Markets are likely to remain volatile in the final week of the third quarter amid fears of financial contagion coming from Chinese property developer Evergrande.
Holders of China Evergrande Group's (HK:3333) (OTC:EGRNY) dollar-denominated bonds remain on edge after the real estate giant missed a coupon payment deadline on Thursday. Adding to market worries, staff at the Shenzhen-based company's electric vehicle business haven’t been paid, and European banks are trying to reassure investors that their exposure is limited.
Evergrande’s default risks and its possible impact on the global markets sent stocks tumbling at the start of the trading week this past Monday. Those losses, however, were reversed by Thursday. The S&P 500 and Dow Jones finished positive on Friday and for the week, while the NASDAQ ended flat.
Beyond these macro trends, we're following three stocks which could see some action when markets open, based on company-specific developments.
1. Micron Technology
Semiconductor-maker Micron Technology (NASDAQ:MU) is set to report earnings on Tuesday, Sept. 28, after the market close. The storage chip manufacturer is estimated to have made $2.33 in profit per share on $8.23 billion in revenue for its FY2021, fourth quarter.
The Boise, Idaho-based chip manufacturer, which is the biggest U.S. maker of computer memory chips, provided a revenue forecast for the last quarter that was in line with analysts’ projections, indicating solid demand for semiconductors that store data in computers and phones.
Chief Executive Officer, Sanjay Mehrotra, said in March that memory chip demand will remain strong and supply tight into next year. Cars, servers, and other devices require more memory than they once did, while companies and consumers are spending on everything from smartphones to networking, he said.
Micron shares closed on Friday at $74.05 on Friday, after remaining little changed this year.
2. Bed Bath & Beyond
The U.S. home furnishings and housewares giant, Bed Bath & Beyond (NASDAQ:BBBY) reports its fiscal 2021 Q2 earnings on Thursday after the market close. Analysts expect the retailer to produce $0.52 a share loss on sales of $2.06 billion.
BBBY is in the middle of a massive turnaround effort in order to survive the onslaught of e-commerce giants after failing to revamp its business model ahead of the pandemic. As part of its makeover attempt, the retailer has exited non-core businesses, closed underperforming stores, and is using the store's brands as a way to draw in shoppers to products that can only be purchased at Bed Bath & Beyond.
In June, the retailer said its losses narrowed in Q1, while it lifted its sales guidance for the year. Shares of Bed Bath & Beyond rallied more than 40% this year, closing on Friday at $22.95.
The stock has been gaining momentum as the company's management launched three private label brands in the past quarter, putting a key element of its turnaround strategy ahead of schedule.
3. Toast
Shares of newly listed Toast (NYSE:TOST), a company that makes software and point-of-sale hardware for restaurants, will be in focus after the company raised $870 million in its initial public offering this past Wednesday.
The Boston-based company's stock opened at $65.26 on Wednesday, up 63% from the $40 offering price. Toast sold 21.7 million shares on Tuesday after marketing them at $34 to $36 apiece.
But after the initial surge, shares have dropped 15%, closing on Friday at $55.78. Toast’s software allows diners to order online, in person, or over the phone. Restaurants can also use the guest data it captures to craft loyalty and marketing programs.