Equities weekly forecast: Macy's, Dell & easyJet

Macy’s Q3 earnings preview

Macy's is due to report earnings on Tuesday, November 26, ahead of the market open. Wall Street expects a quarterly loss of $0.01 per share, which equates to a 104.8% decline. Meanwhile, revenue is expected to be £4.72 billion, down 2.9% from the same quarter a year ago.

The earnings come after Target unnerved the market last week with cautious guidance for the holiday period.

Macy beat earnings expectations in the previous quarter but cut its sales forecast for the full year amid softness and carefulness among consumers. Management noted that customers are holding off on spending due to still high interest rates; investors will be keen to see whether that trend continues in the third quarter. The Fed only started cutting interest rates in September, the final month of Q3.

The market will also be keen to see how the company's turnaround plan is going as it closes stores and pushes to get onto a steadier footing and sustained growth.

How to trade M's earnings?

Macy’s trades in a descending channel dating back to March. The price has risen from the 2024 of 13 reached in September, grinding higher, above the 100 SMA to its current level of 16.25.

Buyers, supported by the RSI above 50, will look to extend gains above 16.50 to create a higher high. A rise above 17 takes the price above the falling channel and exposes the 200 SMA.

Immediate support can be seen at the 100 SMA at 15.80. A fall below 14.55 creates a lower low.

Dell earnings preview

Dell is set to reveal its financial standing on November 26, and investors will be watching to see if demand for its new Nvidia-powered AI servers can continue to boost the computer maker after the company lifted full-year forecasts in the previous quarter. Dell lifted its revenue forecast to come between $95.5 billion and $98.5 billion.

In Q2, Dell posted a rise in revenue year over year to $25 billion, with server and network revenues surging 80%, or $7.7 billion, owing to increasing AI demand.

Momentum in the infrastructure solutions group business is acting as a significant tailwind, with revenue at $11.6 billion, up 38% YoY; this part of the business includes AI-optimized servers powered by Nvidia chips.

Meanwhile, Dell's business is getting leaner and more efficient through the removal of layers of management. Dell announced a fresh round of job cuts in August as part of a reorganization, with a sales team unit focused on shifting to AI.

How to trade Dell's earnings?

Dell's share price recovered from the 86.00 August low, rising above its 50, 100 & 200 SMA in a bullish trend. The 50 SMA is crossing above the 2000 SMA in a bullish signal, and the RSI is above 50. Buyers will look to extend the uptrend to 150., 160, and 178, the record high,

easyJet FY results

easyJet will release the last set of full-year results under CEO John Lundgren on the 27th of November. Kenton Jarvis will take over the position in January. Expectations are for the results to show a pre-tax profit of £595 million, up from £455 million last year; beyond the headline figure, capacity is expected to grow by 8%. Meanwhile, load factor revenue per seat and cost per seat will also be in focus.

easyJet is set to take delivery of 16 Airbus aircraft in 2024, nine in the coming year, 25 in 2026, and 34 in 2027. Given this, any discussion surrounding Airbus's supply chain issues and their impact on deliveries will be worth noting.

As well as investing cash for growth, easyJet will be returning some to shareholders. After a 5-year break, the budget airline restarted dividends in September 2023 with a 4.5p payment per share. This is expected to rise to 12p per share in the year that has just ended the further rise to 14.8p for the year September 2025.

How to trade EZJ earnings?

EasyJet share price trades at approximately the same level that it started. The price has picked up from up from the 2024 low of 404, rising up the 200 SMA to 555. Buyers will need to rise above this level to create a higher high towards 600.

On the downside, sellers will look to take out the 200 SMA at 500 to bring support at 475, the October low into play.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.