This Weeks Market Forecast and Big Earnings Releases
Jason Lubin June 29, 2020 4:14 PM
Can the market go lower?
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
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.