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The Federal Reserve meets next week with traders nearly certain that a 25-point rate hike will be announced. The Fed’s current thinking on the timing of more rate hikes will be closely watched. Key economic reports include a producer price report that could show a double-digit gain from a year ago and the update on retail sales for February. FedEx (NYSE:FDX) is the most notable company to head off into the earnings confessional. Keep an eye on the London Metal Exchange to see if the nickel market (LN1:COM) is reopened and other commodities are also expected to trade with volatility off the latest Ukraine-Russia headlines. On the lighter side of things, the NCAA basketball begins next week with sports betting operators like DraftKings (NASDAQ:DKNG), BetMGM (NYSE:MGM), Caesars Sportsbook (NASDAQ:CZR) and FanDuel (MGM, OTCPK:GMVHF) looking for a huge amount of betting action.
Earnings spotlight: Monday, March 14 Vail Resorts (NYSE:MTN).
Earnings spotlight: Tuesday, March 15 Caleres (NYSE:CAL) and Dole plc (NYSE:DOLE).
Earnings spotlight: Wednesday, March 16 Jabil (NYSE:JBL), Lennar (NYSE:LEN), Williams-Sonoma (NYSE:WSM) and ZTO Express (NYSE:ZTO).
Earnings spotlight: Thursday, March 17 Dollar General (NYSE:DG), FedEx (FDX), GameStop (NYSE:GME) and Torrid (NYSEMKT:CRV).
Earnings spotlight: Friday, March 18 On Holding (NYSE:ONON).
IPO and SPAC watch: IPO activity tracking has been down more than 70% so far this year compared to last year, while follow-on offerings are 76% lower and new SPACs down 88%. However, the IPO market returns to action next week with Akanda (AKAN) and Genius Group (GNS) both slated to start trading, while new SPACs that could start trading include Peter Thiel-backed Bridgetown 2 Holdings taking Singapore online real estate firm Property Guru and FirstMark Horizon Acquisition (NYSE:FMAC) taking U.S. fixed wireless braodband provider Starry public. Notable IPO lockup expirations on March 14 include Thoughtworks Holding (NASDAQ:TWKS), Dutch Bros (NYSE:BROS), Sportradar Holding (NASDAQ:SRAD) and Dice Therapeutics (NASDAQ:DICE).
Projected dividend increases: Companies forecast to boost their quarterly dividend payout include World Fuel Services (NYSE:INT) to $0.14 from $0.12, Qualcomm (NASDAQ:QCOM) to $0.75 from $0.68, Dollar General (DG) to $0.46 from $0.42, Fulton Financial (NASDAQ:FULT) to $0.15 from $0.14, Shoe Carnival (NASDAQ:SCVL) to $0.075 from $0.070, Equity Residential (NYSE:EQR) to $0.6375 from $0.6025 and CareTrust REIT (NASDAQ:CTRE) to $0.28 from $0.265.
FOMC meeting: The policy-making committee of the Federal Reserve is scheduled to meet March 15-16 to a large expectation that a 25-point rate increase will be announced. Ahead of the meeting, Moody’s maintained an assumption that the Federal Reserve raises the target range for the fed funds rate four times this year at 25 basis points a clip. Markets are pricing in even more hikes, just short of seven hikes over the next 12 months. Per Chairman Jerome Powell’s testimony to Congress last week, the FOMC appears to be closing in on a plan for balance sheet runoff. UBS says the Fed wants a process that is fast, but controlled, and does not risk market stress. “We think the median projection for 2022 will be revised from three hikes in December, to six or seven in March. By the end of 2024 we expect the median assumption for the federal funds rate will be around 3.0% to reflect a ‘whatever it takes attitude’ in taking inflation down.
FedEx earnings preview: FedEx (FDX) is due to report earnings on March 17 to expectations for revenue of $23.6B and EPS of $4.47 to be reported. Some analysts shifted gears this week on FDX to warn on an earnings miss with pandemic tailwinds seen being offset by headwinds from Omicron, weather and labor challenges. FedEx is also noted to be lapping a particularly challenging quarter and is tipped to potentially be cautious with its guidance due to the macroeconomic backdrop.
Corporate events: Mereo BioPharma Group plc (NASDAQ:MREO) will host a virtual R&D Day on March 14 to review the company’s alvelestat (MPH966) program. The three-day Adobe Summit begins. Featured speakers include Adobe (NASDAQ:ADBE) Chairman/CEO Shantanu Narayen, Nike (NYSE:NKE) CEO John Donahoe and Walgreen Boots Alliance (NASDAQ:WBA) CEO Rosalind Brewer. TransUnion (NYSE:TRU) and Creditcorp (NYSE:BAP) also have investor events scheduled for March 15. The following day Floor & Decor (NYSE:FND), Box (NYSE:BOX) and FueCell Energy (NASDAQ:FCEL) have key investor events scheduled. All three are being circled by analysts as potential share price catalysts.
Conference schedule: The JPMorgan Industrials Conference looks to be the biggest conference of the week with transportation companies CSX (NASDAQ:CSX), JetBlue Airways (NASDAQ:JBLU) and Alaska Air Group (NYSE:ALK) all lined up as presenters. Other notable conferences include the 34th Annual Roth Conference, the Deutsche Bank Media, Internet & Telecom Conference, the Barclays Global Healthcare Conference, the Oppenheimer Annual Healthcare Conference and the William Blair Tech Innovator’s Conference.
Annual meetings: Starbucks (NASDAQ:SBUX) holds its annual meeting on March 16. The coffee giant is likely to outline its post-pandemic recovery expectations and update on the suspension of the business in Russia. The Starbucks board of directors is asking shareholders to vote against a proposal that would require the company to produce annual reports on harassment and discrimination in the workplace. Starbucks has noted that it is already active in addressing workplace harassment and discrimination via extensive workplace training and established process for reporting harassment and discrimination. Shares of SBUX are down 34% from their 52-week high.
Barron’s mentions: The publication breaks down the upside for stock splits for large companies like Amazon (NASDAQ:AMZN) even if the action is more symbolic than material. “We expect that the stock split should increase the accessibility of shares to a broader array of potential investors, and note that the split should allow for potential inclusion of Amazon shares in the Dow Jones Industrial Average,” notes Wells Fargo analyst Brian Fitzgerald on Amazon. Other companies with a high-flying share price that could be ripe for a split include Booking Holdings (NASDAQ:BKNG), AutoZone (NYSE:AZO), Chipotle Mexican Grill (NYSE:CMG), Tesla (NASDAQ:TSLA), BlackRock (NYSE:BLK) and O’Reilly Automotive (NASDAQ:ORLY).
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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