• By: CHARLES ROTBLUT

  3360

  
  Many retailers will start reporting second-quarter results this week, including Dow component Wal-Mart (WMT) and fellow S&P 500 members J. C. Penny (JCP), Nordstrom (JWN), Kohl's (KSS), Macy's (M) and TJX Companies (TJX). In total, 20 retailers are on this week's calendar. The overall number of earnings announcements will decline with just 282 companies confirmed to report. Outside of the retail sector, traders will also look at the numbers from Applied Materials (AMAT) and Deere & Co (DE). Fewer than 20 S&P 500 members companies will announce second-quarter profits. Key economic reports will include: * Tuesday: June trade deficit * Wednesday: July retail sales, July import prices, June business inventories, weekly crude inventories * Thursday: July CPI, weekly initial jobless claims * Friday: July industrial production and capacity utilization, August New York Fed manufacturing survey, preliminary August University of Michigan consumer confidence The Federal Reserve's web site does not list any upcoming speeches from Fed officials. August option contracts will expire on Friday. Companies That Could Issue Positive Earnings Surprises Last week, discount retailer TJX Companies (TJX) raised its fiscal second-quarter EPS guidance to a range of 46 to 47 cents, excluding a two cent per share impairment charge. The company cited a 3% increase in July same-store sales and "lean" clearance levels. Following the update, 2 of the 9 covering brokerage analysts raised their forecasts to 47 cents per share. The revisions were not enough to push the consensus earnings estimate above its current level of 44 cents, though the most accurate estimate is slightly more bullish at 45 cents per share. TJX has beaten expectations during 3 out of the past 4 quarters. TJX Companies is scheduled to report on Tuesday, Aug 12, before the start of trading. Companies That Could Issue Negative Earnings Surprises Last month, NVIDIA (NVDA) warned that its second-quarter revenues and margins would be below guidance. The company blamed weakening demand, the delayed launch of a new product and downward pricing pressures. Since the announcement, the consensus earnings estimate has dropped from 28 cents per share to 9 cents per share. The most accurate estimate is more bearish at 1 cent per share. Last quarter, the video processor maker missed expectations by three cents per share. NVDIA is scheduled to report on Tuesday, Aug 12, after the close of trading.

  For more information visit http://www.zacks.com/commentary/8272/Earnings Preview for Aug 11 - 15 827200

ha00