Market Overview

The Week Ahead: Full Slate of Economic Data; Earnings From Cisco, Wal-Mart and Deere

A host of economic data is set to be released for the week beginning May 13. Investors will also continue to be focused on corporate earnings reports from a number of leading companies. Heading into next week, the major averages are sitting near new highs and confidence on Wall Street has been steadily gaining momentum.

Among the companies that are set to release quarterly financial results next week are Take-Two Interactive (NASDAQ: TTWO), Agilent (NYSE: A), John Deere (NYSE: DE), Macy's (NYSE: M), Cisco (NASDAQ: CSCO), AutoDesk (NASDAQ: ADSK), and WalMart (NYSE: WMT).

On the economic front, a spate of domestic reports are set to be released starting on Monday with retail sales figures. On Tuesday, PPI data will be released along with industrial production and capacity utilization. Thursday will see initial jobless claims data along with CPI, housing starts and the Philadelphia Fed manufacturing figures. The full week of economic reports will be capped off on Friday with May data for the University of Michigan Consumer Confidence Index and Leading Indicators for April.

Earnings

On Monday after the closing bell, video-game publisher Take-Two Interactive is expected to release its quarterly financial results. Heading into the report, Wall Street analysts have consensus earnings per share estimates of $0.23 versus a loss of $0.60 in the year ago period. Sales for the quarter are expected to be up more than 89 percent to $280.36 million.

Ahead of Monday's key report, analysts at Wedbush published a client note suggesting that the company is likely to report results at or above the high end of its guidance. The firm is also looking for Take-Two to provide fiscal 2014 guidance which is ahead of current consensus expectations. Wedbush reiterated its Outperform rating on the stock and $19.00 price target.

Analysts at Sterne Agee also wrote in a research note that Take-Two is likely to exceed March quarter expectations. The firm reiterated its Buy rating on the stock and $17.00 price target. The analysts cited the upcoming console upgrade cycle as a positive catalyst for TTWO as well as other video-game publishers.

On Wednesday afternoon leading networking name Cisco Systems (NASDAQ: CSCO) is set to release its quarterly results. Currently, analysts are projecting that the company will earn $0.49 per share on revenue of $12.18 billion. In the year ago quarter, Cisco reported EPS of $0.48 on revenue of $11.59 billion.

In a preview report released on May 9, analysts at Deutsche Bank reiterated their Buy rating on the shares and $24.00 price target. They wrote that for the third-quarter the company is likely to report results that are in line or slightly below expectations. Nevertheless, they like the stock long-term.

The Deutsche Bank analysts wrote that "Our Buy rating reflects conviction in potential for upside to the FY14+ view from Cisco's newer switching, routing, mobility, security platforms, and services ramping into attractive software-oriented product cycles." They also noted that competition in key businesses is weak.

On Thursday after the closing bell Autodesk (NASDAQ: ADSK) will be releasing its quarterly earnings and sales figures. Heading into the report, analysts have consensus EPS estimates of $0.45 for the company. This compares to the $0.47 per share that Autodesk reported in the year ago quarter. Revenue is expected to be down 0.90 percent to $583.40 million.

Analysts at Goldman Sachs released an earnings preview for the company on May 9. The firm sees "near-term conservatism before acceleration begins" at Autodesk. They wrote, "we expect ADSK to post results in line with consensus based on our field work as well as 1) reasonable revenue guidance, 2) our regional revenue scenario analysis, and 3) our view that FX is not likely to have a meaningful negative impact relative to guidance given the company's four-quarter rolling hedge." Goldman Sachs has a Buy rating on the stock and a $45.00 price target.

Economic Reports

The week of May 13-17 is full of economic data. On Monday, U.S. retail sales for April are expected to fall 0.3 percent versus a decline of 0.4 percent in the prior month. On Tuesday, German ZEW economic sentiment figures are expected to show an increase to 38.3.

German GDP figures are due out on Wednesday with expectations for a quarterly increase of 0.3 percent versus a contraction of 0.6 percent last quarter. In the United States, core PPI is expected to be up 1.7 percent on a year over year basis. Japanese quarterly GDP figures will also be released on Wednesday.

Thursday's key reports include CPI and core CPI in the United States and the Philadelphia Fed Manufacturing Index. Year over year core CPI is expected to rise 1.8 percent while CPI is expected to rise 1.3 percent versus last year.

On Friday, economists are expecting the University of Michigan Consumer Sentiment Index to rise to 78.0 for May versus 76.4 in April. The Conference Board's Index of Leading Indicators is expected to show a rise of 0.2 percent for April.

Weekly calendar

Monday

  • Earnings from:Stratasys (NASDAQ: SSYS), InterOil (NYSE: IOC), Take-Two (NASDAQ: TTWO)
  • U.S. retail sales and core retail sales

Tuesday

  • Earnings from: Agilent (NYSE: A), Photronics (NASDAQ: PLAB)
  • German ZEW economic sentiment, U.S. import price index, Redbook

Wednesday

  • Earnings from:Arctic Cat (NASDAQ: ACAT), Deere (DE), Macy's (NYSE: M), Cisco Systems (NASDAQ: CSCO), Netease.com (NASDAQ: NTES), Skechers USA (NYSE: SKX)
  • German GDP, French CPI, Swiss PPI, U.S. PPI, U.S. capacity utilization and industrial production, Empire State Manufacturing Index, Japanese GDP

Thursday

  • Earnings from:Kohl's (NYSE: KSS), Alkermes (NASDAQ: ALKS), Wal-Mart (NYSE: WMT), Aruba Networks (NASDAQ: ARUN), J.C. Penney (NYSE: JCP), Brocade (NASDAQ: BRCD), Autodesk (NASDAQ: ADSK), Nordstrom (NYSE: JWN), Sina (NASDAQ: SINA)
  • Eurozone CPI, U.S. CPI, U.S. housing starts, Philly Fed,

Friday

  • Earnings from: Brown Shoe (NYSE: BWS), Donaldson (NYSE:DCI, and Stage Stores (NYSE: SSI)
  • Michigan Consumer Sentiment, Leading Indicators, Canadian CPI

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