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Big Banks, Delta To Start Q2 Earnings Season: Investing Action Plan

Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. The Q2 reporting season gets going with earnings from Delta Air Lines and top bank stocks like JPMorgan Chase, Goldman Sachs and Bank of America. Taiwan Semiconductor also reports amid the ongoing chip shortage, and Boeing releases Q2 delivery and order data. Virgin Galactic is due to send founder Richard Branson into space.

Stocks To Watch

PayPal (PYPL) is back above a 296.11 cup-with-handle buy point after clearing a 277.96 early entry a couple weeks ago. Square (SQ) might be working on a possible handle with a 254.88 buy point. Discover Financial Services (DFS) is rebounding above its 50-day line and is forming a new flat base with a 125.48 entry. Bill.com (BILL) is near a cup-with-handle buy point of 192.99. Mastercard (MA) is near its 10-week line and could be buyable with a rebound off that support level.

Bank Earnings Seen Surging

Goldman Sachs (GS) and JPMorgan Chase (JPM) report on Tuesday. Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) report on Wednesday. Morgan Stanley (MS) is due Thursday. Analysts expect Goldman’s EPS to jumped 48% to $9.25 while revenue slides 17% $11.08 billion. JPMorgan’s EPS is seen skyrocketing 120% to $3.04, but revenue should fall 9% to $29.98 billion. Analysts see Bank of America’s EPS soaring 108% to 77 cents with revenue dipping 2% to $21.85 billion. Citigroup’s EPS is estimated to balloon 294% to $1.97, but revenue is seen declining 11% to $17.68 billion. Wells Fargo’s EPS is surging 242% to 94 cents with revenue flat at $17.83 billion. Bank stocks got a boost recently after the Federal Reserve cleared the way for bigger dividends and share buybacks.

Delta Losses To Continue

The airline reports early Wednesday. Wall Street expects Delta Air Lines (DAL) to lose $1.36 per share, as revenue rebounds from a year ago to $6.137 billion. After the coronavirus pandemic gutted the travel industry last year, Delta’s hopes for a recovery have grown, helped by leisure travel and premium seats. But more nations have imposed travel and other restrictions amid concerns over the more contagious delta variant of the coronavirus.

UnitedHealth Profit Seen Falling

The No. 1 health insurer by membership reports early Thursday, and analysts expect EPS to slide 38% to $4.40, normalizing from last year’s Q2 windfall as insured members steered clear of medical facilities and nonemergency care plunged early in the pandemic. Revenue is seen rising to $69.55 billion, up nearly 12%. In April, UnitedHealth Group (UNH) maintained prior guidance that Covid costs and deferred care could cut $1.80 per share from EPS this year. The Dow Jones stock is near a 426.08 buy point from a flat base.

Taiwan Semi Earnings On Tap

The world’s leading chip foundry reports fiscal Q2 results on Thursday. Analysts expect EPS to climb 18% to 93 cents as sales grow 25% to $13.22 billion. Taiwan Semiconductor Manufacturing (TSM) makes chips for a host of companies including Apple (AAPL), AMD (AMD), Nvidia (NVDA) and Qualcomm (QCOM).

Boeing Orders, Deliveries Due

The aerospace giant will report June and Q2 orders and deliveries on Tuesday. Boeing‘s (BA) order book should see a boost from United Airlines (UAL), which announced last month that it will buy 200 737 Max jets, in the largest aircraft order in at least a decade. European rival Airbus (EADSY) secured a 70-jet order from United last month and reported 297 deliveries in the first half of the year. Travel trends are improving as Covid-19 vaccination rates climb and airlines have been adding more flights.

Billionaire Space Race

Richard Branson’s Virgin Galactic (SPCE) SpaceShipTwo is expected to beat Amazon.com (AMZN) founder Jeff Bezos’ Blue Origin to space on Sunday. Branson’s flight is scheduled just over a week before Bezos’ Blue Origin, the first fully crewed flight for that spaceship. Both sides have thrown snarky barbs at each other with Blue Origin claiming Virgin Galactic doesn’t technically reach space and Branson saying, “Jeff who?” when asked about Bezos’ space ambitions. The Virgin Galactic livestream will start at 9 a.m. ET on Sunday and will be hosted by comedian Steven Colbert.

Economic Indicators

The Labor Department will publish its consumer price index on Tuesday and its producer price index on Wednesday amid concerns about rising inflation. Also Wednesday, the Federal Reserve will publish its beige book of regional economic and business conditions. On Thursday, the New York Fed and Philly Fed will release their business activity gauges, while the Federal Reserve puts out its industrial production report. The Commerce Department releases retail sales data on Friday as more in-store shopping resumes.

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