Earnings for the Week/ New Trade (FLEX)
The bulls are trying to show some follow through today following a higher open and their quest for higher highs. The action is currently favoring the bears slightly, but not much damage is being done as near-term support levels are easily holding.
With earnings season starting to wind down, the attention will start to focus more on economic, and possible geopolitical news, into month end and June. July will mark the start of second quarter earnings season but there will be notable companies still reporting earnings over the next 6-8 weeks.
The opportunity for earnings trades will also be there as Wall Street usually forgets to focus on the smaller companies once the bigger fireworks are over. Earnings trades are still tricky but provide some of the best option returns as stocks tend to make their biggest price swings on the announcements.
As far as this week’s action, the candidates aren’t my favorite but lets’s cover the list.
After today’s closing bell, NetList (NLST), Jack in the Box (JACK), Red Robin Gourmet Burgers (RRGB) and Urban Outfitters (URBN) will report earnings.
American Eagle Outfitters (AEO), Cisco Systems (CSCO), L Brands (LB) and Target (TGT) highlight Wednesday’s action.
For Thursday, Alibaba (BABA), Applied Materials (AMAT), Autodesk (ADSK), Gap (GPS), Ralph Lauren (RL), Ross (ROSS) and Salesforce (CRM) will announce their quarterly results.
And finally, ahead of Friday’s opening bell, Campbell Soup (CPB), Deere & Company (DE) and Foot Locker (FL) will confess their numbers.
Out of the aforementioned group, I currently researching and doing the homework for a possible trade in AMAT.
Turning our attention to the indexes, the Dow is lower by 11 points to 20,970 while the S&P 500 is off 2 points to 2,399. The Nasdaq is up 3 points to 6,153 and the Russell 2000 is sliding 7 points to 1,386.