Pfizer to Invest $200 Million in China-based CStone Pharmaceuticals; Target Price $42

Pfizer Inc, an American multinational pharmaceutical corporation, agreed to acquire a 9.9% stake for $200 million in CStone Pharmaceuticals, sending the Hong Kong-listed biopharmaceutical shares up about 40% on Wednesday.

The world’s second-largest pharmaceutical company, Pfizer is to license CStone’s late-stage oncology asset sugemalimab, CS1001, PD-L1 antibody, in mainland China. The Chinese biopharmaceutical company will receive up to $280 million in milestone payments for sugemalimab, and additional royalties. CStone and Pfizer will develop and commercialize additional late-stage oncology therapies in Greater China, the company said in the statement.

Pfizer has agreed to acquire 115.93 million CStone shares at a price of US$1.725 per share.

The Hong Kong-listed CStone Pharmaceuticals’ shares surged as high as 40% to HKD 12.98, highest since October last year, on Wednesday. On the other hand, Pfizer shares closed 0.60% lower at $36.17 on Tuesday; the stock is still down about 8% so far this year.

Pfizer stock forecast

Eleven analysts forecast the average price in 12 months at $42.66 with a high forecast of $55.00 and a low forecast of $35.00. The average price target represents a 17.94% increase from the last price of $36.17. From those 11 equity analysts, four analysts rated ‘Buy’, seven rated ‘Hold’ and none rated ‘Sell’, according to Tipranks.

Morgan Stanley target price is $42 with a high of $48 under a bull scenario and $31 under the worst-case scenario. Berenberg starts with hold rating; price target $38; Independent Research lowered their target price to $37 from $40; rating hold. Pfizer has been given a $43 target price by research analysts at Royal Bank of Canada. The firm currently has a “buy” rating on the biopharmaceutical company’s stock.

Several other brokerages have also issued reports on PFE. Mizuho reiterated a “buy” rating and set a $38 price target. Piper Sandler raised their price target to $24 from $18.50. UBS Group upped their target price to $39 from $37 and gave the stock a “neutral” rating. At last, JP Morgan lowered their target price to $36 from $37 and set a “neutral” rating.

Analyst views

“We project solid growth prospects, and the company’s COVID vaccine candidate offers optionality. Pfizer’s financials and dividend are set to adjust in 4Q20 when it completes the Viatris transaction. Pipeline execution will be key to investor perception, given late-decade patent expiration exposure,” said David Risinger, equity analyst at Morgan Stanley.

“Pfizer projects 2025 sales of $55.7 billion, which reflects 6%+ 5-yr CAGR ’20-’25. Pfizer has strong growth potential in both existing and pipeline products – it forecasts $8 billion in incremental sales from each in 2025. Non-risk adjusted pipeline revenue is projected to be $15 billion+ by 2025, including $6 billion from Vaccines, $3 billion from Inflammation & Immunology, $3 billion from Rare Disease, and $3 billion from Oncology; risk-adjusted revenue is $8 billion. Prevnar 20V is not included as part of 2025 vaccine pipeline sales because it will cannibalize the existing 13V,” Risinger added.

Upside and Downside Risks

Upside: COVID vaccine success, better COVID vaccine data than competitors, core business financial upside, positive pipeline developments, and encouraging strategic action, highlighted by Morgan Stanley.

Downside: COVID vaccine failure, COVID vaccine underperforms competitors, financial shortfalls, pipeline disappointments, disappointing strategic action, and negative US drug pricing developments.

Trillium Therapeutics Shares Soar Over 40% on $25 Million Pfizer Investment, Impressive TTI-622’s Safety Profile

Trillium Therapeutics, a clinical-stage immuno-oncology company developing innovative therapies for the treatment of cancer, said it received an equity investment of $25 million from the pharma giant Pfizer Inc; also investors remain upbeat over the impressive safety profile of TTI-622, an antibody-like fusion protein to be used for treating cancer, sending the stock soaring in after-hours trading on Tuesday.

Trillium Therapeutics’ shares jumped over 40% to $13.37 in after-hours trading. Also, the stock is up over 800% so far this year after closing at $1.03 in 2019.

Trillium Therapeutics said that it has agreed to sell nearly 2.3 million of its common shares at a price of $10.88 per share to Pfizer for gross proceeds of $25.0 million. The offering is expected to close on or about September 10, 2020.

Moreover, the company said in the phase 1 portion of the study of TTI-622, the safety assessment of the 8 mg/kg dosing cohort has been successfully completed. One Grade 4 thrombocytopenia dose-limiting toxicity was reported among the six evaluable patients; no additional Grade 3 or higher thrombocytopenia events have been observed.

Executive comments

“We are exceedingly encouraged by the evolving profile of TTI-622, our SIRPa-IgG4 Fc fusion protein, as demonstrated in the ongoing dose-escalation study in relapsed and refractory lymphomas,” said Jan Skvarka, Trillium’s President and Chief Executive Officer.

“TTI-622 is showing substantial monotherapy activity in highly pre-treated patients, with a broad therapeutic window, a rapid onset of action, and across a range of lymphoma indications. With no significant safety signals observed, we are further escalating the dose. TTI-621, our SIRPa-IgG1 Fc fusion protein, is showing a strong safety profile, and we have not observed any dose-limiting thrombocytopenia for doses up to 1.4 mg/kg.”

Trillium Therapeutics stock forecast

Three analysts forecast the average price in 12 months at $15.00 with a high forecast of $15.00 and a low forecast of $15.00. The average price target represents a 58.56% increase from the last price of $9.46. From those three analysts, two rated “Buy”, one rated “Hold” and none rated “Sell”, according to Tipranks.

Craig-Hallum set the price target for Trillium Therapeutics at $15 and gave the company ‘Buy’ rating. Jonestrading initiates with buy rating and $15 price target.

Other equity analysts also recently updated their stock outlook. JMP Securities issued an “outperform” rating and a $10.00 price target for the company. BidaskClub downgraded shares of Trillium Therapeutics from a “Hold” rating to a “sell” rating. At last, Zacks Investment Research raised shares of Trillium Therapeutics from a “strong sell” rating to a “Hold” rating.

Analyst views

“We continue to be impressed by the safety profile of TTI-622 and believe this is the strongest monotherapy data shown by a CD47 targeting candidate. Our KOLs have previously suggested that early monotherapy activity for any novel IO drug is important and can be an early sign of success. We believe that even if the higher dose of 12 mg/kg is not tolerable, the 50% ORR achieved at the 8mg/kg level is sufficient to advance this drug further,” said Boris Peaker, equity analyst at Cowen.

“Previous discussions with management indicate that TTI-622 enrollment has been less impacted by COVID-19 since it is targeting a more aggressive tumor type (DLBCL) thanTTI-621 (CTCL). Taking into account both the timing of enrollment and today’s impressive update, we continue to believe that TTI-622 could become the lead drug candidate,” Peaker added.

Risks to Trillium Therapeutics

Clinical Trial Risk: Trillium Therapeutics will require FDA approval to market its products in the U.S. and EMEA in Europe. Failure to gain such approvals would significantly impact the value of the company, Cowen highlighted.

Competitive Risk: There are multiple competing agents in development, for indications in which SIRPαFc is being studied. The success of such agents could significantly affect SIRPαFc market share should it be approved.

Check out FX Empire’s earnings calendar

Middle-Week Screening: Gold Glitters and Shines!

Overview and trends

US stocks rose on Monday as investors looked to major earnings on deck this week and awaited the release of the GOP’s coronavirus stimulus plan. Senate Majority Leader Mitch McConnell finally said that Republicans were ready to present their long-awaited $1 trillion COVID-19 package details, as Democrats remained wary. S&P 500 ended up 0.74%, while Dow Jones Industrial Average was higher 0.44%, and Nasdaq Composite shot up 1.86%.

US stock indices ended down from 0.65% to 1.27% yesterday as investors mulled Senate Republicans’ coronavirus stimulus package and a slew of very surprising earnings reports.

The U.S. republicans continued debating on its fiscal relief plan most of the day. The projected $1 trillion packages will include another round of $1,200 payment checks and additional funds for small-business loans.

A large portion of reporting yesterday companies sadly missed their earnings figures, with most disappointments coming from 3M, McDonald’s and even biotech Pfizer. Oil tumbled through the session, with West Texas Intermediate crude dropping as much as 1.5%, to $41.10 per barrel.

Gold was the leading instrument in the 1st half of trading week. Gold prices took a stratospheric leap last week, jumping from the previous week’s support test at $1800 an ounce to the $1900 level that hasn’t been traded since 2011.

Next day Gold jumped to a record high of $1944 per ounce, driven by an uptick in new U.S. coronavirus cases that have added to economic uncertainty. Shares of Moderna surged after the company said it received an additional $472 million in funding for its COVID-19 vaccine.

Trading ideas

According to a new court filing, multiple California state offices are actively investigating Amazon (AMZN) over worker safety concerns as the coronavirus continues to rage throughout the U.S. An eighth Amazon employee has died of COVID-19, and the virus has spread quickly through clusters of employees at factory floors and warehouses nationwide where social distancing isn’t enforced. Amazon’s own shipping centers have reported outbreaks, including one in the Pocono Mountains and another in Oregon.

The earnings date for Amazon is July 31, an overwhelming majority of high-profile analysts think the numbers will be as stellar as never before. Amazon’s average EPS estimate is $3.6 versus $5.01 it actually earned last quarter. It’s easy to guess that Amazon will beat that number indeed. However, even the bigger question will be how the tech giant is going to address these mounting allegations about poor safety of its employees. It looks like this time around it’s no longer just curiosity.

Global payments processor Visa reports earnings today, on July 29, and it will be more than just one more set of quarterly financial numbers. Investors will get a direct insight into how consumer spending is being affected by the pandemic and an uncertain economy. This quarter revenue for the payments processing giant are expected to drop by roughly 17% to $4.81 billion versus $5.84 billion a year ago. This anticipated drop has a lot to do with lower transaction volume as many stores were closed throughout the quarter. With that said, there is optimism for a potential beat driven by increased digital payment volume as more and more people shopped online.

Indeed, dealing with paper money has now become not only unsafe but also unsanitary. So VISA’s performance will be more or less accurately reflecting the real global consumer spending, and households’ entire propensity to consume, and how efficient the world’s largest central banks’ and governments’ efforts to offset the COVID-19 impact. So fasten your seatbelts!

The Australian dollar has rallied rather significantly on Monday, showing signs of life yet again as the U.S. dollar continues to get hammered against most currencies. Aussie pierced below 1.40 mark, and now this level became its support, rather than resistance level. A couple of times over the past several trading sessions it tried to approach it, but the big return looked invariably spectacular.

So, this level now can be seen as a cemented support for the Australian currency. Its further growth towards 1.35 is highly dependent on the continuation of the gold rally. Australia is the second-largest gold producer in the world with 325 tons per year, right after China. By the way, 2019 was a record year for Australian gold production.

So, the momentum the Australian currency has been gaining lately is not just a coincidence, and if greenback keeps getting softer, and metals keep getting stronger, it would be hard to find a better choice than to take a chance on the Aussie.

One of the less-talked-about but more potent beneficiaries of this year’s gold rally Kinross Gold (KGC) is scheduled to announce Q2 earnings results today, on July 29th, after market close.

The consensus EPS estimate is 13 cents and the consensus revenue estimate is around $1 billion (assuming a 20% growth Year-over-Year). Over the last 2 years, Kinross Gold has beaten EPS estimates 63% of the time and has beaten revenue estimates 50% of the time.

Kinross is gaining from higher production at its two main deposit fields, which already had shown strong momentum in this year’s first quarter. Strong production is likely to have continued in the second quarter. Further, gold prices have been soaring this year making it the most attractive safe-haven asset. Gold prices have gained around 13% in the second quarter — the highest quarterly percentage increase in more than four years.

by Vladimir Rojankovski, Grand Capital Chief Analyst

Markets’ Weather Weekly: Сloud-Computing and Office Software Business Missed Quarterly Estimates.

Overview and trends

U.S. weekly jobless claims hit 1.4 million, the first increase since March, as spiking virus cases halt reopening plans.

Microsoft shares tumbled as much as 2.8% on Thursday after its cloud-computing and office software business missed quarterly estimates. The share price slump caused nearly $46 billion dollars erased from the company’s market capitalization. Intel Corporation (INTC) shares were trading lower yesterday despite the company reported better-than-expected second-quarter EPS and earnings results.

As a result, the tech-heavy Nasdaq Composite finished down 2.3%. The S&P 500 closed down 1.2%. It was their worst performance since June 26. The Dow (INDU) fell 1.3%, or 354 points, its worst day in two weeks.

Stocks weren’t the only assets in the red. The US dollar, as measured by the ICE US Dollar Index, fell 0.2%. The index hit its lowest level since September 2018.

So far quarterly earnings come very mixed. On positive side there are good reports and good responses to the earnings reports from IBM (IBM), Texas Instruments (TXN), Biogen (BIIB), KeyCorp (KEY), as well as yesterday’s miracle from Tesla (TSLA) and upbeat sales commentary from Best Buy (BBY).

Then again, a close candidate for why things are “bad” would be the negative responses to earnings reports from Bank of America (BAC), Netflix (NFLX), Snap (SNAP), Capital One (COF), United Airlines (UAL), and Interactive Brokers (IBKR). Microsoft (MSFT) stock sank over 2% after reporting earnings that beat Wall Street expectations in most ways except in a key business. All these stories prompt us to be extremely vigilant, resourceful and contemplative – correct instrument selection and trade direction is key to trading success through this period!

The week was full of important news. US stocks climbed on Wednesday on positive earnings numbers from Microsoft and Tesla and as traders weighed raging tensions between the U.S. and China, a potential legislative extension to unemployment benefits, and coronavirus vaccine news. Donald Trump’s administration ordered the abrupt closure of China’s consulate in Houston, and official Beijing promptly responded with its intention to close the U.S. consulate in Wuhan in a tit-for-tat game condemned by Beijing as outrageous and unprecedented.

The U.S. government has struck an agreement with Pfizer (PFE) and BioNTech (BNTX) for up to 600 million doses of their COVID vaccine candidate should it be approved. This optimistic expectation and early preparation effort have created positive sentiment in terms of thinking about light at the end of the tunnel down the road.

Trading ideas

The Gold/Silver complex has caught renewed bids this week, which was tipped off by the major gold ETF – SPDR Gold Trust – showing up on the “Doji Week” scan back on Monday. The Doji Week scan is designed to find stocks that are in narrow ranges compared to prior week’s activity that is geared up for a stronger directional move.

There are a number of Gold/Silver – related ETFs and stocks appearing on the Wide Range Breakouts, Power Up, and Overbought results today as the market gets behind their momentum against a sliding US Dollar. As investors’ classics – Barrick Gold (GLD) and Newmont Corp. (NEM) – look increasingly overvalued by both investment multiples and technically, new kids on the block, such as Agnico Eagle Mines (AEM) and Kinross Gold (KGC) look increasingly promising. The two latter stocks unveil single digit price-to-sales ratios as opposed to double-digit ones for Barrick and Newmont.

AT&T (T)

The largest American telecom AT&T (T) beat estimates by 4 cents a share, with quarterly earnings of 83 cents per share. Revenue was in line with forecasts. The company said the COVID-19 pandemic impacted results across all its businesses. Thus, WarnerMedia revenue fell 23% to $6.8 billion as the pandemic shut down film production and movie theaters. Group revenue was down 9% YoY to $41 billion, roughly in line with the $41.1 billion consensus. In contrast, AT&T’s HBO Max boasted by around 36 million active customers (including legacy HBO subscribers), picking up 3 million in the quarter. Cash from operations was $12.1 billion with free cash flow of healthy $7.6 billion.

Total dividend payout ratio remains slightly below 50%. Nevertheless, we must not forget about this telecom’s two extremely important properties: number one, it is the value high dividend stocks. And number two, it is classic defensive countercyclical stock. Given increasing odds of exacerbating recession and noting almost ridiculously cheap valuations at P/E of less than 15, dividend yield of 7% and price-to-cash-flow of just 8 (yes, this is a single-digit number, eight), at the current price level AT&T is perhaps one of very few smart medium term buys.

Vladimir Rojankovski, Grand Capital Chief Analyst

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding 26697 Will Sustain Upside Bias

September E-mini Dow Jones Industrial Average futures are inching higher early Thursday after recovering from a choppy session on Wednesday. The previous see-saw session was fueled by mixed quarterly results and contentious stimulus negotiations in Washington.

Dow component Pfizer gained 5.1% after the drugmaker and German biotech firm BioNTech SE announced the U.S. government would pay $1.95 billion for 100 million doses of their COVID-19 vaccine candidate.

Another Dow component, Microsoft Corp, fell more than 2% after the bell, following the company’s quarterly report.

At 05:34 GMT, September E-mini Dow Jones Industrial Average futures are trading 26885, up 1 or 0.00%.

Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27063 will signal a resumption of the uptrend. The main trend will change to down if sellers take out the swing bottom at 26330.

The minor trend is also up. A trade through 26526 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 27063 to 26330. Its 50% level at 26697 is potential support.

The short-term range is 27466 to 24409. Its retracement zone at 26298 to 25938 is another potential support area.

Daily Swing Chart Technical Forecast

The early price action suggests the tone of the market on Thursday is likely to be determined by trader reaction to the minor 50% level at 26697.

Bullish Scenario

A sustained move over 26697 will indicate the presence of buyers. If this is able to generate enough upside momentum then we could see a test of the last main top at 27063. Sellers could come in on the first test of this level, but taking it out could trigger an acceleration to the upside with the June 9 main top at 27466 the next likely upside target.

Bearish Scenario

A sustained move under 26697 will signal the presence of sellers. This could trigger a break into the minor bottom at 26426. If this fails then look for the selling to possibly extend into the main bottom at 26330, followed by the short-term Fibonacci level at 26298.

The Fib level at 26298 is a potential trigger point for an acceleration to the downside with the next likely targets the short-term 50% level at 25938 and another minor bottom at 25874.

For a look at all of today’s economic events, check out our economic calendar.

Pfizer and BioNTech to Get $1.95 Billion from U.S. Govt for COVID-19 Vaccine Doses

Pfizer Inc, an American multinational pharmaceutical corporation headquartered in New York City, and its German partner BioNTech will receive $1.95 billion from the United States government for delivering 100 million doses of a COVID-19 vaccine, sending Pfizer shares up over 5% pre-market.

The U.S. government will pay both the companies $1.95 billion upon the receipt of the first 100 million doses, following FDA authorization or approval. The agreement allows them to acquire an additional 500 million doses.

Americans will receive the vaccine for free consistent with U.S. government’s commitment for free access for COVID-19 vaccines, the Department of Health and Human Services and the Department of Defense said.

U.S. Big Pharma Pfizer and German biotech partner BioNTech expect the COVID-19 vaccine to be ready to seek Emergency Use Authorization or some form of regulatory approval as early as October 2020. Both the companies anticipate producing globally up to 100 million doses by the end of 2020 and potentially more than 1.3 billion doses by the end of 2021.

“We don’t know how many competing vaccines will be sold in the U.S. in 2021, but if BNT162 is administered to 100 million people, the two-dose series would yield US revenue of $3.9 billion. To put it in perspective, dividing half of that figure by Pfizer BioPharma global revenues of approximately $43 billion in 2021e implies 4.5% revenue upside. Pfizer also has 50-50 rights ex-US, where volume potential is much greater but pricing likely lower,” said David Risinger equity analyst at Morgan Stanley.

“We look forward to BNT162 and competitors’ Phase 3 data in 2H:20 and evolution of the competitive landscape over time. Regarding US pricing potential beyond the pandemic period, Pfizer has suggested that it could ultimately charge higher prices for a COVID vaccine. We believe long-term pricing would depend upon 1) relative efficacy & safety of Pfizer’s vaccine vs. others, 2) magnitude of competition, and 3) government negotiations.”

Pfizer’s shares jumped over 5% pre-market, while BioNTech’s NASDAQ-listed shares were up over 10%.

Executives’ comments

“We’ve been committed to making the impossible possible by working tirelessly to develop and produce in record time a safe and effective vaccine to help bring an end to this global health crisis,” said Dr Albert Bourla, Pfizer Chairman and CEO.

“We made the early decision to begin clinical work and large-scale manufacturing at our own risk to ensure that product would be available immediately if our clinical trials prove successful and an Emergency Use Authorization is granted. We are honoured to be a part of this effort to provide Americans access to protection from this deadly virus.”

“We are pleased to have signed this important agreement with the U.S. government to supply the initial 100 million doses upon approval as part of our commitment to address the global health threat. This agreement is one of many steps towards providing global access to a safe and efficacious vaccine for COVID-19,” said Ugur Sahin, M.D., CEO and Co-founder of BioNTech.

“We are also in advanced discussions with multiple other government bodies and we hope to announce additional supply agreements soon. Our goal remains to bring a safe and effective COVID-19 vaccine to many people around the world, as quickly as we can.”

Pfizer stock forecast

Fourteen analysts forecast the average price in 12 months at $41.41 with a high forecast of $55.00 and a low forecast of $35.00. The average price target represents a 12.86% increase from the last price of $36.69. From those 14, six analysts rated ‘Buy’, eight rated ‘Hold’ and none rated ‘Sell’, according to Tipranks.

Morgan Stanley target price under a bull scenario is $41 and $27 under the worst-case scenario. We second Morgan Stanley on Pfizer’s stock outlook. We also think it is good to buy at the current level and target $40 as 50-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.

Analyst view

“We project solid growth prospects, but we note that Pfizer’s financials and dividend are set to adjust. We project solid single-digit long-term growth. Pipeline execution will be key to investor perception,” said David Risinger equity analyst at Morgan Stanley.

Upside and Downside risks

Upside risks are core business upside, positive pipeline developments, strategic action creates shareholder value, and multiple expands due to improving growth prospects, Morgan Stanley highlighted as upside risks to Pfizer.

Downside risks are financial shortfalls, P/E contracts due to pipeline shortfalls, strategic action is disappointing, litigation problems, and negative US drug pricing developments, Morgan Stanley highlighted as downside risks.

Vaccine Hopes, EU Deal Drive Asia Pacific Shares Higher; Alibaba’s Ant Group Announces Dual-Listing

The major Asia Pacific stock indexes rebounded on Tuesday following Monday’s mixed performance with some hitting five-month highs after European Union leaders agreed on a massive stimulus plan for their coronavirus-blighted economies.

The indexes opened higher following Wall Street’s lead on hopes that vaccines against the COVID-19 disease might be ready by the end of the year, following promising early data from trials of three potential vaccines.

On Tuesday, Japan’s Nikkei 225 Index settled at 22884.22, up 166.74 or +0.73%. Hong Kong’s Hang Seng Index is trading 25527.10, up 469.11 or 1.87% and South Korea’s KOSPI Index closed at 2228.83, up 30.63 or +1.39%.

China’s Shanghai Index is trading 3321.38, up 7.23 or +0.22% and Australia’s S&P/ASX 200 closed at 6156.30, up 154.70 or +2.58%.

Asian Shares Boosted by EU Recovery Fund Deal

European Union (EU) leaders reached a deal on a 750 billion Euro ($857 billion) recovery fund to help the region recover from the coronavirus crisis.

European Council President Charles Michel said he believes this deal will be seen as a “pivotal moment” for Europe. “We did it! Europe is strong. Europe is united,” he said in an early Tuesday press conference announcing the agreement. “These were, of course, difficult negotiations in very difficult times for all Europeans.”

Positive Coronavirus Vaccine News Buoys Market Sentiment

Asia Pacific markets were supported early in the session on Tuesday after investor sentiment was supported by a slew of positive news on the coronavirus vaccine front.

Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine Monday and another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial.

Alibaba’s Ant Could Be Bigger than Some Wall Street Banks

Ant Group, an affiliate of Alibaba, announced plans for its long-awaited dual listing in Shanghai and Hong Kong on Monday. E-commerce giant Alibaba Group Holding’s Hong Kong shares jumped 6.59% on the news.

Ant Group runs Alipay, one of China’s most popular mobile payment apps, but has also been expanding into products such as wealth management and loans.

Ant Group has not priced its shares yet but one analyst said the company could be valued at over $200 billion.

For a look at all of today’s economic events, check out our economic calendar.

Mixed China Data, ECB in Focus

On the home front, the University of Oxford and AstraZeneca are working together on a potential vaccine, and yesterday there was chatter that things are going in the right direction. Nothing was announced, but it was speculated that there could be confirmation about the progress in the near-term, and that verification might even come today. Equity benchmarks on both sides of the Atlantic enjoyed decent gains, and some hit multi-week highs, while others set multi-month highs.

The pharma angle gave stocks a new lease of life as lately market participants have been fixated on the rate of new cases and the fatality rate. In the past week, we have also heard positive news from Gilead Sciences, Pfizer and BioNTech. Gilead’s, Remdesivir, can reduce the death rate by 62%, so that is being touted as a possible treatment. While two of the four drugs that Pfizer and BioNTech are working on as potential vaccines have been fast-tracked for FDA approval.

The optimism surrounding the drug stories overshadowed the news that China’s relationship with the US and the UK has deteriorated this week. The British government has banned Huawei from its 5G network. President Trump passed legislation that has removed Hong Kong’s special status, so the territory will lose out in terms of tariffs. In addition to that, the US government might seek to target individuals or organisations that are seen to be helping the Chinese government to impose itself on Hong Kong.

The moves by the UK and the US stem from the decision by the Beijing administration to introduce a law that has chipped away at Hong Kong’s autonomy. Traders will be keeping an eye on the situation, but it seems that the Donald doesn’t want to spark a big economic conflict with China, probably because he has an election to fight in November and his approval ratings are not great.

The US economy continues to rebound. The industrial production rate for June increased by 5.4%, and that was a big improvement from the 1.4% that was posted in May. The New York Fed manufacturing index jumped to 17.2 in July, a 14 month high. The reports suggest there is a lot of pent up demand, and that is being released as the economy is reopening. That level of growth is likely to taper off as it is unsustainable.

Overnight, China released a number of economic reports. The yearly GDP reading for the second quarter was 3.2%, and the consensus estimate was 2.5%. In the first quarter, the GDP reading was -6.8%. Retail sales in June were -1.8%, undershooting the 0.3% forecast, while the previous reading was -2.8%. Industrial production last month showed growth of 4.8%, and economists were expecting 4.7%.

The May report was 4.4%. Fixed asset investment fell by 3.1%, and the forecast was -3.3%, keep in mind the last reading was -6.3%. Equity markets in Asia are in the red as there are concerns that spending and investment in China remains weak. Indices in Europe are expected to open a little lower.

The ECB meeting will be in focus today. The refinancing rate and the deposit rate are tipped to hold steady at 0.0% and -0.5% respectively. Last month, the pandemic emergency purchase programme (PEPP) was upped by €600 billion to €1.35 trillion, and the scheme was extended from the end of 2020 until June 2021. The inflation and growth forecasts were trimmed. It is worth noting that there has been an impressive rebound in certain economic indicators, such as services and manufacturing.

In late June, the bond purchases made as a part of the PEPP, cooled to its lowest level since the stimulus package was expanded. That could be a sign the ECB want to rein in the easing programme as the economy is recovering at a quicker rate than initially expected. Even if the central are happy with the economic rebound, they won’t want to spook the markets. They will probably play it safe and state they are monitoring the situation, and that they are ready to act, should they feel it is required. The rate decision will be revealed at 12.45pm (UK time) and the press conference will start at 1.30pm (UK time).

The US dollar index fell to its lowest level in over one month yesterday as dealers dropped the greenback in favour of riskier assets, such as stocks. The euro benefitted from the slide in the greenback and it hit its highest level since March.

Metals were a mixed bag yesterday. Gold had a muted move, but it held above the $1,800 mark. Silver, benefitted from the softer greenback and it hit a new 10 month high. On the other hand, copper lost over 1.5%. The red metal had a great run from late March until now, and it is possible that dealers squared up their books ahead of the Chinese data being reported.

The Fed’s Beige Book was posted last night and almost all of the 12 districts saw an increase in economic activity as lockdown restrictions were eased. The outlook remains very uncertain, especially in light of the fact that some states are undoing the reopening of their economies.

Oil rallied yesterday on the back of the EIA report, it showed that US oil stockpiles dropped by nearly 7.5 million barrels, while the consensus estimate was for a draw of 2.25 million barrels. Gasoline inventories fell by 3.14 million barrels, and that was a larger drop than expected. The readings paint a picture of a US economy that is consuming more energy, hence the positive move in WTI and Brent crude.

At 7am (UK time) the UK labour reports will be released. The claimants count for June is tipped to fall to 250,000 from 528,900 in May. The unemployment rate is anticipated to rise to 4.2% in May, up from 3.9% in April. The average earnings reading that excludes bonuses to expected to fall to 0.5% in May, from 1.7% in April.

French CPI is tipped to slip to 0.1% in June from 0.4% in May. The report will be posted at 7.45am (UK time).

Traders will be keeping an eye on the various economic reports from the US. Initial jobless claims are tipped to fall from 1.31 million to 1.25 million. The continuing claims reading is anticipated to be 17.6 million, and keep in mind the previous reading was 18.06 million. The retail sales report for May was 17.7%, a record reading, and the June level is tipped to cool to 5%. The retail sales report that strips auto-sales is expected to be 5%, and that would be a fall from the 12.4% registered in May. The Philly Fed manufacturing index is tipped to be 20. The reports will be posted at 1.30pm (UK time).

EUR/USD – since late June it has been in an uptrend, and a break above the 1.1400 zone might put 1.1495 on the radar. A break below the 1.1168 area might pave the way for 1.1053, the 200-day moving average, to be targeted.

GBP/USD – has been trading sideways in the past few sessions. A move higher might run into resistance at 1.2694, the 200-day moving average. A move through that level should put 1.2813 on the radar. Should it move lower, it might find support at 1.2424, the 100 day moving average.

EUR/GBP – Monday’s candle has the potential to be a bullish reversal, and if it moves higher it could target 0.9239. A break below the 50-day moving average at 0.8963, could put the 0.8800 zone on the radar.

USD/JPY – has been drifting lower for the last month and support could come into play at 106.00. A rebound might run into resistance at 108.37, the 200-day moving average.

FTSE 100 is expected to open 18 points lower at 6,274

DAX 30 is expected to open 67 points lower at 12,863

CAC 40 is expected to open 19 points lower at 5,089

By David Madden (Market Analyst at CMC Markets UK)

Europe Set for Negative Start, US-China Tensions Rise, US Tech Giants Fell

Pfizer and BioNTech are working on four drugs that they are hoping will go on to be coronavirus vaccines, and the FDA put two of the four on a fast track for approval. At the back end of last week, BioNTech said they could receive approval as early as Christmas, but in light of yesterday’s news, it might even be sooner.

European equities closed higher and US stocks got off to a good start on the back of the news. The FDA update carried on nicely from Friday’s news that Remdesivir, the antiviral drug produced by Gilead Sciences, can reduce the fatality rate in coronavirus sufferers by 62%. In the past couple of trading sessions there was a feeling that big pharma stands a chance of taking on the virus.

That being said, many countries are still battling against Covid-19. There were in excess of 60,000 new cases yesterday in the US, while there were 312 deaths. The infection rate remains high, but at least the fatality rate is relatively low. The situation in Florida is getting worse as the growth in the number of new cases was 4.7%, while the seven day average was 4.4%.

Robert Kaplan, the head of the Federal Reserve Bank of Dallas, issued a mixed statement yesterday. The central banker expressed concerns in relation to the infection rate, and he said the Fed might be required to do more should assistance be needed. Mr Kaplan also said the Fed might row back on its stimulus packages should the economy improve.

The NASDAQ 100 set a fresh record high yesterday, a few hours into the trading session. The bullish run didn’t last long as the tech focused index finished down more than 2%, and the S&P 500 closed down nearly 1%. The usual suspects – Apple, Amazon, Netflix, Facebook and Google’s parent, Alphabet – all set all-time highs, but finished lower.

US earnings season will kick-off today as the latest quarterly numbers from JPMorgan, Wells Fargo and Citigroup will be posted. In April, the major banks collectively put aside more than $25 billion for provision for bad debts, the view is that the rate of loan defaults will surge on account of the pandemic.

Last month, the Fed carried out a stress test, and in one extreme scenario, the central bank cautioned that total bad debts provisions could be $700 billion. Dividends will be in focus as the Fed said that pay-outs must be capped at current rates, and there has been speculation that dividends could be cut in an effort to conserve cash.

It was a mixed day for commodities yesterday. The slide in the US dollar helped gold. Silver, copper and palladium were also helped by the move in the greenback, and the overall feel-good factor helped the industrial metals too. Oil on the other hand lost ground as there was talk that OPEC+ are looking to taper off the steep production cuts that were introduced in May. Last month WTI and Brent crude hit three month highs, but they failed to retest those levels since, because of the pausing of the reopening of economies.

Overnight, China posted its trade data for June. Imports were 2.7%, and economists were expecting -10%, keep in mind the May reading was -16.7%. Exports came in at 0.5%, and the consensus estimate was -1.5%, while the May reading was -3.3%. The rebound in imports and exports points to a turnaround in the global economy. It is possible the positive exports reading was largely because of Western government’s demand for personal protective equipment.

Rising tensions between the US and China in relation to Beijing’s territorial claims in the South China Sea has weighed on sentiment. Hong Kong is reintroducing tougher restrictions and a rise in coronavirus cases in Victoria, Australia, has impacted the mood too. Stocks in Asia are in the red, and European markets are called lower.

At 7am (UK time) the UK will release a number of economic reports. The GDP reading for May on an annual basis is tipped to be -20.4% and that would be an improvement on the -24.5% posted in April. The monthly reading is expected to be 5.5%, and keep in mind the April reading was -20.4%. UK industrial output, manufacturing output and construction output are expected to be 6%, 8% and 14.5% respectively.

At the same time, the final reading of German CPI for June will be posted and the consensus estimate is 0.8%.

The German ZEW economic sentiment report for July is tipped to be 60, and that would be a dip from the 63.4 recorded in June. It will be released at 10am (UK time).

Eurozone industrial production will be announced at 10am (UK time) and the May reading on a monthly basis is tipped to be 15%, and that would be a huge rebound from the -17.1% posted in April.

US headline CPI is expected to rebound to 0.6% from 0.1% in May. The core reading is tipped to be 1.1% and that would be a fall from the 1.2% that was posted in May.

EUR/USD – since late June it has been in an uptrend, and a break above the 1.1400 zone might put 1.1495 on the radar. A break below the 1.1168 area might pave the way for 1.1049, the 200-day moving average, to be targeted.

GBP/USD – has been in an uptrend recently, and should the positive move continue, it might target 1.2690, the 200-day moving average. A move through that level should put 1.2813 on the radar. Thursday’s candle has the potential to be a gravestone doji, and a move lower could see it target 1.2432, the 100 day moving average. A drop below 1.2251, might bring 1.2076 into play.

EUR/GBP – yesterday’s daily candle has the potential to be a bullish reversal, and if it moves higher it could see it target 0.9067 or 0.9239. A break below the 50-day moving average at 0.8949, could put the 0.8800 zone on the radar.

USD/JPY – has been drifting lower for the last month and support could come into play at 106.00. A rebound might run into resistance at 108.37, the 200-day moving average.

FTSE 100 is expected to open 78 points lower at 6,098

DAX 30 is expected to open 239 points lower at 12,560

CAC 40 is expected to open 91 points lower at 4,965

By David Madden (Market Analyst at CMC Markets UK) 

Healthy Start for Europe, G4S Jumps

Even though the pandemic is getting worse, stocks in Asia drove higher and the feel-good factor spilled over to this part of the world. At the back end of last week, it was reported that Gilead Sciences’, Remdesivir – a potential treatment for Covid-19 – reduced the fatality rate in patients by 62%.

BioNTech, who is working with Pfizer on a potential vaccine for the coronavirus, said they are hoping to get approval for the drug by Christmas. It seems that optimism surrounding the drug stories has overshadowed the fact that yesterday was another record day in terms of new cases, according to the WHO.

Germany’s economy minister stated the country is over the worst of the economic pain and that there should be positive growth from the third quarter onwards. The update wasn’t exactly new news as there has been a significant rebound in services, manufacturing, and industrial production in recent months, but it’s nice to hear a positive message all the same.

The bullish mood has helped the tourism sector as Ryanair, easyJet, International Consolidated Airlines, Carnival and InterContinental Hotel Group are all higher. The dip in the oil market has helped the stocks. These companies have endured a rough ride recently as tourism is very sensitive to the perceptions about the health crisis.

G4S shares are in demand this morning as the company predicts that first half earnings will significantly top analysts’ forecasts. The interim results will be brought forward to the week commencing the 20th July. The consensus estimate is for profit before interest, tax and amortisation of £159 million. Keep in mind the metric last year was £212 million.

Big Yellow Group, the self-storage facility company, acquired a site in Wapping, London, for £18.6 million. The site is adjacent to one of its existing facilities, and the group is hoping to have a 125,000 square foot self-storage facility and 150 residential units across both sites. The fact the company is expanding its operation amid a pandemic, suggests that it is confident in its outlook.

The aviation industry has been rocked by the health crisis, but that hasn’t stopped Wizz Air from expanding its business. Today, the low-cost airline confirmed that it will launch its Abu Dhabi operation on 1 October. The company recommenced flights in May, and in recent months it was quick to point out that it has one of the strongest balance sheets in the sector.

Oil is in the red as there is talk that Saudi Arabia are keen to lift output. In April, OPEC+ announced that it would be cutting production by 9.7 million barrels per day in the facing of falling demand. The record production cuts, combined with the reopening of economies helped oil hit a three month high last month. Now we are seeing some weakness in the energy market as there is chatter about reversing the steep production cuts.

Volatility in the currency market has been low. EUR/USD has been given a little lift by the continued weakness in the greenback. Sterling is lower versus the euro and the pound.

Gold, silver and copper have extended their gains from last week. The softer US dollar has assisted the metals.

Pepsi Co will be in focus today as it will release its second quarter figures. The first quarter update was well-received. EPS were $1.07, and that topped the $1.03 forecast. Revenue increased by 7.7% to $13.88 billion, while equity analysts were expecting $13.21 billion. The group benefited from people bulk buying soft drinks and snacks on the run-up to the lockdowns so that helped revenue. Not surprisingly, the guidance was pulled. The closure of bars, restaurants, cinemas, theatres, and sporting venues is likely to impact the second quarter numbers.

We are expecting the Dow Jones to open 107 points higher at 26,182, and the S&P 500 is called up 10 points at 3,195.

For a look at all of today’s economic events, check out our economic calendar.

By David Madden (Market Analyst at CMC Markets UK)

U.S. Stocks To Watch Today

Caterpillar

Caterpillar will report its first-quarter earnings results today, before the market open. This report is very interesting since Caterpillar is a great gauge of construction activity which may be hit hard due to cuts to capital spending all over the world.

Analysts expect that Caterpillar will report earnings of $1.67 per share and also predict that second-quarter earnings will dip to $0.69 per share. However, the company is expected to restore its earnings power by the fourth quarter.

Caterpillar shares are down about 20% year-to-date and their current price implies that the negative impact from coronavirus will be mostly a one-time event, and the company will soon return to business as usual.

In this light, the market will focus on management’s commentary as the risk of a prolonged downturn in the world construction activity is material.

Pfizer and Merck

Two healthcare giants will provide their first-quarter earnings reports today before the market open. Naturally, all big healthcare stocks are in spotlight during the coronavirus pandemic.

Pfizer is expected to report earnings of $0.71 per share, while Merck is expected to report earnings of $1.34 per share. The market will likely focus on commentary regarding the potential drugs and vaccine against COVID-19 but traders will also watch out for signs of dividend growth since both companies are solid dividend payers.

Advanced Micro Devices

AMD is one of the stocks which have performed very well during the current downturn and gained more than 20% of market capitalization since the beginning of this year.

AMD is trading just below its all-time highs, and a good earnings report can lead to a breakout to new levels and increased upside momentum. The company will report its earnings today after the market close.

Currently, analysts expect that AMD will report earnings of $0.18 per share and also expect continuation of earnings growth in the upcoming quarters. AMD is more expensive on a forward P/E basis than its competitor Intel since the market believes that AMD will increase its market share and expand its earnings power.

In case the first-quarter report confirms this consensus, AMD shares may have major upside, especially in case there’s no sell-off in the general market. I’d expect increased trading activity ahead of the report so AMD shares may be very volatile today.

Global Market Mixed As Traders Await FOMC, Italy Budget Passes, US Futures Up In Early Trading

Asian Equities Mixed As Traders Wait On The FOMC

Asian markets were mixed on Wednesday as traders wait on today’s much-anticipated FOMC policy statement. The statement is expected to bring another quarter-point rate hike but that is not what traders are wary of. Recent developments in US economic trends including a slow-down of inflation acceleration and comments from Jerome Powell have led the market to believe this may the last FOMC interest rate increase until late next year.

The CME’s Fedwatch Tool shows market odds are less than 50% for even one more rate hike after today’s if it comes. Some estimates have economic growth slowing over the next twelve months which has raised a chance, however slim, the Fed may lower rates at some point in the year.  

The Chinese Shang Hai Composite led declining indices with a loss of -1.05% while the Korean Kospi led advancing markets with a gain of 0.81%. The Nikkei and Australian ASX both closed with losses, -0.60% and -0.16%, while the Hong Kong-based Heng Seng index closed with a small gain.

Italian Budget Woes Are Over!

Italian budget woes are over, at least for now. The news was announced early this morning that lawmakers in the EU and Italy had reached an informal agreement on Italy’s proposed budget. The budget had been vetoed by the EU early last month on the grounds spending plans violated terms of an agreement made with Italy’s former government. The news, while good, is only one step forward in a country and economic bloc notorious for political upheavals, we haven’t heard the last about this.

Europe’s banking sector was among the top performers, up more than 0.5% at midday, as relief swept through the sector, spurred by the news from Italy. In the UK GlaxoSmithKline surged more than 6% on news it was splitting into two companies and forming a strategic alliance with Pfizer. The split will result in a prescription drug company and one focused on consumer products, which is where the deal with Pfizer was made.

US Futures Point To Rebound, Traders Cautious

US futures trading was pointing at a positive open on Wednesday morning as cautious traders eye the FOMC. The policy release is scheduled for later today and accompanied by new outlook and estimates, a new dot-plot, and a press conference with Jerome Powell. Needless to say, there will be a lot of market-moving information to be sure.

The Dow Industrials were leading in early market action with a gain near 0.70%. The broad market S&P 500 was trading within a few hundredths of that level and the tech-heavy NASDAQ Composite was not far behind. Today’s action is going to be driven in large part by the FOMC, don’t trust any moves until after the policy release and press conference.

What To Expect Ahead of A Busy Earnings Week?

Major U.S Benchmark indices finished the week on the red as investors reacted to mixed earnings reports. Alphabet Inc. (NASDAQ: GOOGL) and Amazon.com, Inc. (NASDAQ: AMZN) led the foray in beating earnings estimates as Facebook, Inc. (NASDAQ: FB) Imploded on missing estimates and providing guidance that fell short of expectations.

It yet again promises to be a busy week as a string of high profile companies is expected to post their quarterly earnings results.

Earnings Report expectations

Apple Inc. (NASDAQ: AAPL)

In the wake of Google and Amazon beating estimates, focus this week shifts towards Apple Inc. (NASDAQ: AAPL) given the amount of market cap it commands. The iPhone maker is to post its second earnings report after market close on July 31, 2018.  Analysts expect the company to post revenue of $61.14 billion representing a 15% year-over-year increase. Earnings per share, on the other hand, are projected at $2.16 a share.

Wall Street will also pay close attention to the number of iPhones the company sold in the second quarter, after a disappointing first quarter whereby unit sales rose by only 1.5 million. In the March quarter, service revenue rose 31% to $9.19 billion thereby helping the company beat sales and EPS expectations.

For the June quarter, Wall Street expects service revenue to come in at $9.21 billion representing a 21% increase. Investors will also pay close attention to other products sales made up of headphones, Apple TV Set-tops, as well as Apple Watch. Expectations are that the company will report a 34% increase in revenues in this segment at $3.68 billion.

Tesla Inc. (NASDAQ: TSLA)

Tesla Inc. (NASDAQ: TSLA) needs to post stellar second-quarter earnings report to avert a further implosion of the stock. After initially rising to highs of $373 a share, the stock has come down tumbling to below the $300 share mark.

Tesla reports on August 1, 2018, having achieved a significant milestone in the production of 5,000 Model 3s, a week. However, the company is expected to report a net loss of $3.49 a share. Investors will focus their attention on the number of Model 3 units the company delivered in the quarter.

The expectation is high that the company did deliver 10,000 more units in Q2 compared to Q1. Revenue, on the other hand, is expected at $4 billion on the sale of the additional cars. Attention will also be on the company’s expenditure, a headwind that has clobbered the company for years preventing it from turning in a profit.

Q3 Guidance will also have to come overboard to prevent further slide of the stock. Given that the company has hit 5,000 a week production milestone investors expect the company to provide a pathway to profitability in Q3.

Caterpillar Inc. (NYSE: CAT)

Caterpillar Inc. (NYSE: CAT) will report its earnings report on July 30, 2018, before the earnings bell. After delivering a 120% year-over-year improvement in earnings in Q1, expectations are high that the trajectory continued in Q2.  Investors expect the company to report a 22% increase in total sales, projected at $13.8 billion.

Earnings per share, on the other hand, should tickle in at $2.66 a share, representing a 79% year-over-year increase. The earnings beat is what Caterpillar needs if the stock is to bounce back after underperforming the market in the first half of the year.

Loews Corporation (NYSE: L)

Just like Caterpillar, Loews Corporation (NYSE: L) is scheduled to report on July 30, 2018, before the market opens. In Q1, the company reported a 14% surprise earnings beat. Expectations are high that the company beat estimates in Q2 on the strong performance of its CAN financials and Loews Hotels units Consensus estimates indicate the company could post earnings of 0.73 cents a share representing 3.9% year-over-year decrease.

AK Steel Holding Corporation (NYSE: AKS)

AK Steel Holding Corporation (NYSE: AKS) will report earnings on July 30, 2018, with expectations high that the company will beat estimates. The stock has already broken out of a critical resistance level in the wake of other steel companies reporting stellar quarterly financial results.

The consensus forecast for the quarter is that the company will report earnings of 23 cents a share, an increase from 19 cents a share reported a year earlier. Steel stocks are expected to continue powering high, the sector has emerged as a bright spot in the economy.

Procter & Gamble Co (NYSE: PG)

The owner of blockbuster brands like Gillett Razors and Pampers Diapers, Procter & Gamble Co (NYSE: PG) is to report its fourth-quarter and full year financial results on July 31, 2018. At the start of the year, the company forecasted organic sales gains of 2.5% up from an initial estimate of 2%.

For the current quarter, Wall Street expects the company to report revenues of $16.55 billion. Full-year sales, on the other hand, are expected at $66.87 billion. Investors will also want to hear what the company is doing as part of its cost-cutting drive. Cost cuts are expected to allow the company to venture into other growth areas.

Pfizer Inc. (NYSE: PFE)

Pharmaceutical giant Pfizer Inc. (NYSE: PFE) is to report its second-quarter earnings report before market open on July 31, 2018. The focus will be on whether the company maintained the positive earning streak in the quarter, after a positive earnings surprise of 4.05% in Q1.

Consensus estimates indicate the company could report EPS of $0.74 a share on revenues of $13.31 billion.

DowDuPont Inc. (NYSE: DWDP)

DowDuPont Inc. (NYSE: DWDP) is to report its recent quarterly earnings on August 2, 2018, before market open. Last year same quarter, the company reported earnings per share of $1.12, beating analyst’s expectations of $1.1 share. For the current quarter, investors expect the company to post EPS of $1.3 a share. Revenues, on the other hand, should come in at $23.6 billion.

Baidu Inc. (ADR) (NASDAQ: BIDU)

Investor’s sentiments are high on Chinese internet giant Baidu Inc. (ADR) (NASDAQ: BIDU) posting impressive quarterly results after the market close on July 31, 2018. Consensus estimates indicate the company could post a 30.2% year over year increase in sales that could come in at $4.01 billion. For the full year, the search giant is expected to post sales of $16.09 billion. Analysts expect the company to issue a sales guidance of $19.46 billion for next year.

Sprint Corp (NYSE: S)

Sprint Corp (NYSE: S) is to report its Q1 financial results on July 30, 2018. Wall Street expects the company to report earnings per share of $0.01 a share compared to $0.05 reported last year. Total revenue is poised to decline 0.7% year over year to $8.1 billion.

Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA)

Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA) is to report on its recent quarterly earnings report before the market opens on August 2nd, 2018. The expectation is high that the company will post sales of $4.75 billion down from $5.69 billion reported last year. Earnings per share, on the other hand, should come in at $0.67 a share.

Shake Shack Inc. (NYSE: SHAK)

Shake Shack Inc. (NYSE: SHAK) is expected to post sales of $110.20 million for the recent quarter after market close on August 2, 2018. Earnings per share are expected at $0.17 a share. The company is also expected to maintain full-year sales estimates of $451.32 million.

Kraft Heinz Co (NASDAQ: KHC)

Kraft Heinz Co (NASDAQ: KHC) will report earnings before markets open on August 3, 2018. Investors expect the company to post EPS of $0.92 a share up from $0.89 a share reported in the previous quarter. Revenue, on the other hand, is expected at $6.59 billion.