Here are the 5 things we’re watching in the stock market in the week ahead
Second-quarter earnings season on Wall Street has gotten off to a mostly strong start, and it’s picking up steam in the week ahead. It’s also a quiet week of economic data, putting an even brighter spotlight on the results and commentary across the corporate world. Within the portfolio, we’ll hear from Danaher , Capital One , GE Vernova , Honeywell and Dover . Here’s what we’re looking for from each company (all revenue and earnings estimates are from LSEG). 1. Danaher reports before the bell Tuesday, and our expectations are still pretty low despite the life-sciences firm showing signs of life in the first quarter . That became even more true after fellow Club health-care name Abbott Labs reported underwhelming results in its China business — also a key market for Danaher at around 11.5% of sales, according to FactSet. T o be sure, management has already baked a mid-to-high single-digit decline for its China business into the full-year guidance due to the government’s policy aimed at lowering drug and device costs. While we’ve booted Danaher from our list of “core holdings,” we’ve kept owning it partially on hopes that a leadership shakeup could occur. Another potential positive for Danaher is the thawing initial public offering market, a long-awaited development because biotechnology companies that IPO often use those proceeds to buy equipment and other products needed for drug development from the likes of Danaher. This will take some time to materialize in the numbers, but it’s something to watch. Revenue: $5.84 billion Earnings per share: $1.64 2. We’ll hear from Capital One Financial after the close Tuesday, and we’re patiently awaiting a progress report on the Discover acquisition , particularly any updates on synergy expectations and moving debit card transactions to Discover’s payments networks. At the time of Capital One’s first-quarter earnings report in April, the $35 billion deal was not yet finalized. Now that the deal has closed and the Federal Reserve’s annual stress tests have been completed, we may finally get an updated buyback program from Capital One. It could be big, with analysts at TD Cowen modeling $9.2 billion worth of repurchases next year and $6.4 billion in 2027. More generally, we’ll be watching Capital One’s delinquency trends and the amount of money it sets aside to cover potential losses. CEO Richard Fairbank has emphasized that its customers are staying resilient in the face of an uncertain economic backdrop, and we’ll look for that to remain the case. Revenue: $12.7 billion Earnings per share: $3.72 3. GE Vernova , one of our hottest stocks since joining the portfolio in April, is slated to report Wednesday morning. Beyond the usual revenues and profits, an important financial metric for industrials like GE Vernova is orders. Bank of America said in a Thursday note it expects a better-than-expected result there, modeling $11.8 billion in orders, which analysts said is 6% above consensus. That’s not too much of a surprise considering all the upbeat updates surrounding AI data center demand during the quarter and the company’s own announcements of orders . The question is how much of this positive news is priced into the stock ahead of that print? It’s hard to answer that, which is why we booked some profits Thursday. We still really like the story for the long term, but we just wanted to stay disciplined in case the results don’t live up to the loftiest of expectations. With a stock this hot, even a good quarter can be met with selling. Revenue: $8.8 billion Earnings per share: $1.51 4. Honeywell is one of two Club industrials set to report Thursday morning, and analysts at Bank of America are projecting a beat-and-raise quarter that prompts Wall Street to raise their earnings estimates, supporting the stock. With Honeywell’s management doing a better job of being conservative with its guidance this year, particularly on weaker segments like automation, BofA’s prediction seems reasonable to us. Plus, GE Aerospace’s quarter last week bodes well for Honeywell’s crown jewel aerospace business. Discussion about Honeywell’s breakup plans also figures to be prominent on the earnings call. Revenue: $10.07 billion Earnings per share: $2.66 5. Dover is our other industrial on Thursday’s earnings docket. Like a few analysts on Wall Street, we see a positive setup for Dover. The primary reason: When the conglomerate reported in late April, executives lowered their full-year outlook on organic revenue growth and adjusted earnings per share to protect against a potential tariff-driven slowdown. That was “purely a top-down mechanical adjustment” based on sentiment, not any changes in order patterns, CEO Richard Tobin said at the time. With the tariff outlook much improved now that the U.S. and China have agreed to a trade truce, Dover’s understandable conservatism could be revisited. Dover’s book-to-bill ratio, a measure of how many orders are coming in versus being fulfilled, will shine a light on whether order patterns have indeed proved resilient. Dover also has made a few acquisitions lately to remake its portfolio toward more attractive markets, so we’ll be listening to management’s commentary on these deals and capital allocation priorities more broadly. The weaker U.S. dollar is another dynamic to watch here. Revenue: $2.04 billion Earnings per share: $2.39 Week ahead Monday, July 21 Before the bell: Verizon Communications (VZ), Domino’s Pizza (DPZ), Cleveland-Cliffs (CLF) After the bell: NXP Semiconductors N.V. (NXPI), Steel Dynamics (STLD), Calix (CALX), Crown Holdings (CCK), Agilysys (AGYS), BOK Financial Corp. (BOKF) Tuesday, July 22 Richmond Fed manufacturing index at 10 a.m. ET Before the bell: Danaher Corp. (DHR), Coca-Cola Company (KO), Lockheed Martin Corp. (LMT), Philip Morris International (PM), RTX Corporation (RTX), D.R. Horton (DHI), General Motors Corp. (GM), KeyCorp (KEY), Northrop Grumman Corp. (NOC), Quest Diagnostics (DGX), MSCI Inc. (MSCI), PulteGroup (PHM), Tenet Healthcare Corp. (THC), Halliburton Company (HAL), IQVIA Holdings (IQV), Synchrony Financial (SYF), Valmont Industries (VMI), Avery Dennison Corp. (AVY) After the bell: Capital One Financial Corp. (COF), Intuitive Surgical (ISRG), SAP (SAP), Enphase Energy (ENPH), Matador Resources Company (MTDR), Range Resources Corp. (RRC), CoStar Group (CSGP), Baker Hughes (BKR), Chubb Corporation (CB), EQT Corporation (EQT), Pegasystems (PEGA), Texas Instruments (TXN) Wednesday, July 23 Existing home sales at 10 a.m. ET Before the bell: GE Vernova (GEV), Freeport-McMoRan Copper & Gold (FCX), AT & T Corp. (T), Amphenol Corp. (APH), Fiserv (FI), Thermo Fisher Scientific Inc. (TMO), General Dynamics Corp. (GD), Mr. Cooper Group (COOP), Lamb Weston Holdings (LW), NextEra Energy Inc (NEE), Hasbro (HAS) After the bell: Tesla (TSLA), Alphabet (GOOGL), ServiceNow (NOW), International Business Machines Corp. (IBM), Chipotle Mexican Grill (CMG), Quantumscape Corp (QS), Alaska Air Group (ALK), O’Reilly Automotive (ORLY), Churchill Downs (CHDN), United Rentals (URI), Molina Healthcare (MOH), Sonoco (SON), Knight-Swift Transportation Holdings (KNX) Thursday, July 24 Initial jobless claims at 8:30 a.m. ET New home sales at 10 a.m. ET Before the bell: Honeywell International (HON), Dover (DOV), American Airlines Group Inc. (AAL), Blackstone (BX), Dow Chemical Co. (DOW), Nokia Corp. (NOK), Southwest Airlines Co. (LUV), Nasdaq (NDAQ), Union Pacific Corp. (UNP), CenterPoint Energy (CNP), CNX Resources Corporation (CNX), Flex (FLEX), West Pharmaceutical Services (WST), Darling Ingredients (DAR), Keurig Dr Pepper (KDP), L3Harris Technologies (LHX), Pool Corporation (POOL) After the bell: Intel Corp. (INTC), Newmont Mining Corp. (NEM), Deckers Brands (DECK), Physicians Realty Trust (DOC), Scholastic Corp. (SCHL), Boyd Gaming Corp. (BYD), Coursera (COUR), Edwards Lifesciences Corp. (EW), Columbia Banking System (COLB), Hexcel Corp. (HXL), Mohawk Industries (MHK) Friday, July 25 Before the bell: Centene Corporation (CNC), AutoNation (AN), HCA Healthcare (HCA), Booz Allen Hamilton Holding Corporation (BAH), Charter Communications (CHTR), Gentex Corp. (GNTX), AON Plc (AON) (Jim Cramer’s Charitable Trust is long ABT, DHR, COF, HON, DOV and GEV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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