Here’s your Investing Action Plan for Wednesday: what you need to know as an investor for the coming day.
XAutoplay: On | OffA range of industrial, tech, consumer and medical companies report Wednesday, led by Boeing (BA), Facebook (FB), PayPal (PYPL), and Edwards Lifesciences (EW). The Federal Reserve also wraps up its policy meeting as markets await more clues on how the central bank views weakening inflation signals and how it will shrink its $4 trillion balance sheet.
The aerospace giant reports Q2 results before the market opens.
Estimates: A profit of $2.32 per share, according to Zacks Investment Research, swinging from a loss of 44 cents a share a year ago, when Boeing took $3 billion in pretax charges. Revenue is expected to fall 7.2% to $22.97 billion, as commercial aircraft deliveries in Q2 fell 8% to 183.
Stock: Shares were up 0.3% to 212.91 on the stock market today, hitting a fresh intraday high and heading for another record close.
Analysts will also be eager for an update on Boeing’s midmarket plane, which analysts have dubbed the 797. It’s an effort by Boeing to take back market share from Airbus and its popular A321neo.
Also early Wednesday, Northrop Grumman‘s (NOC) EPS is seen rising 9.2% to $2.84 with revenue up 3.3% to $6.2 billion, and General Dynamics‘ (GD) EPS is seen flat at $2.43 with revenue up 2% to $7.8 billion.
4 Things To Watch As Boeing Reports Earnings Wednesday
The social-networking leader reports Q2 numbers after the close.
Estimates: EPS to climb 16.5% to $1.13, as revenue jumps 42.5% to $9.17 billion.
Stock: Shares were down 0.8% at 164.61, retreating from Monday’s record high.
Its dominance is viewed as so complete that Needham analysts recently said Facebook “is becoming the de facto near-monopoly mobile choice for brands and direct response advertisers.” Facebook last month said it reached a new milestone, announcing that it has topped 2 billion monthly active users, doubling its base in a little more than 4-1/2 years.
Central bank policymakers will release an announcement at 2 p.m. No press conference with Fed Chair Janet Yellen is scheduled, and markets are putting the odds of no change in policy at nearly 97%, according to the CME Group’s FedWatch Tool. But nuances in how the statement changes from the last meeting could hint at shifts in the Fed’s stance as inflation softens. An announcement on the Fed’s balance sheet strategy is expected in September, but some hints could trickle out.
The digital payments company reports Q2 financials after the close.
Estimates: EPS to rise 17% to 42 cents, marking its fourth straight quarter of accelerating growth, as revenue grows 17% to $3.1 billion.
Stock: Shares dipped less than 0.1% to 58.54 but remain near record highs.
Last week, PayPal and JPMorgan Chase (JPM) agreed to boost their online payment services, easing the way for Chase credit card customers to link to PayPal accounts.
The medical device maker reports Q2 numbers after the close.
Estimates: EPS of 88 cents, up 16%, on sales of $836 million, up 10%.
Stock: Shares fell 1% to 116.01, slipping below their 50-day average and dropping further below buy range after breaking out last month.
Early Thursday, Boston Scientific (BSX) is projected to report EPS of 31 cents, up 15%, and revenue of $2.21 billion, up 4%. Late Thursday, Stryker (SYK) is forecast to report EPS of $1.51, up 8.6%, on $2.98 billion in sales, up 4.8%, late Thursday.
Other highly rated stocks reporting Wednesday:
Hilton Hotels (HLT): EPS to drop 33% to 50 cents as revenue falls 24.5% to $2.3 billion. Shares were up 0.5% at 62.34, forming a flat base with a 67.89 buy point.
Lam Research (LRCX): EPS to jump 68% to $3.02 with revenue up 50% to $2.32 billion. Shares edged up 0.1% to 164.31, nearing a 167.15 entry from a cup base.
Las Vegas Sands (LVS): EPS to rise 17% to 61 cents as revenue grows 14% to $3.02 billion. Shares eased 0.6% to 62.33, retreating from the upper end of its buy range.