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After a sharp decline in the stock market, investors will be tested again next week with Federal Reserve speakers back on the circuit and the latest consumer price report set to drop to give watchers of inflation more to chew. The consumer price report is expected to show a 0.2% rise in the month-on-month CPI and a decline in the year-on-year inflation rate to 8.2% against 8.5%. Food and auto prices are extremely hot, while some deceleration is seen with accommodation prices, air fares and transportation service prices. The inflation report arrives with the 10-year Treasury yield just crossing the 3% threshold for the first time since the end of 2018 and ending the week at 3.13%. The Earnings Calendar shows the trips made by 3D Systems (NYSE:DDD), Coinbase Global (NASDAQ: CURRENCY), and Disney (DIS) in the income confessional. In the electric vehicle sector, a major automotive summit will include a keynote from Tesla (TSLA) CEO Elon Musk and Rivian Automotive (NASDAQ:RIVN) will exceed the IPO lock-up period for early investors.
Earnings Spotlight: Monday, May 9 – 3D Systems, Duke Energy (DUK), Lordstown Motors (RIDE), AMC Entertainment (AMC, Tyson Foods (TSN), Blue Apron (APRN), Coty (NYSE: COTY).
Earnings Spotlight: Tuesday, May 10 – Occidental Petroleum (OXY), Coinbase Global (COIN), Hyatt Hotels (H), Electronic Arts (EA), Peloton Interactive (NASDAQ: PTON),
Earnings Spotlight: Wednesday, May 11 – Disney, Rivian Automotive, Coupang (New York Stock Exchange: CPNG), Wendy’s (MAGNIFYING GLASS), Yeti Holdings (YETI).
Earnings Spotlight: Thursday, May 12 – Brookfield Asset Management (BAM), US Foods (USFD), Aurora Cannabis (NASDAQ:ACB) and Six Flags Entertainment (SIX).
Earnings Spotlight: Friday, May 13 – Honda engine (HMC)
IPO monitoring: The biggest wild card in the IPO market in the week ahead is the expiry of the Rivian Automotive (RIVN) lockup. Nearly 800 million shares will be released for sale by investors if they wish. This count includes 100 million shares of Rivian held by Ford (F) and 160 million shares by Amazon (AMZN). The two companies together own more than 28% of Rivian, and the electric vehicle maker’s fair market value is reported quarterly as part of their total earnings. In some cases, stocks emerging from a large IPO stall rally over the following week with a major overhang removed. Other IPO blocking note expirations cover certain blocks of Hertz Global shares (NASDAQ: HTZ), Expensify (EXFY), CI&T Inc (CINT), Third Coast (TCBX), Society Pass (SOPA), Weave (WEAV), Backblaze (NASDAQ:BLZE), Lulu’s fashion (NASDAQ: LVLU), Vaxxinity (NASDAQ: VAXX), Winc (WBEV), Kidpik (PIK) and Tivic Health Systems (TIVC). Meanwhile, analyst silence periods expire on Excelerate Energy (EE), Applied Blockchain (APLD) and Genius Group (GNS).
Corporate events: Western Digital Corp. (WDC) will hold its 2022 Investor Day on May 9 during which executives plan to discuss the company‘s long-term strategy. On May 10, Dish Network Corporation (NASDAQ: FLAT) will host an analyst day and Corvus Pharmaceuticals (CRVS) will host an R&D symposium. WestRock Company (WRK) and Fastly (FSLY) are hosting Investor Days on May 12. Learn more about next week’s events that could impact stock prices in Seeking Alpha’s Catalyst Watch.
Conference schedule: The conference program is presented by the Bank of America Global Healthcare Conference 2022, with participation from Recursion Pharmaceuticals (RXRX), Esperion Therapeutics (ESPR), Adaptive Biotechnologies Corporation (NASDAQ: ADPT), Inari Medical (NARI) and Basic Energy Services (OTC:BASX) to name a few. Other conferences of note include the Goldman Sachs Industrials and Materials Conference, Oppenheimer’s 7th Annual Emerging Growth Conference, Citi’s 2022 Global Energy, Utilities and Climate Tech Conference, Sidoti Virtual Micro Cap Conference and the Seventh Annual Goldman Sachs Leveraged Finance and Lending Conference. .
Spotlight on the electric vehicle industry: The rocky journey for EV inventory in 2022 has shown no signs of easing, even with some bright first-quarter earnings reports over the past two weeks. The spotlight could return to the long-term potential of electrification with the FT Future of the Car Summit next week with Mercedes-Benz (OTCPK:DDAIF) Ola Källenius, Waymo (GOOG) Co-CEO Tekedra Mawakana, Tesla (TSLA) CEO Elon Musk, as well as appearances from the heads of Lucid Group (NASDAQ: LCID), Aurora Innovation (AUR) and Polestar (GGPI). TuSimple (NASDAQ:TSP) also has an Investor Day event scheduled for next week in Tucson, Arizona to talk about its self-driving vehicle technology, as well as provide an update on near-term milestones and the path to commercialization. EV events will take place with stock prices across the sector upside down with names like Arrival (ARVL) -73% YTD, Cenntro Electric (CENN) -68%, Sono Group (SEV) -59%, Nio (NIO) -51%, Lordstown Motors (RIDE) -40%, Fisker (FSR) -37% and Nikola (NKLA) -34% deep in the red. Electric juggernaut Tesla is trading around 30% below its all-time high.
Interactive Peloton Preview: Peloton Interactive (PTON) will report results on May 10, with analysts expecting revenue of $970 million and EPS of -$0.94 to be released. UBS says subscriber growth guide for FQ4 will be a major focus when PTON reports with consensus brand currently at +30% Y/Y. Management update on new pricing strategy, acquisition costs customers and churn rates will also be key. Analyst Arpine Kocharyan said it is interesting to consider the acquisition of PTON by a big name like Apple (AAPL), Amazon (AMZN) or Nike (NKE), but called it an unlikely scenario, even with the intriguing consumer data angle.
M&A monitoring: The walking date on Sanderson Farms (NASDAQ: SAFM) the sale to Continental Grain and Cargill is May 9. The go-shop period expires May 12 for the Elliott and Brookfield deal to go public with Nielsen Holdings (NLSN).
Annual meetings to note: Under protection (New York Stock Exchange: UAA) is holding its annual meeting on May 11 just days after shares tumbled when the sportswear company was disappointed with its earnings report. Kohls (NYSE: KSS) also hosts an annual meeting with activist investors who are clamoring for a seat on the board. On May 12, Southwest Gas Holdings (SWX) holds its annual report and Carl Icahn is still pushing for up to four seats on the board.
Stock breakdown: The 2-for-1 stock split on Canadian Imperial Bank of Commerce (CM) takes effect May 13.
Mentions of Barron: The publication convened a roundtable on transportation to explore the outlook for automakers and the technologies shaping the future of the industry. Tesla (TSLA), Uber Technologies (UBER) and Grab Holdings (GRAB) are New Street Research’s Pierre Ferragu’s top electrification picks, while Gamco Investors’ A. Carolina Jolly says underrated plays on logistics of housing and maintenance vehicles are Genuine Spare Parts (GPC), O’Reilly Automotive (ORLY), Monro (NASDAQ: MNRO), Universal Technical Institute (UTI), Copart (CPRT) and Snap-on (SNAP). These stocks are also seen as beneficiaries of the push towards self-driving technology. General Motors (GM) has not been totally ignored in all the attention given to the automotive industry. GM is labeled a cheap stock that is not recognized for the strength of its core automotive business and is seen as well positioned in electric vehicles and autonomous vehicle technology.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital
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