Early Indicators of Second Quarter Earnings Reports

The second quarter earnings season will kick off on July 12, but several earnings reports that will come out this week could provide investors with early indications of the health of their sectors.

 

Micron [[MU]]

Micron’s report on Monday will give investors an early indicator of the mobile internet and PC market. The company’s flash chips are used in smart phones.

 

Barnes and Noble [[BKS]]

The book retailer’s earnings report will be an early indicator of Amazon’s [[AMZN]] second quarter earnings performance. Both Amazon and Barnes and Noble have slashed prices on their e-readers in an effort to compete with the Apple’s [[AAPL]] ipad.

 

General Mills [[GIS]]

GIS is the primary defensive stock reporting earnings this week. Recent activity would indicate that investors are flocking to defensive stocks as the uncertainty in the market goes up. Last week, ConAgra [[CAG]] reported disappointing earnings results, but the stock barely even dipped. Mad Money host Jim Cramer recommends GIS as a buy regardless of its earnings report. The stock has a low P/E multiple, a respectable 2.6% dividend yield and a great management team.

 

Monsanto [[MON]]

Monsanto stock has plunged this year and seems to be hitting new 52-week lows almost every day. Even at its current levels, the stock is still unattractive given the judicial ruling on its competitive practices. However, investors should pay attention to commentary from the company about the health of their sector. Positive commentary would be a bullish indicator for Potash [[POT]], Agrium [[AGU]] and Deere [[DE]].

 

BP [[BP]]

While BP is not reporting earnings this week, they remain one of the top stories for investors to keep an eye on. Negative news on BP continues to weigh on the energy sector.

 

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