How DJIA Earnings Could Make or Break This Rally

July 14, 2016 by Chris Lange

With the Dow Jones Industrial Average (DJIA) hitting new all-time highs this past week, we have to wonder what we have in store going forward as earnings reporting ramps up. Consider this: one-third of the 30 DJIA stocks are reporting this coming week. It is undeniable that these earnings reports will help set a course for the market, whether the DJIA is going to push new highs or back off its current position.

The overriding question going forward is whether these earnings will signal the fundamentals that most analysts are looking for to sustain these new highs.

We are just kicking off earnings season, in which most major companies will report, and 24/7 Wall St. has put together a preview of some these companies reporting their quarterly results in the next week. We have included the consensus earnings estimates from Thomson Reuters and a recent trading history, as well as added some additional color on each.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

International Business Machines Corp. (NYSE: IBM) will share its most recent quarterly results on Monday. The consensus estimates call for earnings per share (EPS) of $2.88 and $20.03 billion in revenue. Shares closed at $158.02 on Wednesday, in a 52-week trading range of $116.90 to $173.78. The stock has a consensus analyst price target of $143.71.

Goldman Sachs Group Inc. (NYSE: GS) is scheduled to reveal its second-quarter results on Tuesday. The consensus estimates call for $3.00 in EPS, as well as $7.58 billion in revenue. Shares closed at $157.92 on Wednesday. The consensus price target is $177.57, and the 52-week trading range is $138.20 to $214.61.

Johnson & Johnson (NYSE: JNJ) is set to report its fiscal second-quarter results on Tuesday. The consensus estimates call for EPS of $1.69 and $17.99 billion in revenue. Shares were changing hands at $123.00 at the most recent close. The consensus price target is $118.56, and the 52-week range is $81.79 to $123.45.

Microsoft Corp. (NASDAQ: MSFT) is scheduled to report its fiscal fourth-quarter results on Tuesday. The consensus estimates call for $0.58 in EPS and revenue of $22.14 billion. Shares ended Wednesday at $53.51. The consensus price target is $58.00. The 52-week range is $39.72 to $56.85.

UnitedHealth Group Inc. (NYSE: UNH) is expected to share its latest quarterly earnings on Tuesday. The consensus estimates are $1.89 in EPS and $45.05 billion in revenue. Shares were at $141.48 on Wednesday’s close, in a 52-week range of $95.00 to $142.96. The consensus price target is $150.86.

American Express Co. (NYSE: AXP) is set to report its second-quarter results on Wednesday. The consensus estimates are EPS of $1.92 and $8.31 billion in revenue. Shares were changing hands at $63.10 at the most recent close. The consensus price target is $67.65, and the 52-week range is $50.27 to $81.66.

Intel Corp. (NASDAQ: INTC) will share its latest quarterly earnings on Wednesday as well. The consensus estimates call for $0.53 in EPS on $13.54 billion in revenue. Shares closed at $35.01 on Wednesday, in a 52-week range of $24.87 to $35.59. The consensus price target is $36.02.

Travelers Companies Inc. (NYSE: TRV) is scheduled to reveal its second-quarter results on Thursday. The consensus estimates are $2.12 in EPS, as well as $6.37 billion in revenue. Shares were last trading at $118.00. The consensus price target is $113.47. The 52-week trading range is $95.21 to $119.30.

Visa Inc. (NYSE: V) is scheduled to report its fiscal third-quarter results on Thursday. The consensus estimates call for $0.67 in EPS and revenue of $3.67 billion. Shares of Visa closed at $77.46 on Wednesday. The consensus price target is $88.43. The 52-week range is $60.00 to $81.73.

General Electric Co. (NYSE: GE) is set to report its second-quarter results on Friday. The consensus estimates are EPS of $0.46 and $31.76 billion in revenue. Shares were changing hands at $32.36 on Wednesday’s close. The consensus price target is $33.00, and the 52-week range is $19.37 to $32.50.

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