1. Walmart earnings: On Tuesday, Walmart will release its fourth quarter earnings report.
Walmart is on a tear lately, exceeding analysts’ profit expectations over the past four consecutive quarters, But Walmart is facing fierce competition from e-commerce retailers like Amazon.
That’s why investors will be closely monitoring Walmart’s progress in integrating e-retailer Jet.com. They’ll also want to know the impact of Walmart’s recently launched free two-day shipping program to compete with Amazon Prime.
A negative omen: Berkshire Hathaway sold off the majority of its Walmart stock last week. Despite that blow, analysts still say to hold on to your Walmart stock for now.
2. Tesla earnings: Elon Musk’s electric car company will report its fourth quarter earnings on Wednesday
Tesla’s stock has risen more than 25% so far in 2017 and up more than 50% in the past three months. Investors are eager to hear more about the new Model 3 — a more affordable, mass market electric car that Tesla plans to launch widely later this year.
Some analysts expect Tesla to report a loss after the company missed its 2016 vehicle sales goal. It set a goal to deliver at least 80,000 vehicles but failed. Investors are also nervous that Tesla’s plan to buy SolarCity, a solar energy service, would diverge from its primary role as an automaker.
However, if oil prices start to rise again, there may be a stronger demand for electric cars – making Tesla’s new model 3 a frontrunner for cost-conscious consumers.
3. Nordstrom earnings: On Thursday, the luxury department store will roll out its end-of-year financial results.
Donald Trump slammed Nordstrom on Twitter after it dropped Ivanka Trump’s clothing line. The company said this decision was due to the brand’s declining sales. After Trump’s tweet, the retail chain’s stock price climbed more than 7%. It was a welcome boost for Nordstrom, which like many department stores, has been struggling to compete with online retailers.
4. Will the Trump rally continue?: The stock market has been performing well ever since Trump took office. The Dow and S&P 500 are at record highs. Investors will be curious to see if the stocks can keep it up next week.
Investors are hoping that Trump can lower corporate taxes. That might encourage American companies to invest more, open more plants and buy more companies. Janet Yellen has also expressed confidence in the U.S. economy by raising rates in December and hinting that more rate hikes will come this year.
3. Coming this week:
Tuesday – Walmart, Macy’s, Home Depot earnings
Wednesday – Tesla, Fitbit earnings; CPAC begins
Thursday – Gap, Kohls, Nordstrom earnings
Friday – J C Penney, Foot locker earnings