Earnings Preview for the Last Week of October
Posted Sunday, October 25th, 2009 in DailyRead by ILive-DaveTags: ACI, Daily Read, DTG, GT, XOM
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Busy week ahead on the street. Big run-up in energy most likely won’t be reflected in Q3 earnings. I think investors have had enough of earnings, I know I have. You have got a picture of what the situation looks like for companies, cost cutting to beat expectations.
We will get Q3 GDP this week, and this is it folks. I mean wow, we are expecting big time growth here, north of 4% annualized. Hopefully we won’t be in for a Halloween surprise on the downside, especially when you have had hundreds of billions of fiscal stimulus pumped in this quarter. Most expect Q3 and Q4 to be some of the strongest quarters in the near term, with both fiscal and monetary stimulus in full effect, while you are in between higher defaults on mortgages and commercial loans.
Monday: Verizon Communications (VZ) is the big report. Watch what it has to say about the development of a new mobile phone with Google’s (GOOG) Android operating system. The market is getting flooded with new smart-phone devices. Another reporter: Dollar Thrifty Automotive Group (DTG), which will offer some insight into business and discretionary travel.
Tuesday: Two non-U.S. automakers report: Honda (HMC) and Daimler (DAI). Their views of the U.S. auto market will be worth listening to. September auto sales fell dramatically with the expiration of the government’s Cash for Clunkers program. What will these companies say about October?
Wednesday: ConocoPhillips may get the most attention because of its size. Listen to their commentary on oil and natural-gas demand. Watch homebuilder Ryland (RYL) for its perspective on the U.S. housing market. Goodyear (GT) will add to the auto picture. Colgate-Palmolive (CL) will have a perspective on consumer spending.
Thursday: Exxon Mobil is up 7% in October. But its 7.8% gain for the year puts it 27th among the 30 Dow stocks for the year. Not much of a performance. Its third-quarter results are not likely to compare well with a year ago when crude was well over $100 a barrel. Food company Kellogg (K) may signal what consumers may face in terms of inflation in the next six to nine months.
Friday: Chevron has performed better than Exxon but not by much. But numbers should be big. Arch Coal (ACI) should offer a sense of utility and industrial demand for energy




