Welcome to the trading week of May 14th, here is what we have in store for us:
By: JeeYeon Park
With a parade of major retailers and some smaller tech firms on tap to post earnings next week, check out what analysts expect and how to trade some of the top companies.
MONDAY - Groupon [GRPN 9.90 0.03 (+0.3%) ]
"I don’t even understand what’s so great about their business model. At the end of the day, they peddle coupons," Jim Iuorio of TJM Institutional Services said on CNBC's "Power Lunch." "They may post decent earnings—but there’s no reason I’d get involved at this point."
"When you put [Home Depot] together with the consumer sentiment numbers, I kind of like [the company]," Iuorio said of the home-improvement retailer. "And the way it’s traded over the last week or so seems to have put in a bit of a stabilization area ... and your stop’s pretty well defined, too, if it takes out lows from last week."
WEDNESDAY - Target [TGT 55.43 0.12 (+0.22%) ], Abercrombie & Fitch, Deere, Staples, Limited Brands
"I'm not too pleased with them hanging their hat on big growth in Canada as their next growth area. I don’t hear that mentioned as the next hotspot, but I think Target does a lot of things well," he said. "I would maybe take a small shot in Target."
THURSDAY - Wal-Mart [WMT 59.42 0.23 (+0.39%) ], Dollar Tree, Ross Stores, Gamestop, Aeropostale, Gap, Zumiez
"I don’t really love Wal-Mart. All of their stores that are international have been there for 10 years or more, and they haven’t had a good return on assets there," he said.
Computer Sciences, Applied Materials, Marvell Tech, Autodesk, Salesforce.com
FRIDAY - Ann, Foot Locker
How to Trade Next Week's Earnings
Jim Iuorio, TJM Institutional Services, offers insight on how to trade stocks ahead of their earnings report next week, including Groupon, Wal-Mart and Home Depot.
Wall Street could get a chance to show just how much it ‘likes’ Facebook in the week ahead.
Facebook’s giant IPO is tentatively scheduled to price May 17, pending SEC approval. But Europe may continue to drive the action as markets navigate the politics of Greece and Italian and French debt auctions.
There is also a heavy calendar of U.S. data, including retail sales, industrial production, weekly claims and the minutes of the Fed’s last meeting.
“I don’t see much reason for the market to bounce next week,” said Barry Knapp, head of equity portfolio strategy at Barclays.
Market Sentiment Poll! Please vote! Will the markets be up or down for the week?
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