In "What to Watch on Wall Street" for the week of Jan. 4, we'll have a mix of both earnings and economic reports starting off the new year.
One of the companies investors will be watching closely is Bed Bath & Beyond. For its fiscal third quarter, analysts are estimating $1.09 a share on revenue of nearly $3 billion.
Compared to a year ago, earnings are projected to drop while sales are expected to go up. During the same period of last year, the company earned $1.19 a share on revenue of $2.94 billion.
Overall, analysts are siding with the bears for the upcoming quarterly results because the company recently lowered its third quarter outlook. It now expects to earn between the range of $1.07 to $1.10 a share, below its previous range of $1.14 to $1.21 a share.
Additionally, the company said that comparable store sales are expected to decline by 0.4%, compared to its previous outlook of an increase of 1% to 3%.
Following this news, Cantor Fitzgerald lowered its price target to $50 from $53, adding, "We remain on the sidelines given the negative momentum in Bed Bath & Beyond's business." The firm is maintaining its "hold" rating on the stock.
Also in the upcoming week, there are several economic reports to look out for. We'll begin the week with the PMI manufacturing index and ISM manufacturing index. On Tuesday we'll get motor vehicles sales.
Midweek, we'll receive international trade data followed by jobless claims on Thursday.
Last but not least, we'll end the week with the U.S. employment situation released by the Bureau of Labor Statistics. This is important since the Federal Reserve will be closely watching it.
TheStreet's U-Jin Lee reports from New York.