Ready For A Big Week Of Earnings?

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET](~/AASl5QA~/RgRmKNhDP0RnaHR0cDovL2JpdC5seS9Kb2luVEFsZ29MSVZFP19reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2poSExoaHI2azIwbFpVVlJ1dWRPOEJBR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgpkP0NTRmQmYXFiUht0cmlzdHJhbWJhbGR3aW44OEBnbWFpbC5jb21YBAAEC1Y~) [Shadow] Hello investor, We are due for a busy week of earnings. Big Tech companies, including Google, Amazon, Microsoft, and Meta will report their results, along with key companies from the food, pharmaceutical and energy sectors. There will be 180 companies in the S&P 500 that will report in the coming days. But will they matter much? Morgan Stanley CEO James Gorman said the biggest worry is where the peak rate will be at. He didn’t think that the speculation on whether the economy is heading into a recession matters much. Why? It is going to be all about inflation. If it is not “tamed,” the central bank may have no choice but to keep hiking at the expense of the economy. - “Whether it’s a modest recession or we dodge that bullet sort of doesn’t matter that much,” Mr. Gorman said. “What really would matter is if inflation is not tamed, Fed has to go much higher than people are expecting, you go into a much deeper recession,” said Morgan Stanley CEO James Gorman. Morgan Stanley CEO James Gorman Interestingly, of those 18% of S&P 500 companies that reported, the average revenue growth was 2.1%. The story was different for profits, though. Corporate earnings fell 6.2% from a year earlier, indicating margin pressures. Earnings reports from Coca-Cola, Pepsi Co, McDonald’s, Hershey, and Mondelez will offer insights into consumers’ spending behavior. Household-product makers Kimberly-Clark, Church & Dwight, and Colgate-Palmolive will also bring an extra look into how much consumers are willing to spend for everyday products. Telecommunication giants, Verizon, Comcast, and T-Mobile will report after AT&T said last Thursday that it is seeing signs of U.S. consumers tightening their budgets. Visa and Mastercard have probably the closest look at the state of consumers with their data on current debt and credit-card spending habits, and these companies will report this week as well. Week Ahead Notable Earnings - Monday: AGNC Investment, Alexandria Real Estate Equities, Bank of Hawaii, Cadence Design, Cleveland-Cliffs, Coca-Cola, Crane, First Republic Bank, Packaging Corp, Philips, PotlatchDeltic, Range Resources, WesBanco, Whirlpool - Tuesday: Microsoft, Alphabet, Visa, PepsiCo, McDonald’s, United Parcel Service, Verizon, General Motors, Chipotle Mexican Grill, Danaher, Halliburton - Wednesday: Meta Platforms, Align Technology, AllianceBernstein, American Tower, Automatic Data, Boeing, Boston Scientific, C.H. Robinson Worldwide, Canadian Pacific, CME Group, Dover, eBay, Ethan Allen, General Dynamics, Graco, Helen of Troy, Hess, Hilton, Humana, Lending Club, Mattel, Norfolk Southern, Old Dominion, O’Reilly Automotive, Otis Worldwide, Penske Auto, Raymond James, Roku, ServiceNow, Spirit Airlines, Steven Madden, Teladoc, United Rentals - Thursday: com, AbbVie, Activision Blizzard, American Airlines, Amgen, BJ Restaurants, Bristol-Myers, Boston Beer Co, Capital One, Caterpillar, Cloudflare, Comcast, Coursera, Crocs, Domino’s Pizza, Eli Illy, Golead Sciences, Grainger, Harley-Davidson, Hasbro, Hershey Foods, Hertiz Global, Hilton Grand Vacations, Honeywell, Intel, International Paper, Keurig Dr Pepper, L3Harris, Mastercard, Merck, Northrop Grumman, Pinterest, S&P Global, Snap, Southwest Air, T-Mobile US, Tractor Supply, Willis Towers Watson - Friday: Aon, Bloomin' Brands, Chart Industries, Charter Communications, Chevron, Colgate-Palmolive, Exxon Mobil, LyondellBasell, Newell Brands, Nio, Saia, W.P. Carey, WisdomTree (Photo: David Becker/AFP/ Getty Images) Top Blue-Chip Stock To Collect 12%+ Annual Return During The Bear Market Today’s Stock Pick: Cisco Systems, Inc ([CSCO](~/AASl5QA~/RgRmKNhDP0R4aHR0cHM6Ly9kYXNoYm9hcmQudHJhZGVhbGdvLmNvbS9jb21wYW55L0NTQ08_X2t4PVRKRngtMDZyYnh4NlVhSmNfTGdfamhITGhocjZrMjBsWlVWUnV1ZE84QkFHVzZXNVpZUWtaTDhJT1paT2ZBVG8uVzVwQVpXVwNzcGNCCmQ_Q1NGZCZhcWJSG3RyaXN0cmFtYmFsZHdpbjg4QGdtYWlsLmNvbVgEAAQLVg~~)) Need a low-risk pick that delivers consistent shareholder returns, but also participate in megatrends like cloud, IoT, 5G, and security? Cisco is your perfect stock. It offers the infrastructure that makes these megatrends possible. Cisco’s switches, routers, and wireless access points make high-speed WiFi possible. Its firewalls and VPNs protect businesses from bad actors. The cloud offerings make it easy for businesses to operate primarily in the cloud. And finally, its hybrid work products offer phone systems and virtual meetings. As a result, these megatrends will be a powerful tailwind that can carry Cisco for the next decade. - “There are currently more technology transitions occurring concurrently than I've seen in 20 years. Long-term megatrends like hybrid cloud, hybrid work, security, IoT, 400-gig and beyond, 5G, and WiFi 6, as well as the move toward application observability, will likely provide tailwinds to our growth,” said CEO Chuck Robbins. (Source: Cisco) Cisco just released a new networking-as-a-service (NaaS) called Cisco Plus, which combines its data center compute, networking, and storage portfolio. In short, it will unify key clouding needs into one place for companies. The company expects this to grow its recurring revenue base, offering a more stable revenue stream that may see less volatility. Solid growth: Here’s one thing to remember: Cisco is not a high-flying company. It’s a blue-chip company with steady revenue growth. The main attraction is its shareholder returns. (More on this later.) Still, its revenue is super solid. Cisco just delivered a record EPS for the full year. Annual product order growth jumped by 14% for the fiscal year, and product backlog is at a record level. This brings a clear visibility for a strong revenue growth for the fiscal 2023. Cisco emphasized that its revenue growth is constrained by supply chain issues, rather than demand. - “It's important to keep in mind that in the near term, the rate and pace of our revenue growth is much more a function of component availability than on our quarterly product order growth. With RPO of over $31 billion, almost $17 billion of which will be recognized as revenue over the next 12 months, and a record backlog, we have great top-line visibility,” said Cisco CEO Chuck Robbins. Shareholder returns: Cisco takes good care of its shareholders. In the fourth quarter alone, it bought back $2.4 billion in shares. That was 1.2% of its market cap for a single quarter of share buybacks. Its dividend yield is at 3.32% -- an above average yield for blue-chip companies. Cisco increased its dividend for 11 straight years, so it is an attractive stock for a buy-and-hold investor. All in all, Cisco returned about $14 billion in value to its shareholders via cash dividends and stock repurchases. That’s about 7% of its current market cap. Fiscal year outlook: Keep in mind that Cisco can offer a 7% annual return to shareholders through dividends and share buybacks only. And we haven’t factored into revenue growth. Cisco expects its fiscal year 2023 to see a revenue and an EPS growth of 5% at the midpoint. If we add them up, we get a 12% annual return with little risk. Executive compensations: One cool thing about Cisco is its executive compensation structure. Believe it or not, the CEO and NEOs only earn 6% of their compensations in base salary. The rest is based on performance. Nearly half will be rewarded in equity, so Cisco executives will be motivated to increase the company’s value through share prices. (Source: Cisco) Bottom line: Cisco is a perfect stock during a bear market. Its P/E is only 17, so you get a blue-chip company with an above-average dividend yield. You can expect the company to continue returning 10%+ annually. This defends you against any bear market drops. FREE LIVE TRADING SESSIONS & TRAINING USING THE MOST COMPREHENSIVE DARK POOL MONITOR AVAILABLE TO THE RETAIL INVESTOR Join our LIVE Trading Sessions throughout the day where we will focus on how you can learn to master the markets through the use of advanced algorithms and AI to trade like the institutions. BEFORE THE BELL Starts 6am PT / 9am ET Our newest LIVE session starts when the big institutions and elite traders do, well before the market opens. We'll look at realtime dark pool data as the market movers position themselves for the tra ding day in the secret off market exchanges. LIVE TRADING SESSION Starts 8am PT / 11am ET Take advantage of Trade Algo's proprietary advanced algorithms for anticipating big market swings in our daily LIVE trading session. Trade Algo's Senior Analyst Luke Russell will walk you through the key tools and strategies that the institutional investors and top traders use to profit from high volatility in the market. THE FINAL HOUR Starts Noon PT / 3pm ET According to Wall Street Journal approximately 20% of the trading volume happens at the last 30 minutes of the day. Institutions make the majority of these trades in private dark pool exchanges -- away from the public’s eyes. The timing happens for two reasons: 1) Index funds make their trades to mimic the closing price of a stock. 2) Billionaires trade near the end of the day because they anticipate major news that will be released during after-hours. Because they trade in dark pools, the public doesn’t know about these trades until one day later. We’ve consistently spotted the correlation between a spike in dark pool volume at the end of the day and the next day’s price movement. In the Golden Hour we will identify and analyze these movements so you can trade with confidence. CATCH THE SPARK Starts 4pm PT / 7pm ET Catch The Spark is led by trading expert Luke Russell, starting at 4pm PT / 7pm ET. Open to all this session is a recap of the day and a prep for the next trading day with an emphasis on identifying and examining "spark" orders, those large institutional trades taking place behind closed doors in off-market exchanges, that drive stock movement. 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