There's never a dull week on Wall Street. Let's go over some of the news that will shape the week to come.
Monday
It's Memorial Day on Monday, and that means that all of the country's market exchanges are closed. Trading resumes on Tuesday, so give the ticker tape-watching a rest.
Tuesday
The abridged trading week keeps off with Qihoo 360 (QIHU.DL) reporting quarterly results after the market close. The company behind China's leading Internet browser and security software suite has turned heads since rolling out its own search engine two summers ago. It's been gaining market share, and Baidu (BIDU -1.36%) has responded by throwing its weight behind other online initiatives including online video, group-buying sites, and mobile apps.
The end result is that both companies are growing quickly despite Qihoo 360's invasion of Baidu's turf. We already saw Baidu post first-quarter results, where revenue soared a better-than-expected 59%. On Tuesday analysts see Qihoo 360's top line shoot 108% higher.
Wednesday
SeaDrill (SDRL) checks in on Wednesday. Wall Street sees SeaDrill's profitability slipping despite a double-digit percentage gain in revenue. Analysts may come off as conservative, targeting just $0.68 a share in earnings, but they have actually overestimated SeaDrill's bottom-line showing in back-to-back quarters.
Net income is a pretty big deal for SeaDrill because investors are drawn to the offshore drilling contractor because of its fat quarterly dividends. SeaDrill shares currently yield 11.1%, but that won't be sustainable if earnings keep going the wrong way.
Thursday
Splunk (SPLK) was a hot IPO two years ago, championing in the era of big data. However, the only thing that's been big lately is disappointment. Splunk shares have shed more than half of their value since peaking three months ago, part of the broader correction that has seen many former tech darlings retreat sharply this year. Splunk also helped seal its fate by putting out soft quarterly results last time out, making Thursday's performance that much more important.
Friday
The final trading day of the week is quiet, but that can't be said about Netflix (NFLX -2.52%). The leading premium video service is rolling out the second season of Derek. The Ricky Gervais series hasn't resonated the way some of his earlier successes have done in the past. This isn't The Office or even Extras. However, it debuts just seven days before the more widely anticipated second season of Orange Is the New Black starts streaming.
