Nike, Bed Bath & Beyond, Micron to report earnings this week

Yahoo Finance's Alexandra Semenova joins the Live show to discuss the expectations for earnings this week.

Video transcript

BRIAN SOZZI: All right, as you might have guessed it, there is a lot on tap for the markets this week. Notably, more public comments from Fed chief Jerome Powell and other Fed members. We also have a few notable earnings on the calendar as well, including Nike. Let's dive into the week ahead with Yahoo Finance's Alexandra Semenova. Alexandra.

ALEXANDRA SEMENOVA: Well, guys, the earnings season will kick off in full force next month, but we do still have some headliners on tap for the week ahead, including Nike, all of which could be an indicator of what's to come, as companies begin to report on a broader scale.

Now, with Nike, the themes to watch on Thursday are the impact of inflation and macroeconomic headwinds on their margins, a potential downward outlook revision, and inventories that are expected to remain high. Cowen, which recently trimmed its price target on Nike, said that it expects lower growth estimates from the company, citing a strengthening US dollar and those bloated inventories.

We'll also have earnings from Bed, Bath, and Beyond. That is going to be a big one after the quarter that they have had. Micron and Rite Aid are also set to report. And October is going to start a very consequential earnings season because Wall Street is just starting to slash its EPS estimates, as companies start to face pressure from inflation and rates. We're also seeing the most companies citing the word "recession" on their earnings calls since at least 2010. That's according to FactSet.

BRAD SMITH: All right, we're going to be watching those earnings. What else are we keeping close tabs on this week?

ALEXANDRA SEMENOVA: Well, the week ahead is all about just how bad the selloff can get. All eyes are on the S&P 500, as it appears to retest that June 16 low amid mounting worries that the Fed might over tighten and tip the economy into recession, and now also turmoil and currency markets adding to that pressure. Morgan Stanley's Mike Wilson just said that a Fed pivot is undeniably off of the table and saying his team remains highly convicted that the bear market in stocks won't end until the S&P 500 reaches a range of 3,000 to 3,400.

It's also a busy week for Fed speak, with a lot of central bankers scheduled to deliver public remarks. And investors will have a hefty docket of economic releases. We have PC inflation on tap. We have durable goods orders, new home sales, consumer confidence, and a third estimate on GDP.

BRIAN SOZZI: Well, no disrespect to Mike Wilson, friend of the show. I'm really excited for that Bed, Bath & Beyond earnings report. It's going to be--

ALEXANDRA SEMENOVA: It's going to be an interesting one for you.

BRIAN SOZZI: Yes, indeed, it is. Alexandra Semenova, thanks so much. Appreciate it.

ALEXANDRA SEMENOVA: Thanks, guys.