Here's your weekly Investing Action Plan: what you need to know as an investor for the coming week.
[ibd-display-video id=3011834 width=50 float=left autostart=true] Bitcoin's wild ride could get even wilder as futures trading begins in the coming week. Another interest rate increase from the Federal Reserve is nearly a lock, but that doesn't mean the next meeting will be a yawner. And
Walt Disney ( DIS ) is about to unleash another blockbuster movie - and possibly another blockbuster acquisition that could significantly redraw the battle lines in the media-tech wars, as Disney prepares a rival to
Netflix ( NFLX ).
Stocks To Watch
Your stocks to watch this week are five industrial names near buy points:
Chevron ( CVX ),
3M ( MMM ),
Vale ( VALE ),
Terex (TEX) and
Chevron initially staged a breakout over a 120.99 flat base buy point on Dec. 4, but finished the session just below that level. The pullback in shares since has been relatively mild, with the oil major is just 0.9% below the entry.
3M is hovering just 0.3% under a buy point of 239. The industrial conglomerate's shares initially cleared that level in strong volume on Nov. 30, and are now flirting with a return into the buy zone.
Vale has two potential buy points to watch. The metal and mining multinational is trading 9% below an 11.82 buy point in a base on base pattern . Vale also could be closing in on an earlier handle entry at 11.52, if it can cross that level in strong volume.
Terex is trading 5% below a flat base entry of 48.96. The industrial equipment manufacturer has been able to find support around the 50-day line as it shaped the base.
Fellow industrial equipment manufacturer Manitowoc has a base pattern that is not as common; it's an ascending base . This pattern forms when a stock has three separate pullbacks, each with higher highs and higher lows, over the course of nine to 16 weeks. The pullbacks are typically 10%-20% in depth. Manitowoc has been working on the pattern for a little over three months and is now trading 4% below a 42.22 entry point.
Fed Rate Hike
There's little doubt that the Federal Reserve will hike rates on Wednesday. The only question is what the Fed will signal about policy next year, now that the GOP tax bill is on the verge of passage. Policymakers' quarterly projections in September signaled three rate hikes in 2018, when tax-cut prospects were highly uncertain. Could Fed committee members now indicate a likelihood of four rate hikes, even as financial markets expect two? Meanwhile, the latest jobs report provided mixed signals. Strong payroll gains were offset by tepid wage gains, but the former probably outweighs the latter in the eyes of the Fed.
Key economic indicators are also due in the coming week. The consumer price index comes out early Wednesday. After an uptick in core inflation to 1.8% in October, a further rise in November could create the impression that the tight job market is finally beginning to feed through to an increase in price pressures. On Thursday, Commerce Department retail sales data for November will provide a checkup on the strength of consumer demand as holiday shopping kicked off. On Friday, the Fed will release industrial production data.
Bitcoin Futures To Trade
Cboe Global Markets (CBOE) will launch futures trades for the cryptocurrency on Sunday, giving it a week-long head start on rival
CME Group (CME), which open up for Bitcoin futures trades on Dec. 18. Brokerages like
Interactive Brokers (IBKR) and Wedbush have said they will execute futures trades, while some bigger names have adopted a wait-and-see approach.
Goldman Sachs (GS) will reportedly clear futures contracts for certain clients, but skepticism on Wall Street still runs deep as Bitcoin smashes through new milestones at a faster pace. With Bitcoin opening up to new, presumably more conventional investors in the coming weeks, will the whiplash-inducing volatility seen recently ease or get worse?
IBD'S TAKE: Are Bitcoin, Ethereum and other digital currencies real investments or a speculator's game? Individual investors should be extremely cautious about diving into this new area. Read this feature about Bitcoin risks and possible gains first.
Disney: The Empire Strikes Back
An announcement of a $60 billion deal for
21st Century Fox (FOXA) to sell Disney its studio (and certain international and cable) assets could come as early as the coming week, according to reports. Such a combination would represent a formidable counter-punch to media disrupters like Netflix and
Amazon (AMZN), as Disney readies its own streaming service. Also if the deal happens, Disney CEO Bob Iger is likely to push back his retirement past 2019 so that he may oversee the merger of assets, sources told the Wall Street Journal.
Comcast (CMCSA) is also interested in Fox's assets but Disney is reportedly Fox's preferred buyer.
Meanwhile, "The Last Jedi" is slated to open on Dec. 15; the "Star Wars" title is expected to bring Disney big bucks at the box office, not to mention another merchandising bonanza in stores and online. As the second film in the new trilogy, comparisons have been drawn to "The Empire Strikes Back."
Will Adobe Have 'All-Star' Earnings?
The digital media and marketing software firm reports fiscal Q4 results Thursday, and analysts see EPS climbing 28% to $1.15, with revenue growing 21% to $1.95 billion. Last month, KeyBanc Capital Markets r aised its price target on
Adobe Systems (ADBE) to 216 from 178, calling it an "all-star" company in cloud computing and artificial intelligence. It also noted planned price increases, and an expanding suite of Creative Cloud products. In October, management gave fiscal 2018 guidance that sees EPS surging 30% to $5.50 and sales rising 20% to $8.7 billion.
Jabil Earnings Could Give Glimpse Into Apple
Jabil (JBL) is scheduled to report its fiscal Q1 results after the market close on Thursday. Jabil provides electronics design and manufacturing services to tech companies. It gets an estimated 24% of its sales from
Apple (AAPL), including iPhone casings. Analysts expect Jabil to earn 78 cents a share, up 13% year over year, on sales of $5.5 billion, up 8%.
MongoDB's First Time At The Rodeo
The database software company reports its first quarterly results as a publicly traded company after the market close Tuesday. The consensus estimate is for a Q3 loss of 48 cents per share on revenue of $37.1 million.
MongoDB (MDB) provides an open-source database platform for businesses. The company raised $192 million with its initial public offering on Oct. 18. Shares popped early but have since fallen and are near their IPO price of 24.
Will Chicken Run Lift Sanderson Farms?
One of the nation's largest poultry producers reports fiscal Q4 earnings on Thursday, and Wall Street expects Q4 EPS to rise 8% to $3.64 on a 16% jump in revenue to $919 million. The results will follow a massive run-up in the company's stock this year, propelled by equally-massive consumer appetites for chicken, which is seen by younger people as a healthier dining option.
Sanderson Farms (SAFM) is building a plant in Texas to keep up with demand, but has faced pressure to cut its use of medically important antibiotics in chickens.
High Hopes For Costco
The membership warehouse reports fiscal Q1 results after the close Thursday, with EPS expected to rise 15% to $1.35 on 11% revenue growth to $31.29 billion. Even as
Costco (COST) competes with
Walmart (WMT) and Whole Foods parent Amazon, Costco still logged 10.8% in same-store sales growth in November, easily topping Retail Metrics' views for a 7% comp. Shares remain near their record high of 191.22 reached after the strong comp sales report.
Source : http://www.nasdaq.com/article/bitcoin-debut-fed-meeting-disneys-big-week-investing-action-plan-cm889131