U.S. stocks closed at record highs last week, despite multiple concerns—coronavirus cases are rising, there are worries that growth is slowing, and a rate hike is possible. Here are the stocks you should watch this week.
Whereas the earnings season is almost over, there are still some notable earnings to be released this week. We’ll also get several data points from U.S. and global markets.
Stocks to watch this week amid more earnings announcements
Zoom Video Communications is set to release its fiscal 2022 second-quarter earnings on Aug. 30 after markets close. Analysts expect Zoom to report revenue of $990 million, which is at the top end of the company’s guidance. The release may also offer insights into “stay-at-home” stocks' growth outlook.
Broadcom is set to release its fiscal 2021 third-quarter earnings on Sep. 2, and will be the last chipmaker to do so this season. The sector has attracted a lot of attention from investors amid the global chip shortage. Broadcom stock is up almost 17 percent this year and is sitting at a record high. The earnings release could impact the stock as well as other chipmakers'.
Watch for vehicle sales data
We’ll get a lot of data points from automakers—both legacy and EV (electric vehicle) companies. Ford is set to release its Aug. 2021 sales data on Sep. 2. The release could show how the chip shortage situation is impacting the company’s production, and how the company’s EV plans are playing out.
We’ll also get Aug. 2021 delivery numbers from Chinese EV companies NIO, Li Auto, and Xpeng Motors. EV stocks have been under pressure in 2021 after their surge last year. The delivery numbers may shed some light on growth and any impact from the global chip shortage.
In Jul. 2021, Li Auto’s and Xpeng's deliveries were higher than NIO's. This next delivery report may reveal whether it was just a blip or Li Auto can maintain its strength.
Economic calendar for the week of Aug. 30, 2021
This week’s economic calendar is busy. For insights into the health of the housing market, we’ll get pending homes sales data on Aug. 30, followed by construction spending on Sep 1.
Toward the end of the week, we’ll get nonfarm payroll data. Dow Jones analysts estimate that the U.S. economy added 750,000 jobs in Aug. 2021, and that unemployment fell to 5.2 percent.
We’ll also get PMI (purchasing managers’ index) data for the U.S. and other countries, which will give us an idea of the global economy's health. China’s PMI release will be particularly important, given the world’s second-largest economy's recent rise in coronavirus cases.
Also to watch for are regulatory developments in China. JD.com and Xpeng think the changes will help the industry in the long term, but markets don’t seem to agree. And just when markets thought that China was done with its crackdowns, Reuters reported last week that the Chinese city of Tianjin had ordered companies controlled by the municipality to move their data from private companies such as Alibaba and Tencent to state-owned companies.
In premarket trading on Aug 30, Affirm stock was up after the BNPL (buy-now-pay-later) company announced a partnership with Amazon. Select Amazon customers will be able to pay using Affirm’s flexible payment options. Root Insurance stock was another major premarket mover.