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- 👉 The Investing Week Ahead: Planes, Cybertrucks, & Rollercoasters
👉 The Investing Week Ahead: Planes, Cybertrucks, & Rollercoasters
& beer...
Happy (almost) Independence Day.
The work week is short, the market is closed on Thursday, and Friday will be one of the least productive days of the entire calendar year.
Below is everything that you need to keep an eye on before we send our next update on Monday, July 8th!
Key Earnings Announcements:
Constellation Brands is probably the only earnings report you’ll care about this week (details below).
Monday (7/1): N/A
Tuesday (7/2): MSC Industrial Direct Co, Polestar Automotive, Radius Recycling, Simulations Plus
Wednesday (7/3): Constellation Brands
Thursday (7/4): Markets are closed for 4th of July
Friday (7/5): N/A
What We’re Watching:
Constellation Brands, (+6.4% YTD) is the only S&P 500 company reporting earnings this week.
The wine, beer and spirits company showed strong financial performance in Q1 of 2024 — with a +5% increase in net sales for its Beer segment, driven by strong performance from Modelo Especial and Corona Extra. The Wine and Spirits segment saw a -2% decline in net sales — resulting in operating income of $181.9 million, due to competitive pressures and changing consumer preferences.
Despite an operating loss of -$32.9 million in Corporate Operations, the company is well-positioned for future success in the growing $1.49 trillion global alcoholic beverages market — projected to reach $1.75 trillion by 2025.
"We continue to see strong performance in our core beer business, driven by the continued popularity of Modelo Especial and Corona Extra. Our focus on premiumization and innovation across our wine and spirits portfolio is also yielding positive results. We remain committed to executing our strategy to drive long-term growth and shareholder value."
— Bill Newlands, Constellation Brands CFO
Investor Events / Global Affairs:
Whether you’re driving, flying, or screaming on a roller coaster — there’s an update for you!
Tesla Q2 Deliveries
Tesla is expected to report a decline in Q2 deliveries — analysts are lowering their estimates due to concerns over consumer demand and registration data from Europe and China.
Barclays forecasts 415,000 deliveries — an -11% annual decline — while RBC Capital Markets and UBS estimate 410,000 and 420,000 vehicles. For context, Tesla delivered 386,810 vehicles in Q1 and 466,140 vehicles in Q2 last year.
The company's highest quarterly delivery was 484,507 units in Q4 2023. Analysts suggest investor focus may shift towards Tesla's upcoming Robotaxi event — influencing long-term outlooks rather than immediate Q2 results.
In addition to Tesla's deliveries report, updates are expected from other electric vehicle makers such as NIO, XPeng, Li Auto, Rivian, Lucid Group, and Polestar.
Quarterly sales reports from traditional automakers like General Motors, Ford Motor, Honda Motor, and Toyota Motor will also be closely monitored. Tesla and many EV manufacturers have faced a challenging 2024, with modest delivery expectations and recent negative press regarding quality control issues.
Six Flags + Cedar Fair = FUN
Cedar Fair (FUN) and Six Flags (SIX) are set to finalize their merger on July 1 — which will operate under the name of Six Flags Entertainment Corporation and trade under ticker symbol FUN — starting July 2.
The combined company will be headquartered in Charlotte, North Carolina, with Cedar Fair President & CEO Richard Zimmerman continuing in his role and Six Flags President & CEO Selim Bassoul serving as executive chairman. This merger, with an enterprise value of about $8 billion, aims to enhance financial flexibility and drive future growth through investments in new attractions and technologies.
The leadership team, mostly consisting of current Cedar Fair executives, will lead the newly combined company. This merger brings together two iconic North American amusement park companies, promising improved park offerings and increased guest satisfaction.
“Our enhanced financial flexibility will enable us to invest in new rides, attractions, food and beverage options, and state-of-the-art consumer technologies, ensuring continuous improvement and innovation, and that each park visit is more exciting and memorable than the last.”
— Richard Zimmerman, CEO of Cedar Fair Entertainment Corp.
Boeing (BA) Awaits DOJ Decision AND Makes a $4.7B Acquisition
Boeing is awaiting a decision from the DOJ by July 7 on whether it will face criminal charges related to a January door plug blowout on a 737 Max 9 or reach a settlement.
This decision follows allegations that Boeing violated a 2020 deferred prosecution agreement by misleading regulators, which led to two catastrophic 737 Max crashes. Prosecutors and reports have suggested mixed outcomes, with possibilities ranging from criminal charges to negotiated settlements, potentially including a corporate monitor.
The decision carries high stakes for Boeing, as a criminal conviction could severely impact its operations, finances, and reputation — while it also deals with production slowdowns and leadership changes.
Amidst all of the legal madness — Boeing has also agreed to acquire Spirit AeroSystems (SPR) for $37.25 per share in an all-stock deal, valuing the company at over $4.7 billion. With debt — the transaction is worth approximately $8.3 billion.
Spirit also entered a binding term sheet with Airbus (EADSY) for Airbus to acquire some Spirit assets that support its programs.
Boeing aims to gain more control over its supply chain through this acquisition amid ongoing safety issues. This move reverses Boeing's 2005 spinoff of Spirit AeroSystems as a separate publicly traded company to cut costs.
Major Economic Events:
U.S. jobs data is back in focus.
Monday (7/1): Construction Spending, ISM Manufacturing, S&P Final Manufacturing PMI
Tuesday (7/2): Auto Sales, Fed Reserve Chair Jerome Powell speech in Portugal, Job Openings
Wednesday (7/3): ADP Employment, Factory Orders, Initial Jobless Claims, ISM Services, Minutes of Fed’s June FOMC Meeting, New York Fed President John Williams speech in Portugal, S&P Fnal US Services PMI
Thursday (7/4): Markets are closed for 4th of July
Friday (7/5): US Unemployment Rate, US Employment Report, US Hourly Wages, New York Fed President John Williams speech in India
What We’re Watching:
The U.S. Bureau of Labor Statistics reported that job openings remained relatively stable at 8.1 million on the last business day of April.
Similarly, the number of hires and total separations showed little change over the month — staying at 5.6 million and 5.4 million, respectively.
I like viewing this monthly Job Cuts Tracker to keep up to date with layoffs/cuts in addition to our other job data. We’ll learn much more about the labor market this week — and it’s one of the few things that will be in the spotlight throughout the holiday.
The May U.S. Job report is set to be released while most Americans aren’t paying attention on Friday. Economists are predicting an addition of +180,000 jobs to the economy and an unchanged unemployment rate of 4.0%.
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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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