Inflated prices or calorie counts? Deflated retailers or air-pumped sneakers? The week that lies ahead knows the truth -- and it's telling.
MondayJust when your arteries thought it was safe to enter fast food restaurants, Hardee's rolled out the Monster Thickburger. Weighing in at a heart-stopping 1,420 calories and 102 grams of fat, it definitely broke the trend of burger chains coming out with healthier fare. The eatery's parent company CKE Restaurants (NYSE:CKR) kicks off the new week with its fiscal third-quarter report.
The beast of burgers was introduced just after the period closed. That's worth noting because while the company has typically been profitable it has run up a small deficit in each of the last three fourth-quarter segments. So while digesting the last quarter's numbers is a sound strategy, it will be interesting to see whether the company has been able to cash in on the Monster Thickburger's notoriety early on to break its losing streak in the current quarter.
TuesdayIf Pier 1 (NYSE:PIR) posts a bad third-quarter come Tuesday and the stock tanks, could you call that Pier pressure? I know, lame joke, but the seas have been rough for the home-furnishings retailer as earnings are down while same-store sales have fallen this year. Back in September the company had guided investors to expect yet another decline in comps for the quarter with profits coming in between $0.28 and $0.35 a share. Yet sales at the store level ultimately fell far worse than the company expected and earlier this month Pier 1 warned Wall Street not to expect more than $0.23 a share in earnings.
While that means that the pessimism has already been priced into the stock, just because the retailer is buying back shares doesn't mean that you should necessarily jump right in as well. Until the company starts growing traffic at its stores the same advice that applies to peer pressure applies to Pier pressure. Just say no!
WednesdayWalk into a Best Buy (NYSE:BBY) and a Bed, Bath & Beyond (NASDAQ:BBBY), and you won't find too many things in common -- well, unless Best Buy carries shower radios. Yet, raise your hand if you're with me on this, it's pretty easy to confuse one ticker symbol with the other. With more Bs than a beehive, the companies are also cruel enough to report their quarterly earnings on the exact same day. Yes, that would be this day. Wednesday.
As both companies head into their peak holiday quarter you may be more anxious to hear what they have to say three months from now. However, they usually have a pretty good idea of how the season will turn out by this point. Will it be straight B's this quarter? Oh, man, let's hope not.
ThursdayIf Jeopardy's Alex Trebek reveals the following stumper -- this overnight delivery specialist is set to report earnings on this day -- you won't need Ken Jennings to spot you the appropriate response. What is FedEx (NYSE:FDX)? You got it! But it's a pretty busy day on the quarterly front as other heavies such as Nike (NYSE:NKE) and database software beast Oracle (NASDAQ:ORCL) step up to reveal their financials.
Since Nike CEO Philip Knight announced his retirement last month, investors may want to tune in to see how the succession process will play itself out. Knight has shaped the company into the awesome brand that it is today, and it's awfully hard to see that signature Swoosh as anything other than a sickle without him.
Friday
This time of year the word inflation may simply be a reminder that you need to put some more air in your child's gift bicycle tire before you strap on that bow. In the real word, inflation is a significant dictator of economic policy. The Consumer Price Index -- or CPI -- for the month of November is announced today. As a gauge of how much more folks are paying for things, the ideal situation is a slow yet gradual improvement. Prices soaring at the consumer level would mean the likelihood of higher interest rates to cool that down while deflation is never as flattering as it may sound.
So, no, CPI is not some new CBS crime scene investigation show. It breathes. It moves -- markets anyway. It's the Monster Thickburger of economic gauges. Consume it prudently and with plenty of napkins.
Until next week I remain,
Rick Munarriz
Longtime Fool contributor Rick Munarriz thinks that if he goes public he would make sure that his ticker symbol is free of the letter B. He does not own shares in any of the companies in this story. He is part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
