point in early May. But the stock fell sharply on Wednesday and Thursday, undercutting that entry point. Splunk closed in the upper half of its range on Thursday and then rose modestly Friday to 65.92.
Peer Tableau Software (DATA) blasted out of a consolidation on May 4 following its latest earnings reports. Tableau has consolidated in buy range since then.
RELATED:
OPEC Meeting, Ulta Beauty, Best Buy, Momo Lead Investing Action Plan
The Big Picture: These Industry Groups Are Feeling No Pain; 4 Tasty Buys
Stocks To Watch: Why You Should Consider Facebook, Starbucks For Your Portfolio Now
How Instagram, Twitter Beauty Selfies Are Changing The Face Of Retail
