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- 👉 The Investing Week Ahead: New Highs and Tech Tides
👉 The Investing Week Ahead: New Highs and Tech Tides
$3.5B of NVDA shorts wiped...
Welcome to your new week.
Spring is inching closer, and the markets have reached all-time highs fueled by AI momentum.
This week, we anticipate key retail earnings and consumer confidence figures to reveal more about the market's pulse.
Tech takes center stage as Nvidia's valuation soars — briefly hitting the $2 trillion mark and destroying $3.5 billion in shorts along the way. Amazon's (AMZN) entry into the Dow Jones, replacing Walgreens (WBA), highlights the expanding influence of tech in the market.
However, it's not all about the highs; the EV sector faces challenges — with key players like RIVN, LCID, NIO, FSR hitting new lows.
Everything you need to know is below!
Key Earnings Announcements:
A healthy mix of retail and tech suggests a chaotic week of earnings.
Monday (2/26): Berkshire Hathaway, Car Gurus, Domino’s Pizza, Heico, Li Auto, Unity, Workday, Zoom
Tuesday (2/27): American Tower, AutoZone, Axon Enterprise, Bank of Montreal, Bank of Nova Scotia, Cava, Devon, eBay, First Solar, Lowe’s, Macy’s, Norwegian Cruise Line, Splunk
Wednesday (2/28): Advance Auto Parts, AMC, Baidu, Duolingo, Emcore, Icahn Enterprises, Marathon Digital Holdings, Novavax, Okta, Paramount, Royal Bank of Canada, Salesforce, Snowflake, Viatris
Thursday (2/29): Anheuser-Busch InBev, Autodesk, Best Buy, Birkenstock, Canadian Natural Resources, Celsius, Dell Technologies, Fisker, Hewlett Packard Enterprise, London Stock Exchange Group, Veeva Systems, Zscaler
Friday (3/1): Amneal Pharmaceuticals, Atlantica Sustainable Infrastructure, FuboTV, inTest, Keros Therapeutics, Plug Power, RadNet
What We’re Watching:
Salesforce is gearing up for its Q4 earnings this Wednesday (2/28) — following an +80% rally over the past year. The company's resurgence, fueled by the introduction of innovative AI tools across the platform, positions it within spitting distance of its all-time-high from 2021.
This quarter, analysts will closely examine Salesforce's revenue across its Subscription & Support segments — with a keen eye on maintaining double-digit growth in its core sales platform.
Macy’s is in the spotlight amid a pivotal quarter for retail — acting as a key indicator of consumer spending and sector health. Ever since consumer spending economic data showed easing — eyes shifted toward upcoming retailer reports. Its performance is under close watch following recent operational adjustments — including 2,350 layoffs and five store closures. Macy’s even rejected a $5.8 billion dollar offer to take the 165-year-old retailer private.
Analysts estimate ‘Net Sales’ of $8.09 billion (-2.1% YoY). Stay tuned for Macy’s upcoming earnings report with other retail giants like Lowe’s (LOW), Best Buy (BBY), and TJ Maxx (TJX).
Investor Events / Global Affairs:
Berkshire Hathaway needs a swimming duck for all that money, U.S. M&A deals are trending back up, and heavy insider trading.
Berkshire Hathaway’s (BRK) $167B Cash Stockpile
Berkshire Hathaway's Q4 revealed a 28% surge in operating earnings, significantly fueled by its insurance operations and investment returns. The period saw an aggressive move in stock repurchases — doubling to $2.2 billion — highlighting Buffett’s confidence in its growth trajectory.
Despite a robust quarter — Warren Buffett pointed out challenges in the railroad and energy sectors. With $167.6 billion in cash reserves by year-end, bolstered by higher interest rates, it will be interesting to see where Buffett deploys funds.
p.s. — here is Warren Buffett’s recent tribute to the late Charlie Munger. You might want to grab some tissues.
M&A Activity Surge + Walmart’s Stock Split
US M&A volume has seen a significant increase, with notable deals including Capital One's (COF) planned acquisition of Discover (DFS). This all-stock deal is valued at approximately $35.3 billion, and comes with a hefty breakup fee of 1.38 billion. Regulatory hurdles remain a concern for both parties — as seen by the government's blockage of JetBlue's (JBLU) attempt to acquire Spirit Airlines (SAVE) earlier this year. This merger makes that airline merger look like child’s play!
As we mentioned last week — Walmart (WMT) has also agreed to buy Vizio (VZIO) for $2.3 billion.
The timing is interesting, as Walmart investors are gearing up for a 3-for-1 stock split. This is its first stock split since a 2-for-1 split in 1999 and (amazingly) its 12th split in the last five decades.
Major Insider Selling… What Do They Know?
Recent Insider trading activity has garnered a loft of attention from everyday investors. Sticking with the same topic above… The Walton Family just sold $4.5 billion worth of Walmart (WMT) ahead of its 3-for-1 stock split.
Each sibling (Jim, Alice, and Rob) sold $1.5 billion, and the trades were reported after market close on Friday (2/23) which raises questions about their outlook.
Major Economic Events:
GDP estimates and the Fed’s preferred inflation gauge both return.
Monday (2/26): Dallas Fed Manufacturing Business Index, Interest Rate Decision from Israel, New Home Sales Data, US Building Permits
Tuesday (2/27): Consumer Confidence, Durable Goods Orders, S&P Case-Shiller Home Price Index (20 cities)
Wednesday (2/28): Advanced Retail & Wholesale Inventories, Advanced U.S. Trade Balance in Goods, US GDP 2nd Estimate
Thursday (2/29): Chicago PMI, Core PCE Index, Pending Home Sales, Personal Income, Personal Spending
Friday (3/1): Construction Spending, Consumer Sentiment, ISM Manufacturing, S&P Manufacturing PMI, University of Michigan’s Final Consumer Sentiment & Inflation Expectations
What We’re Watching:
The government is set to release the second estimate for Q4 U.S. GDP on Wednesday (2/28). Economists expect a +3.3% annualized rate after a +4.9% increase in the prior quarter.
The Core Personal Consumption Expenditures (PCE) Price Index — which is the Fed’s preferred inflation gauge — reports its January outcome this Thursday (2/29). Expectations are set at +2.8% YoY after coming in at +2.9% YoY in December. The markets will watch as a hotter-than-expected PCE could cause one of the largest impacts of the year to rate cut projections.
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Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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