COVID-19 Corporate Event Impact Report 
Week of January 25, 2021
- Rising hopes, rising inflation? Interest rates moved higher as important macro trends shift in 2021
- Companies are upbeat on Q4 earnings amid more stimulus in the US
- Off-trend earnings dates that traders should monitor
Inflation in the Offing? More fiscal stimulus may be on the way in the US under President Biden. Inflation is a risk given near-term stimulus plans and intermediate-term pent-up demand. Assuming the US and Europe reach herd immunity for COVID-19 toward late Q2, it is likely that consumers around the world will start enjoying ‘the old life’ – dining out, traveling, attending events, and other recreational activities. That means more consumer spending and perhaps strong hiring trends in the developed world. |
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Traders and economists expect a spending boom once social and economic restrictions are lifted. New cars and new bikes (more on that later) will be in demand.
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Earnings Season Update
Q4 reporting season is off to a hot start. It is still early, but 88% of the first 26 S&P 500 companies to provide results have beaten Wall Street analyst EPS expectations, according to Bank of America research & FactSet data. The healthy beat-rate thus far buttresses the strong earnings quarters (relative to expectations) of Q2 and Q3 2020.
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Earnings Outlier - HOG
One company is spinning its wheels. Harley Davidson Inc. (HOG) is scheduled to report earnings and host a conference call on February 2, an unusual date for the well-known Consumer Discretionary stock. Wall Street Horizon tracks expected earnings dates closely, and HOG’s late reporting date flashed a warning signal.
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Earnings Reconfirmation - ASRV
Banks stand to benefit from the recently steepening yield curve. The sector has been among the best performers since early November. AmeriServ Financial (ASRV), a small cap headquartered in Pennsylvania, stood out with an unusual earnings date reconfirmation earlier this month. ASRV has been a high-flyer since late September, rising from $2.65 to $3.80. It’s just a $60 million market cap, so this stock will be volatile on news.
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Conclusion
Earnings season is in full swing around the world. Investors need the most accurate and up-to-date corporate event data to stay on top of this shifting market environment. Traders and portfolio managers must be tuned-in to the latest happenings and announcements made within quarterly reports and shareholder meetings. Wall Street Horizon tracks all the key events promptly for our clients.
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