Welcome to the BUX Breakdown, where we give you an edge on the stock market for the week ahead. Here’s what you need to know from June 28th to July 2nd in three minutes flat.
The coming week is the calm before the storm, as the big earnings season kicks off later in July. In this week’s edition, we’ll take a look at quarterly results from Bed, Bath & Beyond, as well as the upcoming Purchasing Managers Index (PMI) data from Europe and the US.
Bed, Bath & Beyond heading for a strong quarter?
On June 30, Bed, Bath & Beyond (BBBY) will publish its quarterly results. The retailer’s revenue is expected to come in at $1.86 billion. That would be an increase of 42.4% compared to the previous quarter. What’s driving the rapid growth? Well, the company announced the launch of three new brands, sending BBBY shares skyrocketing.
The retailer has now launched six new brands in 2021, and it aims to reach at least eight before the end of the year. The future looks bright if the company can continue at this pace. The ambitious BBBY could be a stock to watch.
Get ahead of the markets with PMI data
On Thursday, we’ll get Industrial Purchasing Managers Index (PMI) data from France, Germany, Great Britain, the US and Europe as a whole. The index is a gauge of how much industrial activity is going on, by tracking the volume of raw materials purchased by manufacturers. This is useful data for investors because it gives us a glimpse into whether companies are ramping up their production behind the scenes and how good they feel about their opportunities in the market.
PMIs are often one of the first economic numbers released when a new month approaches, providing a useful indicator of whether an industry has grown or shrunk from the previous month.
July earnings season: what are investors looking for?
Although we’ll bring you a few company figures in the next couple of weeks, the real earnings season begins in mid-July. There can be a lot of volatility on the stock market during this time. If you’re new to earnings season, here’s what you need to know. After every quarter, public companies announce their most important results, such as revenue, profits and cash flow. Often, analysts make forecasts in advance which can also influence the stock price.
Companies also take this chance to share their strategy and forecasts for the near future. Some companies will report a loss, but they’ll try to show they’re on track to profitability or growing rapidly. As an investor, you can use that information to figure out if a company is doing well, and what the future holds.
Want to know more about the earnings season? Follow along with all the upcoming earnings reports in our July articles.
Economic and earnings calendar
Tuesday – Johnson Redbook Retail Sales (US retail) and Consumer Confidence US, Europe and France.
Wednesday – Quarterly figures for Bed, Bath & Beyond, Retail sales Netherlands (annual), Business investment Great Britain (first quarter).
Wednesday – Retail Sales (annual) Germany.
We’ll be back again next week for another edition of the BUX Breakdown. In the meantime, have a great week on the markets!
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All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.