Companies Reporting Earnings 
for the
Week Beginning January 07, 2019

by Ian Harvey

January 07, 2019


A Quick Review of Last Week’s Market…..

The Federal Reserve's pledge to be more "patient" with its interest rate hikes erased one of the biggest obstacles to a stock market rally that went on for much of President Donald Trump's time in office.

During his appearance Friday, Powell indicated that inflation was not a concern for the Fed and the economy is still in good shape despite concerns. He also said the Fed was paying attention to the market, which is reflecting a weaker outlook than the data suggests.

Also, the Labor Department said the U.S. economy added 312,000 jobs in December. That blew past an expectation of 176,000 jobs.

The strong gains helped all three indexes bring their weekly win streaks to two, and close at their highest points since December 18.

For the week, the Dow Jones Industrial Average (DJI) finished up 1.6% at 23,433.16.

The S&P 500 Index (SPX) was up 1.8% at 2,531.94 for the week.

And the Nasdaq Composite (IXIC) also up 2.3% for the week at 6,738.86.

End Results for 2018

U.S. Indices
For the year, the Dow fell 5.6%, the S&P 500 dropped 6.2% and the Nasdaq Composite shed 3.9%, marking the worst annual performance for all three indices since 2008.

S&P 500 Sectors
Consumer Staples -11.2%. Utilities +0.5%. Financials -14.7%. Communication Services -16.4%. Healthcare +4.7%. Industrials -15%. Information Technology -1.6%. Materials -16.4%. Energy -20.5%. Consumer Discretionary -0.5%. Real Estate -5.6%.

Top Stock Gainers

  • Dow: MRK +35.8%, PFE +2.5%, MSFT +18.7%, NKE +18.5%, V +15.7%.
  • S&P 500: AMD +79.6%, ABMD +73.4%, FTNT +61.2%, AAP +57.9%, TRIP +56.5%.
  • Nasdaq 100: AMD +79.6%, WDAY +56.9%, LULU +54.7%, ORLY +43.1%, NFLX +39.4%.

Top Stock Losers

  • Dow: GS -34.4%, IBM -25.9%, DWDP -24.9%, CAT -19.4%, MMM -19%.
  • S&P 500: COTY -67%, MHK -57.6%, LB -57.4%, GE -56.6%, PRGO -55.5%.
  • Nasdaq 100: WDC -53.5%, JD -49.5%, KHC -44.7%, WYNN -41.3%, LBTYA -40.5%.

Moving Ahead…..

The fourth-quarter sell-off of 2018 created some ample opportunity in the stock market, which has now fallen behind its historical average performance in the first two years of President Trump's administration.

On-top-of the Fed's less aggressive rate hike agenda; Monday could bring the market even more forward momentum as U.S.-China trade talks resume. China's commerce ministry said the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on January 7-8.

Therefore, expect to see solid gains for stocks by the end of 2019. Based on valuation levels, even if there is no earnings growth this year, this is a cheap market.


What to Watch


Earnings - Commercial Metals, Steve Madden

Trade discussions between the U.S. and China restart on Monday

Banking giant J.P. Morgan kicks off its 37th annual Healthcare Conference in San Francisco.

  • 10:00 a.m. ISM nonmanufacturing
  • 10:00 a.m. Factory orders
  • 12:40 p.m. Atlanta Fed President Raphael Bostic


Earnings – Helen of Troy, Lindsay, Smart Global, AZZ

  • 6:00 a.m. NFIB survey
  • 8:30 a.m. International trade
  • 10:00 a.m. JOLTs
  • 3:00 p.m. Consumer credit


Earnings – Bed Bath and Beyond, KB Home, PriceSmart, Progress Software, Constellation Brands, Lennar, Schnitzer Steel, Acuity Brands, WD-40

  • 8:20 a.m. Atlanta Fed President Raphael Bostic
  • 9:00 a.m. Chicago Fed President Charles Evans
  • 11:30 a.m. Boston Fed President Eric Rosengren
  • 1:00 p.m. 10-year auction
  • 2:00 p.m. FOMC minutes


Earnings – Synnex, Delta, FuelCell Energy

  • 8:30 a.m. Initial claims
  • 8:35 a.m. Richmond Fed President Thomas Barkin
  • 10:00 a.m. Wholesale trade
  • 12:00 p.m. Fed Chairman Jerome Powell speaks at the Economics Club of Washington D.C.
  • 12:40 p.m. St. Louis Fed President James Bullard
  • 1:00 p.m. 30-year auction
  • 1:00 p.m. Chicago Fed's Evans
  • 5:30 p.m. Fed Vice Chair Richard Clarida


Earnings - Infosys

  • 8:30 a.m. CPI
  • 2:00 p.m. Federal budget




Options Trades to Consider Based on Expected Earnings Reports:

Tuesday, January 08, 2019

Smart Global Holdings Inc (NASDAQ: SGH), a specialty designer of memory solutions, will report earnings after the market closes. The consensus earnings estimate is $1.77 per share on revenue of $382.24 million; but the Whisper number is a bit higher at $1.79 per share. The company's guidance was for earnings of $1.74 to $1.79 per share on revenue of $375.00 million to $390.00 million. Consensus estimates are for year-over-year earnings growth of 70.19% with revenue increasing by 44.02%.

Smart Global has an impressive book of over 250 clients from around the world-most of them major OEMs. Smart Global's most recent quarterly report was another beat-and-raise performance from the firm, and although much of its recent success is owed to wins on the server side, it certainly has exposure to IoT applications.

Smart Global serves IoT-adjacent industries like automotive and cloud computing. Smart Global uses memory tech which is less susceptible to price fluctuations. As well, the company is looking at a projected long-term earnings growth rate of 15%, suggesting that its expansion should continue strongly in the future.

Smart Global bought a company called Penguin Computing, which specialized in compute memory storage solutions for artificial intelligence and machine-learning solutions. Smart Global then used Penguin to start a new business segment called Specialty Compute & Storage (SCS), and according to Stifel analyst Kevin Cassidy, SCS is poised for lots of growth in fiscal 2019.

In an investor note, Cassidy believes the company's SCS business could generate $198 million in 2019, which could eventually reach $400 million to $500 million annually......

……..Read the rest of the report to see what options trades we are considering......

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An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, check out the other  memberships available at Stock Options Made Easy.

When To Exit A Trade Based On Earnings?.....

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” 

As most traders realize, there is a 50/50 chance that the company stock price could go either way after reporting earnings – even if the report is good, the stock price could reverse – and if you hold a call option, means depletion of an already good profit if it exists. A similar situation can be found if you hold a put option, and a report is not that sound (and you expect a profit from this) but the stock price can, at times move upwards due to traders bias or other external conditions......READ MORE.....

The Decision Is Yours!

Before You Trade Consider This Strategy……

"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.

……continue reading this article……

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!

Options traders are not successful because they win.

Options traders win because they are successful.

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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