3 Stocks To Watch In The Coming Week: Apple, Delta Air Lines, ExxonMobil
Investing.com | Oct 06, 2019 03:49AM ET
With the much anticipated resumption of U.S.-China trade talks next week, there isn’t anything bigger than this lingering issue between the world’s largest economies that could set investors on edge. Officials from both sides are set to meet and re-start principal-level negotiations on Thursday in Washington. White House economic advisor Larry Kudlow said Friday that “positive surprises” could emerge from the talks.
Aside from trade, markets are also closely monitoring U.S. economic data which could provide more understanding of the U.S.'s future interest rate policy.
Trade and central bank monetary policy remain the two major themes driving the markets. Here are three high-profile stocks we believe could see some price action in the week to come.
h2 1. Apple Inc./h2There's a new momentum to Apple's (NASDAQ:AAPL) shares these days. After a sustained rally through the summer, the iPhone manufacturer is now within striking distance of record levels seen almost a year ago when optimism whas high that the company’s newest smartphone models were getting a good reception. The stock peaked at $228.22.
Shares rose 2.8% on Friday to close at $227.01, easily outperforming the broader S&P 500 information technology sector. The gain was just the latest move higher for Apple, which is up more than 18% from an August low and has surged about 60% from its January low.
The latest wave of optimism came after positive comments from Chief Executive Officer Tim Cook, who spoke with the German newspaper Bild in an article dated Sept. 30. Cook, according to a translated version of the article, said that sales of the iPhone 11 had seen a “very strong start,” and that he “couldn’t be happier” with the launch, according to Bloomberg.
If Apple is able to accelerate its iPhone sales, which still make up about 60% of its total revenue, it will be a significant win for Mr. Cook, who is also in the middle of launching new products, including Apple's streaming video service, in order to diversify the company’s revenue base. These efforts combined could send Apple shares to new highs. Activity in the coming week could further cement that rally.
h2 2. Delta Air Lines/h2Delta Air Lines (NYSE:DAL) will report Q3 earnings on Thursday, Oct. 10 before the market open. On average, analysts are expecting $2.26 a share profit on sales of $12.6 billion.
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Delta led all U.S. carriers in net income last year, giving its CEO, Ed Bastian, a lot of ammunition with which to expand. Last month, Delta agreed to pay $1.9 billion for a 20% stake in Latam Airlines Group, Latin America’s largest airline.
“This year at Delta we expect to make over $5 billion for the fifth year in a row in terms of profits,” Bastian told Bloomberg in a recent interview. “But we’ll also have free cash flow to liberate this year of over $4 billion. I think that performance and that consistency is rewarding.”
But these positive tailwinds have so far failed to excite investors. Delta's stock is down about 9% in the past three months, the result of global anxiety over economic growth and trade uncertainty—two factors that could hurt airline stocks badly if they don’t improve. Delta shares closed at $53.81 on Friday, rising 1.85% on the day.
h2 3. ExxonMobil/h2ExxonMobil Corp (NYSE:XOM) may come under scrutiny this coming week after Mozambique’s government said over the weekend that the oil and gas supermajor company will sign off on a final investment decision for a liquefied natural gas project that could cost as much as $33 billion to build—making it the biggest energy project ever in Africa.
A ceremony marking the decision will take place Oct. 8 in Maputo, the capital of the southeast African nation, the Ministry of Mineral Resources and Energy said in a statement Saturday.
The 15.2-million ton per year gas liquefaction and export project is even bigger than the one that French energy giant Total (NYSE:TOT) is building nearby. Both projects will transform Mozambique’s $15 billion economy.
Exxon is in the middle of investing billions of dollars to improve its growth, diverging from other large producers that are trying to stabilize their shares by cutting back on major spending. The stock rose 1.46% on Friday to close at $68.97, but shares are down about 10% over the past three months.
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