USD/CAD: Loonie Dips After Early Gains But Set to End Week Strong

The Canadian dollar pared early gains against its U.S. counterpart on Friday as crude oil prices marched higher and the greenback recovered after U.S. consumer spending outpaced expectations in June.

Today, the dollar to loonie conversion rose to 1.2472, up from Thursday’s close of 1.2444. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened about 0.5% so far this month. Although, the loonie is set to close this week with a gain

“The CAD has extended its rebound this week, even if gains came more as a reflection of a generally softer USD. Commodity prices strengthened broadly, driving the Bloomberg Commodity Index to a new cycle and six-year high Thursday while US-Canada 2Y spreads remain at a CAD-supportive –26bps. Our fair value models continue to reflect a significant USD overvaluation against the CAD (and a broadly overvalued USD against its major currency peers), although CAD-drivers have turned even more positive this week and our FV estimate has edged to a new cycle low below 1.17,” noted Shaun Osborne Chief FX Strategist at Scotiabank.

“It remains to be seen how far the USD will correct lower, however. We think the Fed has put the market on notice that taper timing is a live debate now among policymakers, which may provide the USD with general support in the coming weeks. Speculative FX traders have largely abandoned short USD positions in recent weeks and heightened equity market volatility—something of a “tradition” in August—will tend to work against the CAD and may lift USDCAD towards the upper reaches of our estimated range for next week (1.2508).”

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.3% higher at 92.145 at the time of writing. Still, it hovers close to this month’s low of 91.782.

The dollar stalled its rally after the Fed in its Wednesday’s monetary policy decision highlighted that the interest rate hike is far away. The U.S. central bank also did not give any hint about reducing its purchases of government bonds.

“In the final week of the Olympics, we think the dollar will at least be able to stabilise after the recent correction. The prospect of the Fed’s tapering should be cemented by good payrolls, while global risk assets may still struggle to look past China’s regulatory clampdown. Elsewhere, the BoE and RBA should not deliver any new guidance,” noted analysts at ING.

However, the risk that the world’s dominant reserve currency, the USD, recovery over the coming year is high, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

Canada is the world’s fourth-largest exporter of oil, which edged higher on tight supply and rising demand. High oil prices lead to higher U.S. dollar earnings for Canadian exporters, resulting in an increased value of the loonie. U.S. West Texas Intermediate (WTI) crude futures was trading around $73.51 a barrel.

Ferrari’s Revenue to More Than Double in Q2; Target Price $238

The luxury sports car maker Ferrari is expected to report earnings of $1.26 per share for the second quarter, representing a 3,050% increase over $0.04 per share a year earlier.

The company, known for its prancing horse logo, would post revenue growth of over 107% to around $1.3 billion. According to ZACKS Research, the company has beaten earnings per share (EPS) estimates in three of the last four quarters.

The U.S. listed Ferrari shares have slumped about 6% so far this year. The stock closed 1.88% higher at $216.21 on Thursday.

Analyst Comments

“Growth potential and strong execution. Global shipments of >11k units in 2021, growing at a 9.1% CAGR to 2030 ending at ~22k shipments. Adj. EBITDA margins rise to 35% in 2021 on improved mix and pricing after launching 5 new models in 2020 and 2 in 2021,” noted Adam Jonas, equity analyst at Morgan Stanley.

Ferrari trades at a justified premium to luxury brands, in line with luxury leader, Hermes, albeit with more opportunity to grow organically via: new customers, new segments and geographically in China & Asia-Pac, as well as exhibiting a unique moat with a world-renowned brand and a 12+ month customer order book.”

Ferrari Stock Price Forecast

Nine analysts who offered stock ratings for Ferrari in the last three months forecast the average price in 12 months of $238.63 with a high forecast of $281.00 and a low forecast of $202.00.

The average price target represents a 10.35% change from the last price of $216.24. From those nine analysts, four rated “Buy”, four rated “Hold” and one rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $265 with a high of $350 under a bull scenario and $160 under the worst-case scenario. The firm gave an “Overweight” rating on the luxury automaker’s stock.

Several other analysts have also updated their stock outlook. BofA slashed the price objective to $281 from $287. UBS Group cut their price objective to $238 from $247 and set a buy rating.

USD/CAD: U.S. Dollar Weakness Pushes Loonie to Two-Week High; Volatility To Last

The Canadian dollar rose against its U.S. counterpart on Thursday as the U.S. dollar tumbled to a month low after the Federal Reserve reiterated that the interest rate will remain zero for a long time.

Today, the dollar to loonie conversion fell to 1.2447, from 1.2527 on Wednesday. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened about 0.6% so far this month.

“Canada’s headline inflation faced a slowdown (from 3.6% to 3.1% YoY) in June. That is probably a welcome development by the Bank of Canada as it supports the central bank’s view that inflation spikes will have a transitory nature. That said, it will hardly impact the BoC’s tapering plans, in our view. After all, the jobs market has proven to be very strong in the recovery and core inflation was broadly unchanged (and above target) from May to June,” noted Petr Krpata, Chief EMEA FX and IR Strategist at ING.

“We remain of the view that the BoC will end asset purchases by the end of 2021 and that the case for the first hike in 2022 is getting stronger. From an FX perspective, we think that the central bank’s hawkishness can help CAD outperform once market sentiment improves and investors find fresh interest in entering reflationary/carry trades.”

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, hit this month’s low of 91.910 and was trading 0.42% lower at 91.934 at the time of writing.

Following the Fed’s monetary policy announcement on Wednesday, the dollar lost momentum after it noted that a rate hike in the near future is unlikely. No hints were given by the U.S. central bank about reducing its purchases of government bonds.

“In terms of the dollar, the currency was slightly softer following the meeting. This suggests currency watchers may have been expecting somewhat stronger guidance from the Fed on the ‘tapering’ issue,” noted analysts at AIB.

“As the European session gets underway this morning, the modestly softer dollar tone is reflected in EUR/USD trading up at the midpoint of $1.18-1.19, while GBP/USD has regained some ground in $1.39 territory. Elsewhere, EUR/GBP remains pinned down near to the 85p mark.”

Nevertheless, the USD is at high risk of recovering over the next year. This is partially due to expectations of two rate hikes in 2023 by the Fed. A stronger dollar and growing odds of the Fed tightening monetary policy sooner than expected would push the USD/CAD pair higher.

Oil prices in Canada have edged higher amid hopes of an inventory report that is expected to be bullish. Higher oil prices result in increased U.S. dollar earnings for Canadian exporters, which translate to a stronger loonie. U.S. West Texas Intermediate (WTI) crude futures traded higher by 0.67 cents, or 0.94%, to $73.06 a barrel.

Exxon Mobil’s Revenue to Nearly Double in Q2; Target Price $68

Exxon Mobil, an American multinational oil and gas entity, is expected to report its second-quarter earnings of $1.0 per share, which represents year-over-year growth of over 240%, up from a loss of $0.70 per share seen in the same quarter a year ago.

The U.S. largest publicly traded oil company would post revenue growth of over 90% to around $63 billion. The company has beaten earnings per share (EPS) estimates in three of the last four quarters.

Exxon Mobil shares have surged more than 40% so far this year.

Analyst Comments

“The shares of Exxon Mobil have observed a 10% decline in the past month as benchmark prices declined due to the easing of production curtailments by OPEC. The company is committed to maintaining a strong balance sheet and returning capital to shareholders in the coming years. Despite an uncertain demand-supply environment, the company’s second-quarter results are likely to benefit from high benchmark prices, assisting deleveraging plans. The second-quarter revenues are likely to grow by around 100% (y-o-y) resulting in strong earnings expansion over last year’s depressed number,” noted analysts at Trefis.

Exxon Mobil Stock Price Forecast

Sixteen analysts who offered stock ratings for Exxon Mobil in the last three months forecast the average price in 12 months of $68.73 with a high forecast of $90.00 and a low forecast of $55.00.

The average price target represents an 18.05% change from the last price of $58.22. From those 16 analysts, seven rated “Buy”, eight rated “Hold” and one rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $84 with a high of $100 under a bull scenario and $41 under the worst-case scenario. The firm gave an “Overweight” rating on the oil and gas company’s stock.

“Improving FCF outlook and dividend sustainability. With a more constructive commodity price outlook, lower capital spending, and additional cash operating cost savings, the dividend is covered in 2021 and averages >100% over the next 5-years on our estimates. Improving dividend sustainability supports yield compression for Exxon Mobil (XOM) relative to CVX,” noted Devin McDermott, equity analyst at Morgan Stanley.

“Cost cuts defend the dividend. Exxon Mobil (XOM) reduced 2022-25 spending plans to $20-25 B from $30-35 B, improving dividend sustainability while limiting further pull on the balance sheet. Additionally, XOM is targeting $6 B in structural operating cost reductions which should put upward pressure on consensus FCF estimates.”

Several other analysts have also updated their stock outlook. Piper Sandler raised the target price to $69 from $63. Independent Research upped the price objective to $56.00 from $55.00. Jefferies lifted the stock price forecast to $58 from $55.

Check out FX Empire’s earnings calendar

USD/CAD: Loonie Gains on Rising Oil Prices; Fed Decision in Focus

Canada’s dollar gained against the U.S. counterpart on Wednesday as stocks gained and oil prices recovered, but currency traders are awaiting the Fed decision due later in the day, as an unexpected hawkish announcement would boost the greenback.

The dollar to loonie conversion fell to 1.2556 against the U.S. currency, down from Tuesday’s close of 1.26. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 1.51% so far this month.

Canada is the world’s fourth-largest exporter of oil, which edged higher on hopes of a bullish inventory report. Increasing oil prices result in higher U.S. dollar earnings for Canadian exporters, which results in a stronger loonie. U.S. West Texas Intermediate (WTI) crude futures traded higher by 0.52 cents, or 0.74%, to $72.16 a barrel.

But the gains were capped by Canada’s June inflation data, which slowed to 3.1% from 3.6% in May.

“Following the BoC’s taper at the July meeting, Citi Research’s base case is for another tapering in October, with net-zero purchases by year-end and BoC to commence rate hikes in 2022. USDCAD is trading below a good resistance range at 1.2647-53 (March and April 2021 highs). If this continues, the next support level to watch will be a rising trend line currently standing at 1.2457,” noted analysts at Citi.

“Both fundamentals and technical therefore continue to support the “buy CAD on dips” sentiment not only versus USD but also against low yielders (EUR, JPY and CHF) and AUD (that continues to face extended lockdown risks).”

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.23% higher at 92.642 – not far from this year’s high of 93.437.

The U.S. Federal Reserve is due to make an interest rate decision on Wednesday. Traders remain cautious ahead of the policy decision as any unexpected hawkish surprise would lift the greenback. However, most economists believe this to be a non-event.

“We see a meaningful possibility that today’s Fed announcement will be a non-event, with the spread of the Delta Variant offering a reason for the FOMC to postpone more serious tapering communication until Jackson Hole. If anything, the balance of risks for the dollar appears tilted to the upside, also thanks to the China-related risk-off environment,” noted analysts at ING.

However, the risk that the world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

Amazon Stock Poised to Hit Fresh Highs After Strong Q2 Earnings; Target Price $4,332

The e-commerce leader for physical and digital merchandise, Amazon, is expected to report its second-quarter earnings of $12.24 per share, which represents year-over-year growth of about 19% from $10.3 per share seen in the same quarter a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of about 29% to around $115 billion. The company has always beaten earnings per share (EPS) estimates in the last four quarters.

Amazon’s better-than-expected results, which will be announced on Thursday, July 29, would help the stock hit new all-time highs. Amazon shares have surged more than 10% so far this year.

Analyst Comments

“We expect Amazon (AMZN) to beat the consensus estimates for revenues and earnings. The company has reported better than expected revenue and earnings figures in each of the last four quarters. In the past year, due to the pandemic, people turned to e-commerce and online marketplaces for their day to day needs which converted into a high growth in revenue for the company,” noted analysts at Trefis.

“The momentum continued in Q1 2021 as revenue grew by 44% for the quarter. The company also continues its expansion into different segments. Our forecast indicates that Amazon’s valuation is $4241 per share, which is 15% above the current market price of $3703.”

Amazon Stock Price Forecast

Thirty-two analysts who offered stock ratings for Amazon in the last three months forecast the average price in 12 months of $4,332.90 with a high forecast of $5,500.00 and a low forecast of $3,775.00.

The average price target represents a 19.48% change from the last price of $3,626.39. All of those 32 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $4,500 with a high of $5,300 under a bull scenario and $2,700 under the worst-case scenario. The firm gave an “Overweight” rating on the e-commerce leader’s stock.

Amazon’s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest (last-mile delivery, fulfillment, Prime Now, Fresh, Prime digital content, Alexa/Echo, India, AWS, etc). Amazon Prime membership growth drives recurring revenue and a positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through,” noted analysts at Morgan Stanley.

Several other analysts have also updated their stock outlook. BofA lowered the price objective to $4350 from $4360. Credit Suisse raised the target price to $4850 from $4000. Bernstein lifted the target price to $4200 from $4000.

Check out FX Empire’s earnings calendar

USD/CAD: Loonie Falls Against U.S. Dollar; Investors Eye Fed Decision

The Canadian dollar weakened against its U.S. counterpart on Tuesday as investors moved to the safety of the U.S. dollar; however, it will likely remain volatile ahead of the Fed monetary policy decision on Wednesday.

Today’s dollar to loonie conversion rose to 1.2594 against the U.S. currency, up from Monday’s close of 1.254. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 1.5% so far this month.

“With the BoC on track to end asset purchases by year-end, we continue to see CAD as a potential outperformer in G10 in the coming months. The more balanced positioning could also favour the recovery in CAD,” noted analysts at ING.

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.3% lower at 92.373 – not far from this year’s high of 93.437.

The U.S. Federal Reserve is due to make an interest rate decision on Wednesday. Traders remain cautious ahead of the policy decision as any unexpected hawkish surprise would lift the greenback.

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

“Attention turns to the July 28th FOMC meeting where we expect taper decisions to be discussed with a formal set of normalization plans released in the Minutes. Such a signal may lead to further moderate tactical gains in DXY to horizontal resistance at 92.85 and perhaps even to pivotal resistance at 93.44 before reversing as fundamentals remain USD negative,” noted analysts at Citibank.

“With the Fed still buying assets unabated, risk sentiment should remain relatively well supported, leading to relative resilience of risk/ high beta FX (Commodity Bloc, Asia EMFX – CNH, SGD and GBP) against low yielders (EUR, JPY, CHF). Overall, levels above 92.50 in DXY still look tough to sustain medium-term while the 90.5 – 91.0 area looks tough to break on the downside leading into the meeting.”

Canada is the world’s fourth-largest exporter of oil, edged lower on surging COVID-19 cases cast a shadow on demand. U.S. West Texas Intermediate (WTI) crude futures traded lower by 0.3 cents, or 0.40%, to $71.61 a barrel.

“The USD remains generally overvalued against its major currency peers, our modelling work suggests, and USD/CAD’s overvaluation, which has been evident in our work for some time, remains intact. This suggests that the USD should edge back somewhat in the near-to-medium term to reconnect with what remains a clearly CAD-supportive backdrop,” noted Shaun Osborne, Chief FX Strategist at Scotiabank.

Microsoft Could Hit New All-Time High on Strong Q4 Earnings; Target Price $308

The Redmond, Washington-based global technology giant, Microsoft, is expected to post its fiscal fourth-quarter earnings of $1.91 per share, which represents year-over-year growth of over 30% from $1.46 per share seen in the same quarter a year ago.

The world’s largest software maker would post revenue growth of over 15% to around $44.1 billion, up from the $38.03 billion a year earlier. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 15%.

Microsoft’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Microsoft shares have surged more than 30% so far this year.

Analyst Comments

“Channel work and our CIO survey point to building momentum across the Cloud, Hybrid and On-premises portfolio, which should power a solid Q4. While investors seek reassurances margin expansion continues into FY22, our model suggests durable high-teens EPS growth and upside in the shares,” noted Keith Weiss, equity analyst at Morgan Stanley.

“Strong positioning for public cloud adoption, large distribution channels and installed customer base, and improving margins support a path well beyond $1T mkt cap. Durable double-digit NT rev growth is supported by Azure (winning in public cloud), data center (share gains and positive pricing trends), O365 (base growth and ARPU uplift) and LinkedIn. GM % improvement, continued opex discipline and strong capital return lead to durable teens total return profile. At ~29x CY22e GAAP EPS, Microsoft (MSFT) trades at a premium to the S&P, warranted due to MSFT’s premium return profile. Multiple expansion will likely come from gaining comfort in the durability of commercial business gross profit dollars.”

Microsoft Stock Price Forecast

Twenty-five analysts who offered stock ratings for Microsoft in the last three months forecast the average price in 12 months of $308.65 with a high forecast of $378.00 and a low forecast of $270.00.

The average price target represents a 6.78% change from the last price of $289.05. All of those 25 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $300 with a high of $380 under a bull scenario and $195 under the worst-case scenario. The firm gave an “Overweight” rating on the global technology giant’s stock.

Several other analysts have also updated their stock outlook. Microsoft had its target price lifted by Barclays to $325 from $288. The brokerage currently has an overweight rating on the software giant’s stock. Citigroup reissued a buy rating and issued a $378.00 price target. Jefferies Financial Group lifted their price target to $310 from $290 and gave the company a buy rating.

Microsoft’s (MSFT) been a significant outperformer YTD, up 30% vs software index up 15% (IGV), setting the bar slightly higher for MSFT shares going into the F4Q print. F4Q expectations are achievable, supported by MSFT’s diverse portfolio including Azure and Teams driving up selling. Key items to watch are FY22 margin pressure, elevated expectations and more color on recent M&A and broader aspirations. Maintain Buy, Raise PT to $335,” noted Brent Thill, equity analyst at Jefferies.

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USD/CAD: Loonie Gains as U.S. Dollar Retreats, Likely to Remain Volatile Ahead of Fed Meeting

The Canadian dollar strengthened against the U.S. dollar in early trade Monday as weaker greenback supported the commodity currency; however, it will likely remain volatile ahead of the Fed monetary policy decision this week.

The dollar to loonie conversion today fell to 1.2523 against the U.S. currency, down from Friday’s close of 1.2561. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 1.4% so far this month.

“With respect to the Canadian dollar, recent price action has reflected risk-off sentiment and investors flocking into USD assets. Additionally, global growth fears are putting pressure on commodity prices, that have eased back from recent peaks despite remaining at fairly elevated levels. This leaves CAD trading close to our 80 U.S. cent estimate of fair value,” noted Beata Caranci, SVP & Chief Economist at TD Economics.

“In the near term, movements in the Canadian dollar will likely be tied to movements in risk-sentiment. If financial markets gain comfort that the Delta variant won’t upend the global economy, a rise in risk sentiment would maintain a floor under CAD and offer some modest upside.”

Canada is the world’s fourth-largest exporter of oil, edged lower on surging COVID-19 cases cast a shadow on global demand. U.S. West Texas Intermediate (WTI) crude futures traded lower by 0.33 cents, or 0.43%, to $71.75 a barrel.

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.38% lower at 92.561 – not far from this year’s high of 93.437.

The U.S. Federal Reserve is due to make an interest rate decision on Wednesday. Traders remain cautious ahead of the policy decision as any unexpected hawkish surprise would lift the greenback.

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

Alphabet Could Scale to Fresh Record High on Upbeat Q2 Earnings; Target Price $3,000

The parent of Google and the world’s largest search engine that dominates internet search activity globally, Alphabet, is expected to report its second-quarter earnings of $19.33 per share, which represents year-over-year growth of about 90% from $10.13 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 45% to around $56.16 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 43% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Alphabet shares surged more than 50% so far this year. On Friday, the stock closed at a fresh record high at $2,660.30, up 3.57%.

Analyst Comments

Alphabet dominates the online search market with Google’s global share above 80%, via which it generates strong revenue growth and cash flow. We expect continuing growth in the firm’s cash flow, as we remain confident that Google will maintain its leadership in the search market. We foresee YouTube contributing more to the firm’s top and bottom lines, and we view investments of some of that cash in moonshots as attractive. Whether they will generate positive returns remains to be seen, but they do present significant upside,” noted Ali Mogharabi, Senior Equity Analyst at Morningstar.

“Our fair value estimate is $2,925 per share, equivalent to a 2021 enterprise value/EBITDA ratio of 21. We expect revenue growth to accelerate in 2021 as the economy recovers from the COVID-19 pandemic, helped by greater revenue contribution from YouTube and cloud and the acquisition of Fitbit. While new offerings will pressure gross margin, we look for operating leverage improvement during the next five years. Our model represents a five-year compound annual growth rate of nearly 19% for total revenue and a five-year average operating margin of 26%.”

Alphabet Stock Price Forecast

Eleven analysts who offered stock ratings for Alphabet in the last three months forecast the average price in 12 months of $2,743.00 with a high forecast of $2,900.00 and a low forecast of $2,510.00. The average price target represents a -0.48% change from the last price of $2,756.32. All of those 11 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $2,575 with a high of $3,060 under a bull scenario and $1,800 under the worst-case scenario. The firm gave an “Overweight” rating on the internet giant’s stock.

Google Websites growth is likely to rebound in ’21 as we believe there are several underappreciated products driven by mobile search, strong YouTube contribution, and continued innovation, such as Maps monetization. Continued expense discipline leads to operating leverage and upward revisions on EPS estimates,” noted Brian Nowak, equity analyst at Morgan Stanley.

Several other analysts have also updated their stock outlook. Alphabet had its price objective hoisted by stock analysts at Credit Suisse to $3,350 from $2,755. The brokerage currently has an “outperform” rating on the information services provider’s stock.

Barclays boosted their target price to $3,000 from $2,500 and gave the stock an “overweight” rating. Susquehanna Bancshares lifted their price target to $3,100 from $3,000 and gave the stock a “positive” rating.

Check out FX Empire’s earnings calendar

Monstrous Earnings Week Ahead: Tesla, Google, Microsoft, Apple, Facebook and Amazon in Focus

Earnings Calendar For The Week Of July 26

Monday (July 26)

IN THE SPOTLIGHT: TESLA, LOCKHEED MARTIN

TESLA: The California-based electric vehicle and clean energy company is expected to report its second-quarter earnings of $0.94 per share, which represents year-over-year growth of over 113% from $0.44 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer would post revenue growth of about 90% to around $11.4 billion. The electric vehicle producer has beaten earnings three times in the last four quarters.

“A double-fly-wheel. We believe Tesla can leverage its cost leadership in EVs to aggressively expand its user base, over time generating a higher % of revenue from recurring/high-margin services revenue. Services drives the upside. We forecast Tesla’s network services EBITDA as a % of total TSLA EBITDA to reach 11% by 2025, ~18% by 2030 and ~35% by 2040. Tesla Service revenue includes automated driving, infotainment, upgrades, supercharging, maintenance, telematics, etc,” noted Adam Jonas, equity analyst at Morgan Stanley.

“Valuation supportive vs. tech. Including Network Services, Energy & Insurance to our core auto fcst, at $900 Tesla trades at ~29x EV/EBITDA in 2025 and ~6x 2025 sales. Expensive vs. auto but not vs. software/tech comps.”

LOCKHEED MARTIN: The Bethesda, Maryland-based global security and aerospace company is expected to report its second-quarter earnings of $6.53 per share, which represents year-over-year growth of about 13% from $5.79 per share seen in the same quarter a year ago.

The world’s largest defense contractor would post revenue growth of over 4% to around $16.9 billion. It is worth noting that the aerospace company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 26

Ticker Company EPS Forecast
PSON Pearson £8.40
LMT Lockheed Martin $6.53
PHG Koninklijke Philips $0.47
CHKP Check Point Software Technologies $1.56
LII Lennox International $4.39
RPM RPM International $1.26
BOH Bank of Hawaii $1.31
DORM Dorman Products $1.04
TSLA Tesla $0.94
KOF Coca Cola Femsa Sab De Cv $14.53
ARE Alexandria Real Estate Equities $0.62
AMP Ameriprise Financial $5.20
SUI Sun Communities $0.57
BRO Brown & Brown $0.40
UHS Universal Health Services $2.69
PKG Packaging Of America $1.77
FFIV F5 Networks $2.46
AGNC American Capital Agency $0.65
ACC American Campus Communities -$0.07
AMKR Amkor Technology $0.45
CR Crane $1.39
ADC Agree Realty $0.47
SSD Simpson Manufacturing $1.61
AXTA Axalta Coating Systems $0.46
TNET TriNet $0.81
HXL Hexcel $0.01
RRC Range Resources $0.25
PCH Potlatch $2.55
JJSF J&J Snack Foods $0.76
IBTX Independent Bank $1.31
CATY Cathay General Bancorp $0.83
AIN Albany International $0.73
CALX Calix $0.27
IBA Industrias Bachoco Sab De Cv $1.22
ARI Apollo Commercial Real Est Finance $0.36
PPERY PT Bank Mandiri Persero TBK $0.18
CDNS Cadence Design Systems $0.76
OTIS Otis Worldwide Corp $0.72
RYAAY Ryanair -$1.46
HAS Hasbro $0.48
WWD Woodward $0.98
ACKAY Arcelik ADR $0.46
GT Goodyear Tire & Rubber $0.16
TTM Tata Motors -$0.31
CBU Community Bank System $0.80
SANM Sanmina $0.91
BDN Brandywine Realty $0.01
FRME First Merchants $0.91

Tuesday (July 27)

IN THE SPOTLIGHT: GOOGLE (ALPHABET), MICROSOFT, APPLE

GOOGLE (ALPHABET): The parent of Google and the world’s largest search engine that dominates internet search activity globally is expected to report its second-quarter earnings of $19.33 per share, which represents year-over-year growth of about 90% from $10.13 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 45% to around $56.16 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 43% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Alphabet shares surged more than 50% so far this year. On Friday, the stock closed at a fresh record high at $2,660.30, up 3.57%.

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal fourth-quarter earnings of $1.91 per share, which represents year-over-year growth of over 30% from $1.46 per share seen in the same quarter a year ago. The world’s largest software maker would post revenue growth of over 15% to around $44.1 billion, up from the $38.03 billion a year earlier.

“Channel work and our CIO survey point to building momentum across the Cloud, Hybrid and On-premise portfolio, which should power a solid Q4. While investors seek reassurances margin expansion continues into FY22, our model suggests durable high-teens EPS growth and upside in the shares,” noted Keith Weiss, equity analyst at Morgan Stanley.

Microsoft’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Microsoft shares have surged more than 30% so far this year.

APPLE: The consumer electronics giant would post its fiscal third-quarter earnings of $1.01 per share, which represents year-over-year growth of over 55% from $0.65 per share seen in the same quarter a year ago.

The iPhone manufacturer would post revenue growth of over 20% to around $73.3 billion up from $59.69 billion a year earlier. It is worth noting that the company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 27

Ticker Company EPS Forecast
SIRI Sirius XM $0.07
IEX IDEX $1.62
PCAR PACCAR $1.40
MMM 3M $2.29
MSCI Msci $2.31
ENPH Enphase Energy $0.42
LSXMK Liberty Media SiriusXM C $0.36
LSXMA Liberty Media SiriusXM A $0.48
CVLT Commvault Systems $0.52
LOGI Logitech Internationalusa $0.90
MXIM Maxim Integrated Products $0.85
ST Sensata Technologies $0.88
CNC Centene $1.22
UPS United Parcel Service $2.79
TRU TransUnion $0.91
SHW Sherwin-Williams $2.67
IVZ Invesco $0.70
FELE Franklin Electric $0.80
LW Lamb Weston Holdings Inc $0.42
IQV IQVIA Holdings Inc $2.07
RTX Raytheon Technologies Corp $0.93
ENTG Entegris $0.79
LECO Lincoln Electric $1.48
FISV Fiserv $1.28
DTE DTE Energy $1.36
GE General Electric $0.03
ROK Rockwell Automation $2.09
WM Waste Management $1.19
SWK Stanley Black & Decker $2.88
ADM Archer-Daniels Midland $1.02
HUBB Hubbell $2.16
PNR Pentair Ordinary Share $0.79
BSX Boston Scientific $0.37
ECL Ecolab $1.21
PPBI Pacific Premier Bancorp $0.71
GPK Graphic Packaging $0.28
PHM PulteGroup $1.73
AWI Armstrong World Industries $1.05
RGEN Repligen $0.52
SFNC Simmons First National $0.52
SSTK Shutterstock $0.68
ABG Asbury Automotive $4.60
MPWR Monolithic Power Systems $1.69
CHRW C.H. Robinson Worldwide $1.33
MANH Manhattan Associates $0.43
GOOG Alphabet $19.33
CB Chubb $3.00
AMD Advanced Micro Devices $0.54
PGRE Paramount Group -$0.05
SBUX Starbucks $0.77
CAKE Cheesecake Factory $0.72
EGP EastGroup Properties $0.67
AXS Axis Capital $1.42
WSBC WesBanco $0.75
HIW Highwoods Properties $0.33
STAG STAG Industrial $0.12
VIST Vista Oil Gas $0.15
NAVI Navient $0.85
EHC Encompass Health Corp $0.98
OMAB Grupo Aeroportuario Del Centro Nort $11.31
NOV National Oilwell Varco -$0.13
V Visa $1.34
GOOGL Alphabet $19.24
BXP Boston Properties $0.57
AAT American Assets $0.11
MSFT Microsoft $1.91
JNPR Juniper Networks $0.39
BYD Boyd Gaming $0.90
MASI Masimo $0.90
MTDR Matador Resources $0.75
CSGP CoStar $0.23
FIBK First Interstate BancSystem $0.72
OLN Olin $1.44
EQR Equity Residential $0.19
EXR Extra Space Storage $1.06
EPR EPR Properties $0.06
USNA USANA Health Sciences $1.72
THG Hanover $2.38
UMBF UMB Financial $1.75
CHE Chemed $4.29
SYK Stryker $2.13
MDLZ Mondelez International $0.65
MAT Mattel -$0.06
PFG Principal Financial $1.52
AAPL Apple $1.01
TER Teradyne $1.75
VIV Telefonica Brasil $0.13
ASH Ashland $1.31
GLW Corning $0.51
PII Polaris Industries $2.15
JBLU JetBlue Airways -$0.74
RDY Drreddys Laboratories $0.55
XRX Xerox $0.40
CIT CIT $0.86
SID Companhia Siderurgica Nacional $0.86
RNST Renasant $0.77

Wednesday (July 28)

IN THE SPOTLIGHT: FACEBOOK

The world’s largest online social network is expected to report its second-quarter earnings of $3.04 per share, which represents year-over-year growth of about 70% from $1.80 per share seen in the same quarter a year ago. The Menlo Park, California-based social media conglomerate would post revenue growth of over 49% to around $28.0 billion.

“Monetization Potential: We are positive on FB’s monetization roll-out of Instagram as well as FB’s ability to continue to innovate and improve its monetization (Canvas Ads, Dynamic Ads, video). Combined with the high and growing engagement we see monetization upside going forward,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Investing from Position of Strength to Drive Faster Long-Term Growth: We are modeling ~33% GAAP opex (excl. one-time items) growth in 2021, implying an incremental ~$18bn in opex. Our base case model implies opex per employee moderates in ’21 while FB hiring remains roughly flat on an absolute basis. We believe FB will grow EPS at a ~39% CAGR (2019-2022).”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 28

Ticker Company EPS Forecast
PTC PTC $0.63
URI United Rentals $4.90
ENSG Ensign $0.88
ALKS ALKERMES $0.12
TYL Tyler Technologies $1.63
AMG Affiliated Managers $3.85
SF Stifel Financial $1.38
FIX Comfort Systems USA $0.91
MSA MSA Safety $1.04
CBD Companhia Brasileira De Distrib $0.04
ALGT Allegiant Travel $2.55
GD General Dynamics $2.55
HES Hess $0.11
PFE Pfizer $0.97
QCOM Qualcomm $1.68
HP Helmerich & Payne -$0.56
UMC United Microelectronics $0.14
BA Boeing -$0.81
EQIX Equinix $1.87
DB Deutsche Bank $0.33
RJF Raymond James Financial $2.27
SAN Banco Santander $0.13
HNP Huaneng Power International $0.86
LRCX Lam Research $7.59
APH Amphenol $0.55
EVR Evercore Partners $2.71
PPC Pilgrim’s Pride $0.52
R Ryder System $1.38
NSC Norfolk Southern $2.97
FORM FormFactor $0.33
SHOO Steven Madden $0.31
SCI Service International $0.67
ADP ADP $1.14
MNRO Monro Muffler Brake $0.52
SLAB Silicon Laboratories $0.93
BXMT Blackstone Mortgage $0.60
PAG Penske Automotive $2.76
ROL Rollins $0.18
BCS Barclays $0.54
CAJ Canon $0.33
XLNX Xilinx $0.78
HUM Humana $6.82
AVY Avery Dennison $2.05
NYCB New York Community Bancorp $0.30
SCL Stepan $1.84
GSK Glaxosmithkline $0.55
CME CME $1.61
TEVA Teva Pharmaceutical Industries $0.59
MCD McDonalds $2.11
BSBR Banco Santander Brasil $0.20
EXP Eagle Materials $2.07
DT Dynatrace Holdings $0.15
EEFT Euronet Worldwide $0.65
SPOT Spotify -$0.38
OC Owens Corning $2.14
FMX Fomento Economico Mexicano Sab $14.29
BMY Bristol-Myers Squibb $1.89
VRTS Virtus Investment Partners $8.11
GRMN Garmin $1.26
SIX Swiss Exchange -$0.22
CCJ Cameco USA -$0.05
TDY Teledyne Technologies $2.70
IART Integra LifeSciences $0.66
GNRC Generac $2.30
MCO Moody’s $2.77
VRT Veritas Pharma $0.24
EPD Enterprise Products Partners $0.50
GIB CGI Group USA $1.08
TMO Thermo Fisher Scientific $5.47
TEL TE Connectivity $1.58
SLGN Silgan $0.83
PB Prosperity Bancshares $1.39
ODFL Old Dominion Freight Line $2.17
BG Bunge $1.62
LFUS Littelfuse $2.24
CNMD CONMED $0.62
CP Canadian Pacific Railway USA $1.00
AVB AvalonBay Communities $0.74
ALGN Align Technology $2.52
AM Antero Midstream Partners $0.19
CNO CNO Financial Group $0.54
CINF Cincinnati Financial $0.99
SSNC SS&C Technologies $1.14
MTH Meritage Homes $3.28
TTEK Tetra Tech $0.88
MKSI MKS Instruments $2.95
ROIC Retail Opportunity Investments $0.06
SIGI Selective $1.23
VAC Marriottacations Worldwide $0.89
PDM Piedmont Office Realty $0.05
IRBT Irobot $0.32
UDR UDR $0.01
EXAS Exact Sciences -$0.75
MOH Molina Healthcare $3.39
EQT EQT $0.04
MXL MaxLinear $0.50
IR Ingersoll Rand $0.42
AGI Alamos Gold $0.11
MAA Mid-America Apartment Communities $0.55
KGC Kinross Gold USA $0.13
ESRT Empire State Realty -$0.01
BSMX Santander Mexico Fincl Gp Sab Decv $0.17
CRUS Cirrus Logic $0.39
MUSA Murphy USA $3.21
RE Everest Re $8.58
VALE Vale $1.47
DRE Duke Realty $0.19
PYPL PayPal $1.12
NOW ServiceNow $1.21
CCS Century Communities $2.84
NLY Annaly Capital Management $0.27
TROX Tronox $0.52
XPO XPO Logistics $1.66
SAVE Spirit Airlines -$0.86
PAC Grupo Aeroportuario Del Pacifico $1.14
CHX ChampionX Corp $0.10
NUVA NuVasive $0.44
FBHS Fortune Brands Home Security $1.39
NOVA Nova Mentis Life Science Corp -$0.24
FB Facebook $3.04
ACGL Arch Capital $0.84
CONE CyrusOne $0.04
AR Antero Resources $0.20
AEM Agnico Eagle Mines USA $0.59
RBC Regal Beloit Corporation $2.07
PEGA Pegasystems -$0.18
AFL Aflac $1.28
PKI PerkinElmer $2.44
CHDN Churchill Downs $2.51
PEB Pebblebrook Hotel -$0.65
CTSH Cognizant Technology Solutions $0.96
HOLX Hologic $1.12
KRC Kilroy Realty $0.29
ALSN Allison Transmission $0.93
F Ford Motor -$0.04
ASGN On Assignment $1.29
HIG Hartford Financial Services $1.34
ORLY O’Reilly Automotive $7.51
ISBC Investors Bancorp $0.31

Thursday (July 29)

IN THE SPOTLIGHT: AMAZON.COM

The eCommerce leader for physical and digital merchandise is expected to report its second-quarter earnings of $12.24 per share, which represents year-over-year growth of about 19% from $10.3 per share seen in the same quarter a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of about 29% to around $115 billion. The company has beaten earnings per share (EPS) estimates at all times in the last four quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 29

Ticker Company EPS Forecast
RLGY Realogy $1.08
VSTO Vista Outdoor $0.90
AGCO AGCO $2.20
PCG PG&E $0.28
MATX Matson $2.96
PRFT Perficient $0.79
NATI National Instruments $0.05
GPI Group 1 Automotive $7.59
CFX Colfax $0.53
CMS CMS Energy Corporation $0.46
LYG Lloyds Banking $0.14
MHK Mohawk Industries $3.59
EBS Emergent BioSolutions $1.41
TXT Textron $0.65
AUOTY AU Optronics $0.56
CMCSA Comcast $0.66
VLO Valero Energy $0.17
CG Carlyle $0.60
ABEV Ambev $0.02
NLSN Nielsen $0.36
MTD Mettler Toledo International $7.62
ADS Alliance Data Systems $3.68
FTNT Fortinet $0.88
FTV Fortive Corp $0.60
ASX Advanced Semiconductor Engineering $0.16
LKQ LKQ $0.75
ERJ Embraer -$0.26
TFX Teleflex $2.87
CARR Carrier Global Corp $0.55
CX Cemex Sab De Cv $0.16
ORAN Orange $0.18
CVE Cenovus Energy USA $0.26
MT Arcelormittal $2.52
MA Mastercard $1.74
KBR KBR $0.50
HOCPY Hoya Corp $0.85
YUM Yum Brands $0.96
EIX Edison International $1.02
EME EMCOR $1.58
AGIO Agios Pharmaceuticals -$1.35
KPELY Keppel Corporation $0.18
BUD Anheuser-Busch $0.87
CS Credit Suisse $0.22
DANOY Danone PK $0.45
SNY Sanofi $0.77
AZN Astrazeneca $0.45
TEF Telefonica $0.14
STM Stmicroelectronics $0.37
GRFS Grifolsbarcelona $0.26
THRM Gentherm $0.65
WWW Wolverine World Wide $0.49
CNX Consol Energy $0.24
CBRE CBRE Group Inc $0.77
TAP Molson Coors Brewing $1.35
VC Visteon $0.05
KEX Kirby $0.14
TREE LendingTree -$0.63
SAH Sonic Automotive $1.38
HSY Hershey $1.42
AMT American Tower $1.27
TW Towers Watson $0.39
OSK Oshkosh $2.25
MAS Masco $1.04
MO Altria $1.18
TROW T. Rowe Price $3.19
CTXS Citrix Systems $1.22
SPGI S&P Global Inc $3.26
BAX Baxter International $0.75
ICE Intercontinental Exchange $1.16
SO Southern Co. $0.79
NTCT Netscout Systems $0.18
GOL Gol Linhas Aereas Inteligentes -$0.91
CFR Cullen/Frost Bankers $1.56
CWT California Water Service $0.41
FSS Federal Signal $0.45
AER AerCap $1.37
COLB Columbia Banking System $0.66
COR CoreSite Realty $0.45
WEX WEX $1.95
TMHC Taylor Morrison Home $0.96
XEL Xcel Energy $0.56
FLEX Flextronics International $0.38
SAIA Saia $2.05
OSTK Overstock $0.67
IDA IdaCorp $1.21
FCN FTI Consulting $1.52
LAWS Lawson Products $0.60
WST West Pharmaceutical Services $1.74
MLM Martin Marietta Materials $3.85
MTSI MACOM Technology Solutions $0.53
LH Laboratory Of America $5.62
EXLS ExlService $1.01
BSAC Banco Santander Chile $0.50
AOS A.O. Smith $0.65
TPX Tempur Sealy International $0.56
HBAN Huntington Bancshares $0.32
WAB Westinghouse Air Brake Technologies $0.96
NOC Northrop Grumman $5.83
MMP Magellan Midstream Partners $1.02
HLT Hilton Worldwide $0.39
KDP Keurig Dr Pepper $0.37
OMCL Omnicell $0.82
BC Brunswick $2.14
MRK Merck & Co $1.40
TRP Transcanada USA $0.77
KIM Kimco Realty $0.12
IP International Paper $1.06
MDC MDC $1.99
PRLB Proto Labs $0.44
SGEN Seattle Genetics -$0.61
CPT Camden Property $0.34
SIMO Silicon Motion Technology $1.25
CUBE CubeSmart $0.21
DLB Dolby Laboratories $0.28
BIO Bio-Rad Laboratories $2.66
CC Chemours Co $0.94
ZEN Zendesk $0.16
FWRD Forward Air $0.97
AJG Arthur J. Gallagher $1.08
SPSC SPS Commerce $0.40
ROG Rogers $1.89
ERIE Erie Indemnity $1.51
CUZ Cousins Properties $0.20
WELL Welltower Inc $0.15
PTCT PTC Therapeutics -$1.81
AUY Yamana Gold USA $0.06
LPLA LPL Financial $1.67
WWE World Wrestling Entertainment $0.25
WRE Washington Real Estate Investment -$0.04
TXRH Texas Roadhouse $0.98
ATR AptarGroup $0.97
GLPI Gaming And Leisure Properties $0.57
OFC Orate Office Properties $0.14
RSG Republic Services $0.95
TEX Terex $0.60
X United States Steel $3.08
LBTYA Liberty Global Class A Ordinary Shares $0.46
KLAC KLA-Tencor $3.99
SWKS Skyworks Solutions $2.14
DXCM Dexcom $0.44
HUBG HUB $0.70
VCYT Veracyte -$0.25
POWI Power Integrations $0.75
LGND Ligand Pharmaceuticals $1.38
FHI Federated Hermes Inc $0.66
FSLR First Solar $0.55
CWST Casella Waste Systems $0.24
DLR Digital Realty $0.24
MTX Minerals Technologies $1.25
VRTX Vertex Pharmaceuticals $2.37
PFPT Proofpoint $0.49
ESS Essex Property $0.88
GILD Gilead Sciences $1.73
WERN Werner $0.87
MMSI Merit Medical Systems $0.45
LBTYK LIBERTY GLOBAL $0.46
AMZN Amazon $12.24
QGEN Qiagen $0.65
EW Edwards Lifesciences $0.55
NRZ New Residential Investment $0.31
MSTR Microstrategy $0.81
SM SM Energy -$0.26
SWN Southwestern Energy $0.21
TMUS T-Mobile Us $0.51
DECK Deckers Outdoor -$0.15
CORT Corcept Therapeutics $0.17
TWOU 2U -$0.16
SBH Sally Beauty $0.62
MPW Medical Properties $0.29
CACC Credit Acceptance $10.36
SJW SJW $0.64
SHEN Shenandoah Telecommunications $0.86
ES Eversource Energy $0.80
KMPR Kemper $1.33
WRI Weingarten Realty Investors $0.10
OPK Opko Health $0.02
SU Suncor Energy USA $0.39
APELY Alps Electric $0.11
ACI AltaGas Canada $0.69
EXPO Exponent $0.42

Friday (July 30)

Ticker Company EPS Forecast
KMTUY Komatsu $0.40
VFC VF $0.11
ABR Arbor Realty $0.42
PEXNY PTT Exploration & Production $0.16
LAZ Lazard $0.89
HRC Hill-Rom $1.35
XOM Exxon Mobil $1.00
COG Cabot Oil Gas $0.29
MFG Mizuho Financial $0.08
GCTAY Siemens Gamesa ADR $0.02
TU Telus USA $0.21
JCI Johnson Controls $0.83
CL Colgate-Palmolive $0.80
BAH Booz Allen Hamilton $0.97
TOTDY Toto $0.25
ASEKY Aisin Seiki Co $1.13
BBVA Banco Bilbaoizcaya Argentaria $0.06
E ENI $0.33
FMS Fresenius Medical Care $0.48
SMFG Sumitomo Mitsui Financial $0.21
SBGSY Schneider Electric SA $0.63
PG Procter & Gamble $1.09
CHD Church Dwight $0.70
ALNPY ANA Holdings ADR -$0.20
CVX Chevron $1.58
BNPQY BNP Paribas ADR $1.07
NMR Nomura $0.17
CHT Chunghwa Telecom $0.34
HUN Huntsman $0.81
LIN Linde PLC $2.55
AON AON $1.85
PNM PNM Resources $0.46
CAT Caterpillar $2.41
CPRI Capri Holdings Ltd $0.79
BLMN Bloomin’ Brands $0.66
CHTR Charter Communications $4.79
DAN Dana $0.50
ITW Illinois Tool Works $2.09
GWW Grainger $4.59
CERN Cerner $0.76
NWL Newell Brands Inc $0.45
POR Portland General Electric $0.37
ENB Enbridge USA $0.45
LYB LyondellBasell Industries $5.30
ABBV AbbVie $3.08
SHLX Shell Midstream Partners $0.35
WPC W. P. Carey $0.56
AVNT Avient Corp $0.81
WY Weyerhaeuser $1.37
IDXX Idexx Laboratories $2.02
BCPC Balchem $0.82
For a look at all of today’s economic events, check out our economic calendar.

Schlumberger Tops Q2 Earnings Estimates; Target Price $35

Schlumberger, a technology company that partners with customers to access energy, reported better-than-expected earnings in the second and issued an optimistic outlook for this year as higher oil prices boosted the company’s demand.

The Houston-based company reported quarterly earnings of 30 cents per share, comfortably above the analysts’ expectations of 26 cents. Meanwhile, revenues of $ $5.63 billion topped estimates by $ 5.51 billion.

“Absent any further setback in the recovery, we continue to see our international revenue growing in the second half of 2021 by double-digits when compared to the second half of last year. This translates into full-year 2021 international revenue growth, setting the stage for a strong baseline as we move into 2022 and beyond,” said Schlumberger CEO Olivier Le Peuch.

At the time of writing, Schlumberger shares traded 0.25% higher at $28.05 on Friday. The stock has surged over 28% so far this year.

Analyst Comments

“Wider beat than peers with strong FCF. No real change to outlook except to say the potential for further upside to financial targets where Schlumberger (SLB) has already reached the high end of the annual target for 250-300bps of EBITDA mgn increase. No mention of the “supercycle” used in recent presentations. We wonder how much oil price helped APS, which is said to have contributed to the D&I strength,” noted Marc Bianchi, equity analyst at Cowen.

Schlumberger Stock Price Forecast

Eleven analysts who offered stock ratings for Schlumberger in the last three months forecast the average price in 12 months of $35.36 with a high forecast of $40.00 and a low forecast of $32.00.

The average price target represents a 26.92% change from the last price of $27.86. All of those 11 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $40 with a high of $60 under a bull scenario and $20 under the worst-case scenario. The firm gave an “Overweight” rating on an oilfield services company’s stock.

“Portfolio restructuring masked by downturn: Schlumberger (SLB) has executed a major organizational realignment, which we think has been underappreciated by the market. Defensible market position in the right businesses: We continue to view SLB as the premier OFS franchise, which is now on the right track to value creation. Its high-end businesses have the greatest potential for returns improvement in the coming cycle, in our view,” noted Connor Lynagh, equity analyst at Morgan Stanley.

“Digital & New Energies drive differentiated long-term growth: SLB has developed meaningful partnerships and invested organically in technology to prepare it for two major secular growth trends in the energy industry, which should help address “terminal value” risk.”

Several other analysts have also updated their stock outlook. BofA Global Research raised the price objective to $43 from $42. Citigroup lifted the price target to $40 from $35. JPMorgan upped the target price to $28 from $23. Simmons Energy increased the target price to $29 from $27.5. Stifel raised the target price to $37 from $33.

Check out FX Empire’s earnings calendar

USD/CAD: Loonie Falls for Second Straight Day on Subdued Oil Prices

The Canadian dollar slipped against its U.S. counterpart for the second straight day on Friday as the firm greenback and falling energy prices weighed on the commodity currency.

The dollar to loonie conversion today rose to 1.2607 against the U.S. currency, up from Thursday’s close of 1.2564. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 1.6% so far this month.

“The CAD has outperformed on the week and is the leading G10 currency by modest margin against the USD overall. That is largely a function of the CAD’s strong rebound from the five-month low it reached Monday, however. The USD remains generally overvalued against its major currency peers, our modeling work suggests, and USD/CAD’s overvaluation, which has been evident in our work for some time, remains intact,” noted Shaun Osborne, Chief FX Strategist at Scotiabank.

“This suggests that the USD should edge back somewhat in the near-to-medium term to reconnect with what remains a clearly CAD-supportive backdrop.”

Canada is the world’s fourth-largest exporter of oil, edged lower after witnessing a volatile week. U.S. West Texas Intermediate (WTI) crude futures traded lower by 0.18 cents, or 0.25%, to $71.72 a barrel.

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.16% higher at 92.973 – not far from this year’s high of 93.437.

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

“Attention turns to the July 28th FOMC meeting where we expect taper decisions to be discussed with a formal set of normalization plans released in the Minutes. Such a signal may lead to further moderate tactical gains in DXY to horizontal resistance at 92.85 and perhaps even to pivotal resistance at 93.44 before reversing as fundamentals remain USD negative,” noted analysts at Citibank.

“With the Fed still buying assets unabated, risk sentiment should remain relatively well supported, leading to relative resilience of risk/ high beta FX (Commodity Bloc, Asia EMFX – CNH, SGD and GBP) against low yielders (EUR, JPY, CHF). Overall, levels above 92.50 in DXY still look tough to sustain medium-term while the 90.5 – 91.0 area looks tough to break on the downside leading into the meeting.”

On the macro front, Canada’s June retail sales data dropped 2.1% in May, however, it was better than the expectations of a 3% decline.

Domino’s Shares Hit Record High as Q2 Earnings Beat Forecasts; Target Price $673

Domino’s shares hit a fresh record high after the world’s largest pizza company reported better-than-expected earnings and revenue in the second quarter, largely driven by international and U.S. same-store sales growth and increases in global store counts during the trailing four quarters.

The largest pizza chain in the world said its earnings per share (EPS) rose to $3.12, up from $2.99 seen in the same period a year ago. That was higher than the Wall Street consensus estimates of $2.86 per share.

The company said its revenues increased $112.4 million, or 12.2%, in the second quarter of 2021. That was above the market expectations of $972.3 million.

Following upbeat results, Domino’s shares hit a new all-time high, jumping 14.55% to $538.82 on Thursday. The stock has surged over 40% so far this year.

Analyst Comments

“A top-line beat lapping Covid benefits with positive US sales assuaged lingering concerns on comp outlook with carryout coming back but delivery also holding up amid a favorable consumer backdrop and strong relative value prop. Estimates rise here with confidence in 2H; price target to $564,” noted John Glass, equity analyst at Morgan Stanley.

“Delivery momentum supporting best in class system sales and unit growth in a still fragmented category; advantaged category with Covid-19 disruption and beginning to lap strong year-ago performance. Well-positioned in key US market: Technology leadership, data-driven investment and marketing decisions are hallmarks of the brand. Carryout market represents incremental growth. Sustainable competitive advantages vs aggregators on value, delivery speed which could become more visible in ’21-’22. Strong cash flow generation, stable franchise income stream and international business are partially offset by a price competitive category & high leverage.”

Domino’s Stock Price Forecast

Twenty analysts who offered stock ratings for Domino’s in the last three months forecast the average price in 12 months of $495.16 with a high forecast of $585.00 and a low forecast of $410.00.

The average price target represents a -8.10% change from the last price of $538.82. From those 20 analysts, ten rated “Buy”, 10 rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $564 with a high of $673 under a bull scenario and $389 under the worst-case scenario. The firm gave an “Overweight” rating on the company’s stock.

Several other analysts have also updated their stock outlook. CFRA raised the target price by $75 to $550. Stephens lifted the target price to $540 from $490. Wedbush upped the target price to $585 from $520. Stifel increased the target price to $485 from $435.

“Adj. EPS $3.12 above Cons $2.88 on better-than-expected dom and int’l SSS and slight Op margin upside. Unit growth also ahead of expectations led by international. SSS momentum holding strong despite easing restrictions and tough compares, which lead us to raise our NT ests. price target to $522 (from $420) and reiterate Hold rating as stock’s current valuation of 27x 2022E EBITDA appears fair,” noted Alexander Slagle, equity analyst at Jefferies.

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USD/CAD: Loonie Snaps Two-Day Gaining String on Dovish ECB

The Canadian dollar snapped two-day gains, depreciating against the U.S. dollar in early trade Thursday as the European Central Bank’s more dovish tone on its so-called forward guidance on interest rates helped boost the greenback.

The dollar to loonie conversion today rose to 1.2594 against the U.S. currency, up from Wednesday’s close of 1.2552. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 1.3% so far this month.

“While the CAD remains fundamentally undervalued, in our opinion, it is not clear at all that it can strengthen materially at this point. The good news is perhaps somewhat priced in and higher commodities and/or an even more hawkish BoC stance may be needed to persuade investors of the attractions that we continue to see in the CAD. Canada releases Housing Starts, International Securities Transactions and Wholesale Sales data this morning,” noted Shaun Osborne, Chief FX Strategist at Scotiabank.

Canada is the world’s fourth-largest exporter of oil, which extended gains on concerns of tighter supplies, providing support to the loonie. U.S. West Texas Intermediate (WTI) crude futures traded higher by 0.11 cents, or 0.17%, to $70.44 a barrel.

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.11% higher at 92.865 – not far from this year’s high of 93.437.

The U.S. dollar gained after the ECB said interest rates would stay at record low levels for a long period of time and warned that the new Delta variant of the coronavirus posed a threat to the eurozone growth.

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023.

A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

Coca-Cola Tops Q2 Earnings Estimates, Raises Full-Year Guidance

Coca-Cola, the world’s largest soft drink manufacturer, reported better-than-expected earnings and revenue in the second quarter, largely driven by a recovery in markets where coronavirus-related uncertainty has abated, sending its shares up over 1% on Wednesday.

The most popular and biggest-selling soft drink reported earnings per share of $0.68, beating analysts’ expectations of $0.56. The company said its net revenue surged over 41% to $10.13 billion, beating the Wall Street consensus estimates of $9.32 billion.

Coca-Cola said it expected to deliver organic revenue (non-GAAP) growth of 12% to 14% and comparable net revenues (non-GAAP) to grow in the range of 1% to 2% in the full year 2021. The company also expects to deliver comparable EPS (non-GAAP) growth of 13% to 15% versus $1.95 in 2020.

Following the upbeat results, Coca-Cola shares 1.28% to $56.55 on Wednesday. The stock rose over 3% so far this year.

Analyst Comments

“Short term, we see a well-above-consensus post-COVID-19 topline/EPS recovery ahead through 2022, and longer-term, see a return to pre-COVID-19 outsized sales growth vs. peers, improved execution with a reorganization, and higher margins with productivity/rational industry environment,” noted Dara Mohsenian, equity analyst at Morgan Stanley.

“We are Overweight Coca-Cola (KO) after significant stock underperformance given COVID-19 impacts on KO’s on-premise eating / drinking out business (~40% of sales) and gas & convenience (~10%) with gov’t mandated restaurant closures and reduced foot traffic. COVID-19 impacts drove a large -9% organic sales decline in 2020, but we forecast a recovery to ~14.5% organic growth in 2021 and ~8% in 2022 with a post-COVID-19 recovery in away-from-home. We believe Coke’s LT topline growth outlook is above peers, with strong pricing power, and favorable strategy tweaks under Coke’s CEO, including increased innovation and a cultural shift towards a total beverage company.”

Coca-Cola Stock Price Forecast

Ten analysts who offered stock ratings for Coca-Cola in the last three months forecast the average price in 12 months of $61.20 with a high forecast of $64.00 and a low forecast of $58.00.

The average price target represents an 8.22% change from the last price of $56.55. From those ten analysts, six rated “Buy”, four rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $65 with a high of $75 under a bull scenario and $40 under the worst-case scenario. The firm gave an “Overweight” rating on the soft drink company’s stock.

Several other analysts have also updated their stock outlook. Cowen and company raised the target price to $60 from $57. JPMorgan lifted the target price to $59 from $56. Jefferies increased the target price to $59 from $57. Guggenheim raised the target price to $59 from $56.

“Our FY21-23 EPS ests are little changed (we raised our forecast into KO’s 2Q print) and maintain our Hold post KO’s strong 2Q. The recovery in AFH channels, continued resilience in AH channels (notably in DMs + for new occasions), improved market share, and commitment to restoring A&M are all encouraging. We like the strategic direction; however, expectations appear reasonable, and we see less scope for shares to re-rate higher at ~25x P/E. Hold, $60 price target,” noted Kevin Grundy, equity analyst at Jefferies.

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USD/CAD: Loonie Gains in Early Trade on Rising Oil Prices

The Canadian dollar strengthened against the U.S. dollar in early trade Wednesday as stocks edged higher and oil prices recovered.

The dollar to loonie conversion today fell to 1.2625 against the U.S. currency, down from Tuesday’s close of 1.2677. The Canadian dollar had lost about 3% in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 2% so far this month.

Canada is the world’s fourth-largest exporter of oil, which rose over 2% as risk appetite improved, providing support to the loonie. U.S. West Texas Intermediate (WTI) crude futures rose by 1.96 cents, or 2.96%, to $69.19 a barrel.

USD/CAD remains technically strong. Gains have extended further over the past week—to the point that we can no longer really consider this USD rise as corrective. Increasingly, the technical odds are tilting towards the idea that the early June low at 1.2007 was the low for the move down from 1.47. Short-term dynamics are USD-bullish; gains through the past couple of sessions are consolidating in a bull wedge/flag pattern, with renewed, short-term gains likely on a break above 1.2780,” noted Shaun Osborne, Chief FX Strategist at Scotiabank.

“Short, medium and long run DMI oscillators are bullishly aligned for the USD, limiting downside risks (we spot short-term support at 1.2715/35 now) and supporting the outlook for ongoing gains. Key USD support is 1.2625/50 (a small gap on the chart may have to be filled here at some point). Recall that the 1.2635 point represented the 23.6% Fibonacci resistance of the 1.47/1.20 move down. We look for the USD to progress towards the 1.30 area (1.3024 being the 38.2% Fib point) in the next 1-3 months.”

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading 0.10% higher at 93.067 – not far from this year’s high of 93.437.

“BoC tapers the pace of its QE purchases to C$2bn/week as widely expected, in a policy decision that is largely neutral, if not slightly dovish with emphasis on a full recovery that is still a ways off. Policy guidance is little changed, with the output gap still estimated to close in H2 2022. Our base case is for another tapering in Oct, with net-zero purchases by year-end and BoC to commence rate hikes in 2022,” noted analysts at Citibank.

USD/CAD ends the week at 1.2615, reflecting USD strength and some disappointment from a fairly neutral BoC statement last week given the already-built rate expectations on the high side for 2022. However, both fundamentals and technicals continue to support the “buy CAD on dips” sentiment not only vs USD but also against low yielders (EUR, JPY and CHF).”

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to CAD pair higher.

Halliburton Stock Gains After Q2 Earnings Top Estimates; Target Price $33 in Best Case

Halliburton, one of the world’s largest providers of products and services to the energy industry, reported better-than-expected earnings in the second quarter, sending its shares up over 3% on Tuesday.

The Houston, Texas-based energy company said its profit rose to $227 million, or $0.26 per share, up from $170 million, or $0.19 per share, seen in the previous quarter. That was higher than the market expectations of $0.22 per share.

The company reported total revenue of $3.7 billion, up from $3.5 billion registered in the previous quarter. Operating income was $434 million in the second quarter of 2021 compared to operating income of $370 million in the first quarter of 2021.

Following the upbeat results, Halliburton shares jumped 3.6% to $20.07 on Tuesday. The stock rose over 6% so far this year.

Analyst Comments

Halliburton (HAL) laid out an above-consensus multi-year financial view, suggesting high confidence in the ongoing recovery. Growth contemplated is broad-based, high-margin, and FCF generative. For the near-term, though, guidance continues to be reasonably conservative and more in-line with our expectations,” noted Connor Lynagh, equity analyst at Morgan Stanley.

“Relative positioning less favorable vs. some global peers: Though it has decreased in absolute size, HAL still remains more NAm-focused vs. peers, where we see greater headwinds to value creation and returns improvement. Risk-reward relatively balanced: We see relatively balanced risk-reward for HAL’s shares and believe a more significant capex shift back into its core markets would be required for meaningful outperformance vs. the group.”

Halliburton Stock Price Forecast

Ten analysts who offered stock ratings for Halliburton in the last three months forecast the average price in 12 months of $25.94 with a high forecast of $33.00 and a low forecast of $16.50.

The average price target represents a 29.25% change from the last price of $20.07. From those ten analysts, five rated “Buy”, five rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $28 with a high of $40 under a bull scenario and $15 under the worst-case scenario. The firm gave an “Equal-weight” rating on the energy company’s stock.

Several other analysts have also updated their stock outlook. Evercore ISI raised the target price to $38 from $29. Piper Sandler lifted the target price to $25.50 from $25.30. ATB Capital Markets upped the target price to $29 from $27.50. BofA Global Research increased the price objective to $33 from $28.

“Modest 2Q beat and 3Q guide which again appears to reflect conservative margins, but the real news was that HAL introduced a 2023 outlook implying ~$4B of EBITDA vs $3.5Bcons and our $4B. Investors wonder if HAL is being too aggressive guiding to ’23 given the industry’s typical lack of visibility. It will be interesting to see if OFS peers endorse this view in the coming days,” noted Marc Bianchi, equity analyst at Cowen.

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USD/INR: Rupee Extends Losses, Falls 8 Paise in Early Trade

The Indian rupee opened lower, depreciating by 8 paise against the U.S. dollar in early trade Tuesday as strong greenback and volatility in the domestic equity market continued to pressurize the battered Asian currency.

The rupee hit a three-month low on Monday as traders moved to the safety of the U.S. dollar amid rising COVID-19 cases that threaten to derail the global economic recovery.

The dollar to rupee conversion today rose to 74.95 against the U.S. currency, up from Monday’s close of 74.87. The rupee has lost over 170 paise in June – posting the biggest monthly drop since March 2020, the early days of the pandemic, and weakened over 60 paise so far this month.

“The rupee witnessed sharp depreciation against the dollar in the last session and lost 55 paise amid a strengthening dollar index. The safe-haven US dollar moved higher against a basket of major currencies on Monday as investors grew nervous about a raging coronavirus variant that could threaten the outlook for a global economic recovery. The greenback jumped even as the US 10-year Treasury yield dropped to a more than the five-month low of 1.176%,” noted analysts at ICICI Direct.

“The USD to INR has moved higher towards 75 levels surpassing its highest Call base. Continued up move towards 75.50 is expected in the coming sessions. The dollar to rupee July contract on the NSE was at 75.02 in the last session. The open interest fell almost 1% for the July series while August series OI increased by almost 60%.”

The dollar index, a measurement of the dollar’s value relative to six foreign currencies, was trading nearly flat at 92.894 – not far from this year’s high of 93.437.

The world’s dominant reserve currency, the USD, is expected to rise further over the coming year, largely driven by the Fed’s expectation of two rate hikes in 2023. A strengthening dollar and growing risk that the Federal Reserve would tighten its monetary policy earlier than expected would push the USD to INR pair higher.

It is worth noting that sustained foreign fund outflows, higher oil prices, and firm U.S. dollar will continue to weigh on the rupee.

Global oil benchmark Brent futures traded 0.12% higher at $68.70 per barrel at the time of writing. Earlier this month, oil prices spiked to a three-year high of $77.84 per barrel as OPEC+ failed to reach an agreement. Higher oil prices would push up the inflation expectations and widen India’s trade deficit, which could hurt the Indian rupee.

The benchmark equity indices BSE Sensex was trading 290 points or 0.56% lower at 52,262.45, while the broader NSE Nifty slumped 95.90 points or 0.61% to 15,655.35. Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 2,198.71 crore, as per exchange data.

United Airlines Shares Slump Ahead of Q2 Earnings

United Airlines shares slumped over 5% on Monday ahead of the second-quarter earnings results, where the major U.S. airline company is expected to report a loss for the sixth consecutive time of $4.21 as the aviation service provider continues to be negatively impacted by the ongoing COVID-19 pandemic and travel restrictions.

However, that would represent a year-over-year improvement of about 55% from -$9.31 per share seen in the same quarter a year ago. The Chicago, Illinois-based airlines would post revenue growth of over 250% to $5.25 billion, up from $1.48 billion a year ago.

Due to the ongoing COVID-19 crisis, the company reported losses in all four quarters, posting an average negative earnings surprises of 5.39%.

At the time of writing, United Airlines shares traded 5.19% lower at $43.60 on Monday.

United Airlines Stock Price Forecast

Fifteen analysts who offered stock ratings for United Airlines in the last three months forecast the average price in 12 months of $60.46 with a high forecast of $78.00 and a low forecast of $43.00.

The average price target represents a 36.94% change from the last price of $44.15. From those 15 analysts, four rated “Buy”, ten rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $70 with a high of $96 under a bull scenario and $30 under the worst-case scenario. The firm gave an “Equal-weight” rating on the Airlines’ stock.

Several other analysts have also updated their stock outlook. Jefferies lowered the target price to $50 from $55. Evercore ISI slashed the target price to $55 from $66. Bernstein increased the target price to $76 from $67. Cowen and company lifted the target price to $72 from $65. Berenberg upped the target price to $50 from $48.

Analyst Comments

“We like United Airlines (UAL) confidence in providing a 2023 cost guide which includes a goal to permanently reduce $2 bn of cost and at least match 2019 margins. The market is also very keen to see UAL’s go-to-market strategy on the revenue side as travelers return,” noted Ravi Shanker, equity analyst at Morgan Stanley.

“However, the legacy network footprint is a slightly bigger overhang than its network peers and the cap structure will likely take years to normalize, which could remain overhangs on the stock.”