This Weeks Market Forecast and Big Earnings Releases

This Weeks Market Forecast and Big Earnings Releases

Is the market turning bearish?

On Tuesday, Oracle (ORCL) is probably going to unveil 4Q EPS of $1.20 vs. $1.16 the prior year on revenue of $10.9B compared to $11.1B last year. The Co sells a good sort of enterprise information technology software and hardware, and on June 10th, Bloomberg reported that the Co visited the U.S. Court of Appeals to undertake to force the Pentagon to redo the Joint Enterprise Defense Infrastructure (JEDI) bid. Oracle alleged that the bidding requirements employed by the Pentagon unfairly exclude other qualified companies from being considered for the ten year contract worth a minimum of 10 billion dollars. watching a daily chart, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $53.11 and $52.79). We are watching the ultimate target of $47.20 with a stop-loss set at $54.30. 

Also on Tuesday, H&R Block (HRB) is predicted to announce 4Q EPS of $2.97 vs. $4.32 the prior year on revenue of $1.7B compared to $2.3B within the year before. The Co provides income tax return services and its current analyst consensus rating is 1 buy, 7 holds and 1 sell, consistent with Bloomberg. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace within the short term. Moreover, the stock is trading under its 20 day MA ($17.72) but above its 50 day MA ($16.03). We are watching the ultimate target of $20.60 with a stop-loss set at $15.70. 

On Thursday, Kroger (KR) is anticipated to release 1Q EPS of $1.01 vs. $0.72 the prior year on revenue of $40.1B compared to $37.3B last year. The Co operates a sequence of superstores and corner stores, and on June 8th, Roku (ROKU), the video streaming platform announced a partnership with the Co. The deal is for Roku to use Kroger's customer data collection so as to assist companies target TV advertisements more effectively. From a chartist's point of view, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the share stands below its 20 and 50 day MA (respectively at $32.49 and $32.33). We are watching the ultimate target of $28.90 with a stop-loss set at $34.40. 

On Friday, CarMax (KMX) is awaited to post 1Q EPS of $0.05 vs. $1.59 the prior year on revenue of $2.4B compared to $5.4B last year. The Co operates a car and lightweight truck chain , and its current analyst consensus rating is 14 buy, 2 holds and 1 sell, consistent with Bloomberg. Technically speaking, the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace within the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $87.72 and $75.56). We are watching the ultimate target of $103.60 with a stop-loss set at $82.80.

Looking at the S&P 500 CFD, the index has broken below its loose support at the 200-period moving average. As long because the S&P can stay below this weeks open and new resistance of 3037, we should always expect a return to the 2936 price before heading backtrack towards 2908. If price break above 3037, we may even see a spike back towards the 3089 level. However, albeit price breaks above 3037, we could see choppy price action followed by another sell-off given the likelihood that a second wave of coronavirus pandemic could occur.