This Weeks Market Forecast and Big Earnings Releases
Can the market go lower?
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On Tuesday, Oracle (ORCL) is likely to unveil 4Q EPS of $1.20 vs. $1.16 the prior year on revenue of $10.9B compared to $11.1B last year. The Co sells a wide variety of enterprise information technology software and hardware, and on June 10th, Bloomberg reported that the Co went to the U.S. Court of Appeals to try to force the Pentagon to redo the Joint Enterprise Defense Infrastructure (JEDI) bid. Oracle alleged that the bidding requirements used by the Pentagon unfairly lock out other qualified companies from being considered for the 10 year contract worth at least 10 billion dollars. Looking at a daily chart, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $53.11 and $52.79). We are looking at the final target of $47.20 with a stop-loss set at $54.30.
Also on Tuesday, H&R Block (HRB) is expected to announce 4Q EPS of $2.97 vs. $4.32 the prior year on revenue of $1.7B compared to $2.3B in the year before. The Co provides tax return services and its current analyst consensus rating is 1 buy, 7 holds and 1 sell, according to Bloomberg. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is trading under its 20 day MA ($17.72) but above its 50 day MA ($16.03). We are looking at the final target of $20.60 with a stop-loss set at $15.70.
On Thursday, Kroger (KR) is anticipated to release 1Q EPS of $1.01 vs. $0.72 the prior year on revenue of $40.1B compared to $37.3B last year. The Co operates a chain of superstores and corner stores, and on June 8th, Roku (ROKU), the video streaming platform announced a partnership with the Co. The deal is for Roku to use Kroger's customer data collection in order to help companies target TV advertisements more effectively. From a chartist's point of view, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $32.49 and $32.33). We are looking at the final target of $28.90 with a stop-loss set at $34.40.
On Friday, CarMax (KMX) is awaited to post 1Q EPS of $0.05 vs. $1.59 the prior year on revenue of $2.4B compared to $5.4B last year. The Co operates a car and light truck retail chain, and its current analyst consensus rating is 14 buy, 2 holds and 1 sell, according to Bloomberg. Technically speaking, the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $87.72 and $75.56). We are looking at the final target of $103.60 with a stop-loss set at $82.80.
Looking at the S&P 500 CFD, the index has broken below its loose support at the 200-period moving average. As long as the S&P can stay below this weeks open and new resistance of 3037, we should expect a return to the 2936 support level before heading back down towards 2908. If price break above 3037, we may see a spike back towards the 3089 level. However, even if price breaks above 3037, we could see choppy price action followed by another sell-off given the possibility that a second wave of coronavirus pandemic could occur.
Source: GAIN Capital, TradingView
Also on Tuesday, H&R Block (HRB) is expected to announce 4Q EPS of $2.97 vs. $4.32 the prior year on revenue of $1.7B compared to $2.3B in the year before. The Co provides tax return services and its current analyst consensus rating is 1 buy, 7 holds and 1 sell, according to Bloomberg. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is trading under its 20 day MA ($17.72) but above its 50 day MA ($16.03). We are looking at the final target of $20.60 with a stop-loss set at $15.70.
On Thursday, Kroger (KR) is anticipated to release 1Q EPS of $1.01 vs. $0.72 the prior year on revenue of $40.1B compared to $37.3B last year. The Co operates a chain of superstores and corner stores, and on June 8th, Roku (ROKU), the video streaming platform announced a partnership with the Co. The deal is for Roku to use Kroger's customer data collection in order to help companies target TV advertisements more effectively. From a chartist's point of view, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $32.49 and $32.33). We are looking at the final target of $28.90 with a stop-loss set at $34.40.
On Friday, CarMax (KMX) is awaited to post 1Q EPS of $0.05 vs. $1.59 the prior year on revenue of $2.4B compared to $5.4B last year. The Co operates a car and light truck retail chain, and its current analyst consensus rating is 14 buy, 2 holds and 1 sell, according to Bloomberg. Technically speaking, the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $87.72 and $75.56). We are looking at the final target of $103.60 with a stop-loss set at $82.80.
Looking at the S&P 500 CFD, the index has broken below its loose support at the 200-period moving average. As long as the S&P can stay below this weeks open and new resistance of 3037, we should expect a return to the 2936 support level before heading back down towards 2908. If price break above 3037, we may see a spike back towards the 3089 level. However, even if price breaks above 3037, we could see choppy price action followed by another sell-off given the possibility that a second wave of coronavirus pandemic could occur.
Source: GAIN Capital, TradingView
On Tuesday, FedEx (FDX) is likely to unveil 4Q EPS of $1.83 vs. $5.01 the prior year on revenue of $16.5B compared to $17.8B last year. The Co operates the largest express package delivery service in the world and on June 15th, FedEx Office, a subsidiary of the Co and online design platform Canva joined forces to create a digital design-to-print marketplace in order to make it easier for business owners and consumers to create professionally printed materials. In other news, on June 4th The Wall Street Journal revealed that the Co would be adding surcharges to some of its shipments in the U.S., following in the foot steps of its competitor United Parcel Service (UPS). Looking at a daily chart, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under its 20 day MA ($136.31) but above its 50 day MA ($126.24). We are looking at the final target of $108.60 with a stop-loss set at $145.00.
Additionally on Tuesday, Conagra Brands (CAG) is expected to announce 4Q EPS of $0.65 vs. $0.36 the prior year on revenue of $3.1B compared to $2.6B in the year before. The Co produces packaged food products and its current analyst consensus rating is 11 buys, 9 holds and 0 sells, according to Bloomberg. From a technical point of view, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $33.66 and $33.64). We are looking at the final target of $30.00 with a stop-loss set at $35.10.
On Wednesday, General Mills (GIS) is anticipated to release 4Q EPS of $1.06 vs. $0.83 the prior year on revenue of $4.9B compared to $4.2B last year. The Co operates a global packaged food business and on June 16th, the Co began a regenerative agriculture program in Michigan to make its dairy supply chain more sustainable by lowering its carbon footprint. From a chartist's point of view, the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at $61.48 and $60.99). We are looking at the final target of $55.80 with a stop-loss set at $62.70.
Also on Wednesday, Constellation Brands (STZ) is awaited to post 1Q EPS of $2.11 vs. $2.21 the prior year on revenue of $2.0B compared to $2.1B last year. The Co is the world's largest producer and marketer of branded alcoholic beverages, and its current analyst consensus rating is 14 buys, 6 holds and 1 sell, according to Bloomberg. Technically speaking, the RSI is below 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $176.84 and $169.40). We are looking at the final target of $147.30 with a stop-loss set at $183.30.
Looking at the S&P 500 CFD, the index has been falling inside of a descending channel that began to form last week on June 23rd. The index recently used the 200-period moving average as resistance after a big bounce on June 25th. Price is expected to continue advancing towards the upper trend line before finding resistance around the 3063 level. Price would then decline back to 2995 after reaching the top of the channel and losing momentum. The index would likely continue its retreat back to 2965. If price reaches the 3063 level and manages to break through it, we could see price breakout to the upside of the upper trend line, a bullish signal that could lead to a short-term up trend. If price continues upward to break above the 3093 level we could see a big rally on the 30 minute chart.
Source: GAIN Capital, TradingView
Additionally on Tuesday, Conagra Brands (CAG) is expected to announce 4Q EPS of $0.65 vs. $0.36 the prior year on revenue of $3.1B compared to $2.6B in the year before. The Co produces packaged food products and its current analyst consensus rating is 11 buys, 9 holds and 0 sells, according to Bloomberg. From a technical point of view, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $33.66 and $33.64). We are looking at the final target of $30.00 with a stop-loss set at $35.10.
On Wednesday, General Mills (GIS) is anticipated to release 4Q EPS of $1.06 vs. $0.83 the prior year on revenue of $4.9B compared to $4.2B last year. The Co operates a global packaged food business and on June 16th, the Co began a regenerative agriculture program in Michigan to make its dairy supply chain more sustainable by lowering its carbon footprint. From a chartist's point of view, the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at $61.48 and $60.99). We are looking at the final target of $55.80 with a stop-loss set at $62.70.
Also on Wednesday, Constellation Brands (STZ) is awaited to post 1Q EPS of $2.11 vs. $2.21 the prior year on revenue of $2.0B compared to $2.1B last year. The Co is the world's largest producer and marketer of branded alcoholic beverages, and its current analyst consensus rating is 14 buys, 6 holds and 1 sell, according to Bloomberg. Technically speaking, the RSI is below 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $176.84 and $169.40). We are looking at the final target of $147.30 with a stop-loss set at $183.30.
Looking at the S&P 500 CFD, the index has been falling inside of a descending channel that began to form last week on June 23rd. The index recently used the 200-period moving average as resistance after a big bounce on June 25th. Price is expected to continue advancing towards the upper trend line before finding resistance around the 3063 level. Price would then decline back to 2995 after reaching the top of the channel and losing momentum. The index would likely continue its retreat back to 2965. If price reaches the 3063 level and manages to break through it, we could see price breakout to the upside of the upper trend line, a bullish signal that could lead to a short-term up trend. If price continues upward to break above the 3093 level we could see a big rally on the 30 minute chart.
Source: GAIN Capital, TradingView
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