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The vacation-shortened week forward shall be mild on earnings reviews and company occasions because the calendar winds down in 2022. Historical past is on the facet of a Santa Clause rally with the inventory market traditionally seeing extra positive factors than losses over the last buying and selling week. Market indexes have been susceptible to get pushed increased through the low-volume week as tax-loss methods and year-end investing suggestions the dimensions to the bull facet. Nonetheless, the Santa Claus rally precedent might be examined this 12 months with recession and rates of interest fears excessive. Additionally within the combine, traders are additionally unsure easy methods to interpret financial releases within the surroundings. “The bulls cannot win,” famous economist Edward Yardeni. “If the financial indicators are too robust, the Fed could have no alternative however to tighten till a recession happens. If they’re weak, then a recession may be coming sooner,” he famous. As for particular person shares subsequent week, regulate NIO (NYSE:NIO) with the Chinese language electrical car maker holding an annual investor occasion, whereas Tesla (TSLA) seems to be to interrupt its six-session dropping streak.
Earnings highlight: Tuesday, December 27 – GreenTree Hospitality Group (GHG).
Earnings highlight: Wednesday, December 28 – Cal-Maine Meals (NASDAQ:CALM) and Nisun Worldwide Enterprise (NASDAQ:NISN).
Earnings highlight: Friday, December 30 – Uxin Restricted (NASDAQ:UXIN).
Highlight on NIO: Chinese language electrical car startup NIO will maintain its annual NIO Day occasion on December 24 on the Binhu Worldwide Conference and Exhibition Heart in Hefei. NIO is predicted to unveil two new fashions and a brand new energy station product on the occasion. There’s hypothesis {that a} NIO EC7 might be introduced because the model’s second SUV-coupe mannequin. An announcement on the 2023 NIO ES8 or ET5 Station Wagon are different potentialities. The reveal of the brand new Energy Swap 3.0 station might be important with the brand new system anticipated to be a lot improved over the primary iterations. Some media reviews indicated the brand new energy station may retailer 22 battery packs that might make 24 swaps a day. NIO operates greater than over 1,200 Energy Swap stations in China, with most of them Energy Swap 2.0 models, able to storing as much as 13 battery packs and will make 312 swaps each day. Trying forward, NIO is predicted to launch 5 fashions within the first half of 2023.
Healthcare watch: Medical-stage biotech TG Therapeutics (NASDAQ:TGTX) is within the highlight within the week forward with the motion date for the corporate’s Biologics License Software for ublituximab for relapsing types of a number of sclerosis arriving. Share soared greater than 50% in November after Chief Govt Michael Weiss mentioned that the corporate has began labeling discussions with the FDA forward of a possible U.S. approval for the remedy. Roche (OTCQX:RHHBY) (OTCQX:RHHBF) will even be on watch with the FDA anticipated to decide on mosunetuzumab for relapsed or refractory follicular lymphoma. The biologic obtained conditional advertising in Europe in August below the identify Lunsumio. If accredited within the U.S., mosunetuzumab would turn out to be the primary bispecific antibody accredited for non-Hodgkin’s lymphoma. Waiting for the brand new 12 months, Financial institution of America tipped that earnings pre-announcements may jolt shares of Alnylam Prescribed drugs (ALNY), Amicus Therapeutics (FOLD), Neurocrine Biosciences (NBIX), and Ultragenyx (NASDAQ:RARE). In the meantime, healthcare corporations with new product launches that might present updates relating to launch metrics and FY22 income in early January embrace Apellis Prescribed drugs (APLS), argenx (ARGX), and Ascendis Pharma (ASND).
Eyes on auto: Buyers have an advanced setup for the auto sector in 2023 to contemplate, with recession worries and a sharper deal with profitability bumping up in opposition to anticipated easing of manufacturing headwinds. Financial institution of America has a conservative forecast for quantity in 2023, with automakers not showing to be in a rush to ramp up manufacturing and the macro overlay a better danger. J.D. Energy additionally expects 2023 to hold a excessive degree of uncertainty as a number of markets might be coping with a recession and potential affordability issues. Of be aware, increased pricing coupled with rising rates of interest on loans proceed to push up month-to-month mortgage funds. The analysis agency nonetheless forecast a 6% enhance in world auto gross sales to 85.7M models with an improved state of affairs in China elevating the outlook barely from only a month in the past. In the meantime, the auto outlook from S&P International Mobility carries a countercyclical narrative. Anticipated manufacturing ranges are anticipated to proceed to extend, at the same time as financial situations are anticipated to deteriorate by way of the early levels of subsequent 12 months. “The advancing manufacturing ranges, together with reviews of sustained retail order books, recovering inventory of autos, and a fleet sector that continues to be starved for product, ought to present some impetus to auto demand ranges at the same time as an financial recession looms,” up to date S&P. For the U.S., the agency tasks calendar-year 2023 gross sales development of seven% to quantity of 14.8M models within the U.S. Of be aware, the agency mentioned subsequent 12 months will see the sustained advance of battery electrical autos. Additional electrification progress in 2023 might be fueled by an extended listing of product rollouts. A few of EV fashions that might create some buzz embrace Cadillac (GM) Lyriq, Lexus (TM) RZ, Fisker (FSR) Ocean, Genesis GV60, Chevrolet Equinox EV, GMC Hummer SUV, Chevrolet Blazer EV, Hyundai (OTCPK:HYMLF) Ioniq 6, Jeep (STLA) EV, Mercedes-Benz (OTCPK:MBGAF) EQE, Nissan (OTCPK:NSANY) Ariya, Polestar (NASDAQ:PSNY) 3 and 4, in addition to the long-awaited Toyota (TM) bz4x SUV. In fact, these new fashions will enter the market with Tesla (TSLA) ramping up manufacturing ranges within the U.S. and automakers on the lookout for their fashions to qualify for the complete quantity of the EV tax credit score.
Las Vegas: The Nevada Gaming Management Board is because of difficulty its month-to-month report on gaming win for the state in what shall be a intently watched report for the sector. The October report confirmed gross gaming income on the Las Vegas Strip rose 0.5% year-over-year to $706M regardless of the worsening financial backdrop. Weighing in on the report, CBRE Fairness analyst John DeCree famous that after excluding poker from the month-to-month tally, gaming win was up 3.3% because of the completely different timing of the World Sequence of Poker a 12 months in the past. “Notably, Blackjack and slot win each reached all-time highs on the Strip in October, and whole mass market gaming win (ex baccarat) was simply 3% under the prior peak in November 2021 – portray a robust image of Las Vegas and the core home client,” added DeCree. The important thing with the November report shall be to see if that momentum sustained for an additional month and the surge in group and conference enterprise continued. So far as Las Vegas goes, the businesses with the very best mixture of income publicity are MGM Resorts (MGM), Caesars Leisure (CZR), VICI Properties (VICI), Golden Leisure (GDEN), and Wynn Resorts (WYNN) at 23%.
Company occasions: A number of SPAC offers will go to a shareholder vote on December 27. Look ahead to developments with Tailwind Acquisition’s (NYSE:TWND) deal to take laser maker Nuburu and Mannequin Efficiency Acquisition’s (NASDAQ:MPAC) deal to take leisure agency MultiMetaVerse public. The four-day San Diego Auto Present begins with a media occasion on December 30. A few of the automakers exhibiting off new fashions embrace Hyundai (OTCPK:HYMLF), Nissan (OTCPK:NSANY), Stellantis’ (STLA) with the Ram and Jeep manufacturers, Ford (F), and Volkswagen (OTCPK:VLKAF). Analysts shall be watching the auto present intently for clues on pricing and incentives on 2023 modelsRead Seeking Alpha’s Catalyst Watch. for a extra full listing of the week’s massive occasions.
Field workplace: The weekend field workplace numbers for Avatar: The Manner of Water shall be intently watched after the primary weekend fell wanting Disney’s (NYSE:DIS) forecast. The film’s second week is predicted to highlight if the James Cameron movie could have long-term field workplace attraction. Of be aware, the subsequent main blockbuster – Disney and Marvel’s Ant-Man and the Wasp: Quantumania – is not going to debut till February 17 within the U.S. It’s going to even be a giant weekend general for theater shares corresponding to AMC Leisure (AMC), IMAX (IMAX) and Cinemark (CNK) with the times between Christmas and New 12 months’s Day sometimes accounting for as a lot as 5% of the 12 months’s whole field workplace haul.
Barron’s mentions: The quilt story this week delves into the rising robotics business and the potential for robots to assist with labor shortages by performing fundamental duties like delivering pizza, sorting pharmaceuticals, fixing a tire, milking cows, recycling plant capabilities, lab work, and offering room service in a resort. International robotics gross sales rose to a file $15.5B in 2021 and are on observe to develop one other 10% this 12 months, in accordance with the Worldwide Federation of Robotics. Amazon (AMZN) was famous to be one of many leaders and has rolled out its first totally automated robotic, referred to as Proteus, for warehouses. For traders, the area generally is a problem with small software program makers or early-stage development shares with out a lot income or revenue within the combine. The publication famous that bigger gamers making robotic arms, chips, and elements are typically industrial conglomerates or tech corporations with synthetic intelligence as one among their companies. For these occupied with a long-term robotics play, the ROBO International Robotics & Automation Index (ROBO) is a catch-all funding for the sector that features Cognex (CGNX), Intuitive Surgical (ISRG), Tokyo-traded Fanuc, and Rockwell Automation (ROK) as prime holdings.
Sources: EDGAR, Bloomberg, CNBC, Reuters
Editor’s Word: This text discusses a number of securities that don’t commerce on a significant U.S. alternate. Please concentrate on the dangers related to these shares.