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Key Market Developments to Monitor in the Coming Week

Published by MEXEM Technical Analysis

August 18, 2023 9:44 AM

Published -August 14th, 2023 @ 2:54 PM (GMT+2 )

As the landscape of the global economy continues to evolve, understanding the latest financial updates is more important than ever. Navigating the complex world of finance can be overwhelming, but keeping up-to-date with the significant market movements can empower investors and businesses to make informed decisions. In the following article, we delve into the top 5 vital financial trends and events that have the potential to shape the markets in the upcoming week. From stock market performances to executive moves, we've covered you with the essential news you need to know.

1. The Q3 earnings for major retailers like Walmart, Target, Home Depot, and others are taking center stage

Walmart's (NYSE:WMT) Q2 earnings are set to be released on August 17 2023, with Credit Suisse raising its price target to $180. The stock has seen positive returns in five of the last eight reports, and investors are keenly watching same-store sales, consumer trends, inflation's impact, and Walmart's grocery and pharmacy sectors.
Investors will be looking at same-store sales, any signs of a consumer trade down, how cooling inflation could be impacting margins, and the state of retail crime. Walmart's differentiation in grocery and pharmacy will also be in focus.

  • Stock Performance: Looking back at Walmart's last eight reports, the stock enjoyed five positive next-day returns, averaging a swing of 3.9%. The options pits are pricing in a 4.1% move this time around.

Home Depot (NYSE:HD), reporting earnings this week, previously missed revenue expectations and lowered its annual outlook. Its stock was downgraded amid a weakened housing market, and there's a focus on consumers' shift towards smaller home projects.

  • Stock Performance: The home improvement chain's stock was downgraded by Telsey Advisory Group amid a housing market weakened by falling home sales and mortgage increases.

Target's (NYSE:TGT) earnings are also expected this week, with a significant market cap loss and a 52-week low in shares. Investors are focused on same-store sales, consumer behavior, inflation's effect on margins, and potential impacts from the company's Pride Collection backlash.

  • Stock Performance: Target saw its market cap lose $15.7 billion as shares approached a 52-week low.

2.Cisco Systems: Projected to Report Positive Earnings Growth in August

Cisco Systems (NASDAQ:CSCO) is poised to report positive earnings growth for August with expectations of  positive report earnings growth with a consensus EPS estimate of $0.84, representing a YoY growth of 16.67%. The company's stock appears to be undervalued, with a projected fair value of $75.19. 

Key Insights:
  • Projected Fair Value: The projected fair value for Cisco Systems is $75.19 based on a 2 Stage Free Cash Flow to Equity model.
  • Undervaluation: Cisco Systems is estimated to be 28% undervalued based on the current share price of $53.79.
  • Analyst Price Target: The analyst price target for CSCO is $56.78, which is 24% less than the estimate of fair value.

3.Visa's Robust Quarterly Earnings: Revenue Growth and Strong Financial Indicators

Visa's (NYSE:V) impressive quarterly earnings, strong financial indicators, and positive analyst ratings make it an attractive investment option. The company's consistent growth and market dominance further reinforce its position as a leading player in the credit-card processing market.
Earnings per share (EPS) of $2.16, surpassing estimates by $0.05, and revenue of $8.12 billion, exceeding expectations. The company marked an 11.7% growth in revenue compared to the same quarter last year, reflecting its financial prowess with a return on equity of 49.42% and a net margin of 51.94%.

Insider trading and stock performance were notable, with shares sold by key insiders and a stock opening at $238.99. Visa's market capitalization reached $447.70 billion, and its PE ratio stood at 30.33. Future projections are promising, with Zacks Research predicting earnings of $8.66 per share for the year, and various analysts rating the stock as a “Moderate Buy” with a target price of $270.32.

Additionally, Visa announced a quarterly dividend of $0.45 per share, yielding 0.75%. Overall, the report underscores Visa's robust earnings, growth, and positive outlook, making it an attractive investment option.

4. Dow Jones: Outperforming Other Major Indexes with Positive Growth

The Dow Jones Industrial Average (DJIA) showed mixed results, with a slide at the open but a recovery to close up about 0.3%. The Dow was the only index to post gains for the week, rising 0.6%. This was in contrast to the S&P 500 and Nasdaq, which both lost ground for the second week in a row, falling 0.3% and 1.9%, respectively. The report also highlighted that the Producer Price Index (PPI) rose more than expected, and Chevron's strong performance helped lift the Dow.

As of August 13, 2023, stock futures for the Dow Jones Industrial Average advanced 86 points, or 0.2%, as Wall Street looked to shake off a rough start to August. The report also noted that the Dow Jones Industrial Average gained 0.62% for its fourth positive week in five. This performance was contrasted with the S&P 500 and Nasdaq Composite, which fell 0.3% and 1.9%, respectively.

Overall, the Dow Jones showed resilience and positive growth in August, outperforming other major indexes. The gains in the Dow were driven by various factors, including strong performances by individual companies like Chevron and a broader economic context marked by inflation data and consumer sentiment.

5. Deere & Company's Strong Growth Anticipated Amid Robust Market Performance

Deere & Company (NYSE:DE) is set to report its Q3 fiscal 2023 earnings on August 18, 2023, with promising expectations. The Zacks Consensus Estimate predicts an EPS of $8.12, a 31.8% growth from last year, and total revenues of $14.2 billion, a 9.3% year-over-year increase. The company has a history of surpassing estimates, with a trailing four-quarter earnings surprise of 7.2%.

A positive Earnings ESP of +2.03% and a Zacks Rank of 3 suggest potential earnings beat for the third quarter. Key factors influencing this quarter include favorable agricultural commodity prices, high production costs, and favorable price realization. Segmental projections show growth across Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services.

Despite high costs and unfavorable foreign currency exchange effects, Deere's shares have gained 20.3% in the past year, outpacing the industry's growth. Overall, the anticipation for Deere's Q3 earnings report is positive, reflecting growth in various segments and a robust market performance.


As the investment landscape unfolds with anticipation, major retailers like Walmart, Target, and Home Depot are gearing up for pivotal Q3 earnings, while Cisco Systems is poised to report positive growth, reflecting a potential undervaluation. Visa's impressive quarterly earnings and strong financial indicators further add to the intrigue.
The Dow Jones, showcasing resilience and positive growth, stands out amid other major indexes, and Deere & Company's anticipated strong growth signals robust market performance.

Investors and market enthusiasts, take note: these multifaceted reports are more than mere numbers; they could be the harbingers of exciting opportunities and trends in a dynamic and ever-evolving market.

The information on is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.


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