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Earnings, Week of July 16

07/16/2012

Last week initiated the calendar 2012 third earnings release for investors to digest. Six S&P 500® Index (SPX) companies reported their second quarter earnings. As expected the headwinds of a strong U.S. dollar and European recession headlined the results. However, the Friday release of financial heavyweights JPM Morgan Chase (JPM) and Wells Fargo (WFC) were the most impactful for the markets.

 

This week 92 more SPX corporations for the third time this year will release prior quarter’s earnings, offer guidance for the upcoming quarters, and share expectations on earnings conference calls.     

 

Here are the themes I suggest investors pay close attention to, in order of importance:

 

1.      Technology Heavyweights – INTC, IBM, QCOM, GOOG, MSFT

 

      • In the second half of calendar Q2, multiple technology companies warned of slowing demand from the headwinds of Europe and the appreciating U.S. dollar. Pay particular attention to the earnings conference calls as the historically strong Labor Day to Christmas technology season approaches. The most important message will be the capital allocation strategies as the year closes. Dividends and buybacks, will they accelerate?   

 

2.      Financials – C, GS, BAC, PNC, USB

 

      • After last week’s WFC and JPM results, investors should watch for financial results that do not reverse any of the positive momentum established by WFC and JPM. Additionally, I am most interested in the tailwind currently being provided by the Home Affordable Refinance Program (HARP)

 

3.      Dow Industrial Heavyweights – GE, JNJ, KO, VZ

 

 

 

COMPLETE SPX EARNINGS CALENDAR FOR THE WEEK OF JULY 16, 2012

 

Monday, July 16, 2012

 

Cintas Corp

CTAS

Citigroup Inc

C

Gannett Co Inc

GCI

 

 

Tuesday, July 17, 2012

 

Comerica Inc

CMA

CSX Corp

CSX

Fidelity National Information Services Inc

FIS

Forest Laboratories Inc

FRX

Goldman Sachs Group Inc/The

GS

Host Hotels & Resorts Inc

HST

Intel Corp

INTC

Johnson & Johnson

JNJ

Coca-Cola Co/The

KO

Mattel Inc

MAT

Mosaic Co/The

MOS

M&T Bank Corp

MTB

Omnicom Group Inc

OMC

Charles Schwab Corp/The

SCHW

State Street Corp

STT

Wynn Resorts Ltd

WYNN

Yahoo! Inc

YHOO

 

 

Wednesday, July 18, 2012

 

Abbott Laboratories

ABT

American Express Co

AXP

Amphenol Corp

APH

Bank of America Corp

BAC

Bank of New York Mellon Corp/The

BK

BlackRock Inc

BLK

Dover Corp

DOV

eBay Inc

EBAY

F5 Networks Inc

FFIV

Honeywell International Inc

HON

International Business Machines Corp

IBM

Kinder Morgan Inc/Delaware

KMI

Noble Corp

NE

Northern Trust Corp

NTRS

PNC Financial Services Group Inc

PNC

QUALCOMM Inc

QCOM

SLM Corp

SLM

St Jude Medical Inc

STJ

Stanley Black & Decker Inc

SWK

Stryker Corp

SYK

US Bancorp

USB

WW Grainger Inc

GWW

Xilinx Inc

XLNX

Yum! Brands Inc

YUM

 

 

Thursday, July 19, 2012

 

Advanced Micro Devices Inc

AMD

AutoNation Inc

AN

Baxter International Inc

BAX

BB&T Corp

BBT

Capital One Financial Corp

COF

Chipotle Mexican Grill Inc

CMG

Danaher Corp

DHR

Diamond Offshore Drilling Inc

DO

E*TRADE Financial Corp

ETFC

Fifth Third Bancorp

FITB

Freeport-McMoRan Copper & Gold Inc

FCX

Genuine Parts Co

GPC

Google Inc

GOOG

Huntington Bancshares Inc/OH

HBAN

Intuitive Surgical Inc

ISRG

KeyCorp

KEY

Laboratory Corp of America Holdings

LH

Microsoft Corp

MSFT

Morgan Stanley

MS

Nucor Corp

NUE

People's United Financial Inc

PBCT

Philip Morris International Inc

PM

PPG Industries Inc

PPG

Quest Diagnostics Inc

DGX

Safeway Inc

SWY

SanDisk Corp

SNDK

Sherwin-Williams Co/The

SHW

Snap-on Inc

SNA

Southwest Airlines Co

LUV

Textron Inc

TXT

Travelers Cos Inc/The

TRV

Union Pacific Corp

UNP

UnitedHealth Group Inc

UNH

Verizon Communications Inc

VZ

VF Corp

VFC

 

 

Friday, July 20, 2012

 

American Electric Power Co Inc

AEP

Baker Hughes Inc

BHI

CR Bard Inc

BCR

First Horizon National Corp

FHN

General Electric Co

GE

Goodrich Corp

GR

Hudson City Bancorp Inc

HCBK

Ingersoll-Rand PLC

IR

Johnson Controls Inc

JCI

Robert Half International Inc

RHI

Schlumberger Ltd

SLB

SunTrust Banks Inc

STI

Xerox Corp

XRX

 

 

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.