After a brief stumble, the stock market regained traction, with the S&P 500 and Nasdaq notching a strong week and IBD's Stock market Exposure Guide returned to its highest level.
A new EV announcement heralded by Ford (F) as a Model T moment for the company has set high expectations for Monday. Economic data could easily move market, which are on a hair trigger for inflation/rate cut news. Dow Jones networking heavyweight Cisco Systems (CSCO) heads up the week's blue chip earnings roster. Cloud infrastructure leader CoreWeave (CRWV), fast-moving defense/aerospace play Elbit Systems (ESLT) and a handful of heavy-duty China-based names led by Tencent Holdings (TCEHY) make for a well-rounded week of earnings news.
Some recent daily swings in the leading indexes, and especially individual stocks, has made new buys a little more tricky. AppLovin (APP), Lam Research (LRCX), Las Vegas Sands (LVS), Google-parent Alphabet (GOOGL) and Walmart (WMT) are a diverse group of large-cap stocks that have cleared buy points. AppLovin made a powerful breakout, and is now slightly extended. Google and Walmart are in buy zones after clearing traditional buy points. Lam Research flashed an early entry as it rebounds from its 10-week line. Las Vegas Sands has forged a shelf within a buy zone.
New inflation readings arrive Tuesday with the July consumer price index and Thursday with the producer price index. After the rate of inflation ticked up in June, the question is whether it can resume its longer-term easing trend. Tariffs so far haven't led to price spikes, but more are now in place. Consensus CPI estimates see a 0.3% increase for the month and a 2.7% rise year over year. Core CPI is seen up 0.2% on the month and 2.9% annually, Econoday says. Wholesale prices are expected to be flat from June and up 2.3% annually. Core PPI also is seen flat for July, up 2.6% year over year. On Friday, July retail sales should show a 0.6% increase, up 0.5% excluding vehicle sales.
Cisco Systems rolls off a big week into its fiscal fourth quarter earnings late Wednesday. Rival Arista Networks (ANET) reported a strong quarter and upped its guidance. For Cisco, analysts project a 12% EPS gain, with revenue growing 7%. The enterprise market remains key for Cisco and analysts will look for details on companies are upgrading computer networks for AI applications. Also key: an update on financial metrics from new artificial intelligence products. Cisco disclosed orders on AI products but not revenue. Software and security firm Splunk, acquired last year, could provide revenue upside. Wall Street models 5% revenue growth for Cisco in fiscal 2026. The Dow Jones stock clocked a 7% gain for the week through Friday, and is up 21% year to date.
Stock Of The Day
U.S. investors receive a dose of China-based perspective on the U.S. trade war in the coming week as multimedia juggernaut Tencent Holdings reports second-quarter results Wednesday. Others due to report include China's largest retailer, JD.com (JD), Vipshop Holdings (VIPS), NetEase (NTES) and social media giant Weibo (WB), all on Thursday.
Ford will announce its new EV platforms at an event in Kentucky on Monday, with CEO Jim Farley claiming it will be a "Model T moment" for the automaker. Farley has promised affordable, profitable mass-market EVs. The unveiling follows Ford's July 30 report that its electric vehicle division lost $1.33 billion in Q2, even as its EV revenue soared to $2.4 billion. Morgan Stanley's Adam Jonas wrote on July 30 he expects Ford to "put a 'brave face'" during Monday's presentation but "investors remain skeptical."
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Defense earnings continue next week. Mercury Systems (MRCY) reports Q4 results late Monday. Analysts expect modest declines, but will look for details on July's expanded agreement with a top EU defense contractor. MRCY stock trades below a 54.32 buy point for a flat base. Israel-based defense contractor Elbit Systems reports on Wednesday. Analysts expect a 37% earnings jump over a 16% revenue gain. Bank of America launched coverage July 24 with a buy rating and a 500 price target.
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CoreWeave reports Q2 earnings after Tuesday's market close. CoreWeave stock surged on its March IPO, but cooled on news it would acquire Core Scientific. Analysts want to know whether the deal will close amid shareholders resistance, and when revenue from OpenAI will kick in. CoreWeave rents servers mainly to artificial intelligence model builders and app developers. Microsoft is its biggest customer. CoreWeave rival Nebius Group (NBIS) reported strong results on Thursday. Analysts also will look for details on pricing and margin trends amid fierce competition and a capital spending update on data centers.
Telephone and Data Systems (TDS) reports Q2 earnings on Monday. Analysts predict a 1-cent adjusted profit, improving from a 13-cent loss a year earlier. Revenue is expected to fall 6% to $1.168 billion. TDS shares are up 12% year to date, after rallying 86% in 2024.
Lumentum Holdings (LITE) reports fiscal Q4 earnings early Tuesday. Analysts expect adjusted EPS of 81 cents, jumping over 1200% from a year earlier, with revenue rising 52% to $470 million. In June, the company updated its 2025 outlook in a regulatory filing. Lumentum said it expects to reach a $500 million revenue target in fiscal Q1 2026, a quarter earlier than forecast.
Brinker International (EAT) reports Q4 results early Wednesday. FactSet expects the Chili's parent to report a 53% increase in earnings to $2.47 per share on 19% revenue growth to $1.44 billion. EAT stock is up 20% this year, trading between its 50- and 200-day lines.
Advance Auto Parts (AAP) checks in early Thursday, with its shares sitting on an 80% rebound since early April. The company preannounced Q2 results along with a $1.5 billion debt offering on July 25. But analysts expect a steep earnings upturn to begin in Q3, so balance-sheet details will be key.
Stantec (STN), a Canadian infrastructure consultant, reports Thursday. Analysts largely expect a "steady as she goes" report, but the company this month closed its acquisition of Washington D.C.-based Page, making it a leading engineering name and the second largest architecture firm in the U.S. Shares are up 21% from an early May breakout.
Tapestry (TPR) reports Q4 results Thursday morning. Analysts predict the parent of Coach and Kate Spade will report a 10% increase in earnings on 5.5% revenue growth. TPR stock is extended from a mid-June breakout and trading at record highs, sitting on a 66% gain so far this year.
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