By Ben Fox Rubin
Earnings season heats up next week, with a big showing from
financial and technology companies. The initial public offerings
market, which had one of its busiest weeks of the year this week,
should drop off completely, with no IPOs expected to start trading
next week.
Also, reports on retail, housing and factory activity are
scheduled.
Major Financial Firms Reporting Quarterly Results
A flurry of financial firms are scheduled to report their latest
numbers next week, with Citigroup Inc. (C) kicking off the busy
week Monday, followed by Goldman Sachs Group Inc. (GS), Bank of
America Corp. (BAC), American Express Co. (AXP), Morgan Stanley
(MS) and Blackrock Inc. (BLK), among others.
Bank results are generally expected to be flat with the second
quarter, but much better than last year when the U.S. long-term
credit rating was downgraded and fears of a Europe contagion roiled
markets and operations for the largest banks.
J.P. Morgan Chase & Co. (JPM) and Wells Fargo & Co.
(WFC) kicked off the quarter on Friday. Wells Fargo's results were
mostly in-line with expectations. J.P. Morgan easily beat market
expectations, as analysts said the results suggested returns for
the rest of the major banks will be better than previously
expected.
Tech Giants to Weigh in with Third Quarter Numbers
The technology sector will also have a busy reporting week, with
Google Inc. (GOOG), Intel Corp. (INTC), International Business
Machines Corp. (IBM), Microsoft Corp. (MSFT) and eBay Inc. (EBAY)
slated for results.
Google comes into reporting season after the biggest quarterly
runup of its stock in seven years--hitting all-time highs--as
concerns faded about its $12.5 billion Motorola Mobility
acquisition as well as the price of mobile-search ads. Investors
are watching for signs Google can maintain its momentum.
Microsoft posted a rare quarterly loss in July because of a
charge for its money-losing Internet business, but the company
continued to show signs of strength in selling software to
corporations. Microsoft is expected to bounce back to a profit,
though earnings are expected to be lower that a year ago.
Industrial, Restaurant and Consumer Products Companies Round out the Week
Other major names reporting results next week include
industrials Halliburton Co. (HAL) General Electric Co. (GE) and
Schlumberger Ltd. (SLB). Also, McDonald's Corp. (MCD) and Chipotle
Mexican Grill Inc. (CMG) are expected to report, as well as
consumer brands Coca-Cola Co. (KO) and PepsiCo Inc. (PEP), and
health-care conglomerate Johnson & Johnson (JNJ).
Pinnacle Airlines Looks for Labor Concessions
In Manhattan, Pinnacle Airlines Corp. (PNCLQ) will seek court
approval to impose labor concessions upon its pilots and flight
attendants, a move the employees' unions are expected to fight.
Also, failed solar company Solyndra LLC on Wednesday will seek
bankruptcy-court approval of its plan to pay creditors, though the
plan has come under fire from the federal government. Most of
Solyndra's $528 million in federally backed loan debt would go
unpaid under the plan.
Data Reports on Shopping, Housing, Inflation
Next week's calendar will touch on almost every facet of the
economy, save for trade. Upcoming reports will cover shopping,
housing, factory activity and inflation.
September retail sales will be reported Monday. Auto makers
already have reported robust sales for the month. As a result,
economists surveyed by Dow Jones Newswires expect total retail
sales to have risen a strong 0.7% last month. Excluding autos,
store receipts are expected to have risen a solid 0.6%, lifted by
high prices for gasoline.
Home-building and sales data are also on tap next week. The New
York Fed's Empire State survey, due Monday, is expected to show the
state's manufacturing is still contracting.
Additionally, more information on inflation will be reported
Tuesday when the consumer price index is released.
No IPO Slated Following a Strong Week
The initial public offering market roared to life this week, but
no deals stand ready to absorb the market's newly found momentum,
with a bare docket for the coming week.
A series of end-of-week offerings from Workday Inc. (WDAY) on
Friday, and four deals on Thursday from Realogy Holdings Corp.
(RLGY), Shutterstock Inc. (SSTK), Kythera Biopharmaceuticals Inc.
(KYTH) and Intercept Pharmaceuticals Inc. (ICPT) served as a
forceful conclusion to a languid stretch for IPOs.
Conferences
Among the conferences scheduled for next week are NYSE Euronext
Portuguese Day from Monday to Tuesday in New York; Canaccord
Genuity Resource Conference from Tuesday to Thursday in Miami,
Fla.; and Smithers Rapra's Biopolymers Symposium from Monday to
Wednesday in San Antonio, Texas.
--Christian Berthelsen, Jacqueline Palank, Kathleen Madigan and
Chris Dieterich contributed to this article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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