Investing.com | May 24, 2020 02:43
Optimism around a potential coronavirus vaccine and the reopening of the U.S. economy boosted the stock market to another winning week. On a weekly basis, the Dow climbed 3.3%, the S&P 500 advanced 3.2% and the NASDAQ Composite rose 3.4%. These positive catalysts are likely to provide an additional lift to the market, which at this point, is ignoring the rising U.S.-China tensions.
On Friday, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, told NPR that Moderna's (NASDAQ:MRNA) vaccine data looked “promising,” and he remains “enthusiastic” about the economy reopening.
During the coming trading week, which is one day shorter due to the Memorial Day holiday on Monday, we’re focusing on the following three stocks:
Salesforce.com (NYSE:CRM) will be reporting its fiscal 2021, first-quarter earnings on Thursday, May 28 after the market closes. The company, which sells enterprise software and cloud-based services to corporate clients, is forecast to report more than $4.86 billion in revenue and $0.69 of earnings per share.
One of the biggest drivers of future growth for Salesforce is the company’s acquisition of Tableau Software for $15.3 billion last year. The all-stock deal was Salesforce’s largest transaction ever, part of its move to expand into the business intelligence arena.
According to the company, the Tableau deal will boost sales and propel the software maker more deeply into competition with segment giants Microsoft Corporation (NASDAQ:MSFT) and Oracle (NYSE:ORCL), both of which offer business intelligence tools.
Salesforce.com shares are up more than 9% for the year, after recovering from the coronavirus-induced plunge. They closed on Friday at $177.85, gaining 1.48% on the day.
The retail sector will once again come under scrutiny on Thursday when Costco Wholesale (NASDAQ:COST) reports its fiscal 2020 third quarter results after the close. Analysts are expecting $2.71 a share in profit on sales of $49.97 billion.
Costco, along with Walmart (NYSE:WMT), has been one of the primary beneficiaries of pandemic-related consumer stockpiling in recent weeks as housebound shoppers scoop up toilet paper, cereal and other everyday essentials while sheltering in place.
For the 35 weeks ended May 3, Costco reported net sales of $107.64 billion, an increase of 7.8% from $99.89 billion during the similar period last year.
That gain shows the retailer continued to benefit from the coronavirus-induced demand for consumer goods despite the limited services or closures of entire departments. These limitations could still hurt earnings and future growth. Costco shares are up 3% for the year, closing at $302.43 on Friday.
Dell Technologies (NYSE:DELL) will also release its fiscal Q1 2021 results on Thursday, May 28, after the market close. Analysts expect $0.99 EPS on $20.66 billion in revenue.
Bloomberg reported last week that Dell will discontinue contributions to employees’ 401(k) retirement plans under a matching program, beginning June 1 due to the contracting economy and shrinking spending on information technology.
The Round Rock, Texas-based company hasn’t released results since February, so it’s unclear how high a toll the pandemic has taken on the hardware maker. Software maker VMware (NYSE:VMW), of which Dell owns more than 80%, also reportedly cut salaries, executive pay and 401(k) matches in response to the faltering global economy.
Shares of the information technology company are down 16% for the year. Dell closed on Friday at $43.07, down about 3%.
The company, which was already facing soft IT spending before COVID-19 hit the major economies this year, could further downgrade its sales forecast.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.