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Prime Day, Lordstown Week, New Microsoft Windows Due: Investing Action Plan

Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming day. A relatively slow week will be punctuated by Amazon’s (AMZN) Prime Day e-commerce bonanza and Microsoft’s (MSFT) unveiling of its next Windows operating system. Nike (NKE) reports earnings, and EV startup Lordstown (RIDE) will hold a big event after a turbulent week.




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Stocks To Watch

Entergy (ENTG) is in a cup base with a 126.51 buy point but could form a handle later. Pool (POOL) is in a flat base with a 449.54 buy point. Microsoft is closing in on a 263.29 buy point from a shallow cup base. Alphabet (GOOGL) is back below a 2,431.48 flat-base buy point. PayPal (PYPL) is back below a 277.96 early entry as well as an official buy point of 309.24.

Amazon Prime Day

The biggest sales event each year by the e-commerce giant, takes place Monday and Tuesday. It started in July of 2015 as a 24-hour event to celebrate the company’s 20th anniversary. It has since evolved into a two-day affair in which Amazon offers major discounts across all of its product categories. The event was postponed for three months last year due to Covid-19 complications. Amazon does not release Prime Day sales figures. Estimates on sales for last year ranged from $7.5 billion to $9.9 billion, the midpoint representing what is believed to be a 40% increase from the prior year. The event has become so popular that Walmart (WMT), Target (TGT), and other big retailers offer their own online deals.

Microsoft To Tout New Windows OS

The software giant plans to announce what’s next for its Windows operating system at an event on Thursday. Analysts expect Microsoft to unveil Windows 11, the successor to Windows 10, which came out in July 2015. Windows accounts for 26% of Microsoft’s revenue and 28% of its earnings per share, says Rosenblatt Securities. Media reports indicate that Windows 11 will include a refreshed user interface and design. It also could sport deeper integration with Microsoft’s cloud services. Microsoft stock is nearing a buy point ahead of the event.

Nike To Report Amid Shipping Woes

The athletic gear giant reports fiscal Q4 earnings late Thursday. Analysts see EPS of 51 cents, compared to a loss of 51 cents a share in the year-ago quarter. Sales are expected to surge 73% to $11.1 billion. Last quarter, Nike’s largest geographic segment, North America, saw revenue fall 10% in Q3, due to supply-chain challenges, including global container shortages and U.S. port congestion, impacting the flow of inventory and timing of wholesale shipments.

Russell 2000 Rebalance

FTSE Russell concludes the annual rebalancing of its family of U.S. stock indexes, with changes taking effect June 25 after the market close. The reconstitution accounts for market changes in the previous year and triggers significant buying and selling, with the indexes serving as benchmarks for more than $10.6 trillion in investor assets. Meme stock GameStop (GME) could move up to the big-cap Russell 1000, but AMC Entertainment (AMC) is likely to remain in small-cap Russell 2000 index. Apple (AAPL) will unseat Microsoft (MSFT) as the No. 1 stock in the Russell 1000 and Tesla (TSLA) will leap into its top 10 largest stocks, FTSE Russell said.

Lordstown Week

The embattled EV startup will be put to the test when it hosts journalists, investors and analysts at its Ohio factory June 21-25. It’s promising factory tours and test drives of the Endurance all-electric pickup truck. Initial production is set to begin in late September. But doubts have grown about Lordtown’s ability to churn them out after warning about its ability to continue as a going concern while management is undergoing an abrupt turnover.

Plug Power Earnings Expected

The twice-delayed first-quarter earnings report will come out early Tuesday. Plug Power (PLUG) has restated years of financials recently. Analysts expect per-share losses to narrow to 8 cents from 12 cents last year, with sales up 67% to $68 million. The hydrogen fuel cell company has already provided some Q2 guidance and sees sales of more than $102 million, up 50%, and gross billings to exceed $105 million, about 50% higher.

Fed Chief To Testify

Federal Reserve Chairman Jerome Powell will appear Tuesday before the House of Representatives’ Select Subcommittee on Coronavirus Crisis to discuss the central bank’s response to the pandemic. The testimony comes as the U.S. economy has rebounded faster than expected, prompting policymakers to reassess views on inflation, while the job market’s recovery has lagged expectations.

Other Earnings

FedEx (FDX) will report fiscal Q4 results after the market closes Thursday. Wall Street expects the shipping company to report a 96.4% jump in EPS to $4.97 and a 23.3% increase in revenue to $21.46 billion.

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