What to Watch in the Day Ahead - Thursday, October 27

Ambev SA

26/10/2022 19:31

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Wall Street expects Apple Inc to report a rise in fourth-quarter revenue, driven by higher
demand for iPhones and iPads ahead of the holiday quarter. Analysts expect sales of its services
such as Apple Music and Apple TV+ to rise. Investors will also watch for management's comments
on demand ahead of the crucial holiday season. 
In its advance gross domestic product (GDP) estimate, the Commerce Department is likely to
report that GDP rose at a 2.4% annualized rate in the third quarter, following a 0.6% fall in
the previous quarter. The Labor Department is expected to show initial claims for state
unemployment benefits increased by 6,000 to a seasonally adjusted 220,000 for the week ended
Oct. 22. Continued jobless claims is likely to rise to 1.388 million for the week ended Oct. 15.
Orders for durable goods are expected to rise 0.6% in September, after declining 0.2% in August.
The personal consumption expenditures (PCE) price index preliminary for the third quarter is
scheduled for release. Core personal consumption expenditures price index preliminary is likely
to have risen 4.5% in the third quarter, after rising 4.7% in the previous quarter. 
Amazon.com Inc is expected to post a rise in third-quarter revenue, driven by resilient demand
for online shopping and its cloud-computing services despite rising inflation. 
Chipmaker Intel Corp is expected to report a decline in third-quarter revenue as demand for PCs
worsen. The weakness is also seeping into the data center market.
Mastercard Inc is expected to report a rise in third-quarter revenue and profit, as consumers 
shrug off higher prices and continue to spend on travel and leisure despite decades-high
inflation. Analysts and investors would watch out for executive commentary on the outlook for
spending and consumer strength amid a weakening macro environment.
McDonald's Corp is expected to report an increase in third-quarter comparable sales, boosted by
higher menu prices and product launches. Still, the potential for demand to slow in
inflation-hit markets such as Europe and the impact of a stronger dollar remain a concern for
the burger chain. 
T-Mobile US Inc is expected to post a slight increase in third-quarter revenue. Analysts are
concerned about profits as T-Mobile refused to raise prices to beat inflation and has been
spending on promotions to sign-up new subscribers. Postpaid phone additions are also in focus as
Americans upgrade to 5G plans. Separately, Comcast Corp is expected to post a slight fall in
third-quarter revenue. Investors will focus on demand in Comcast's broadband business, with
advertising revenue falling amid a broader slowdown.
Caterpillar Inc is expected to report a rise in third-quarter profit and revenue, helped by
resilient demand for its equipment and services.
Merck & Co will report its third-quarter earnings before market opens. Investor focus is
expected to be on its blockbuster cancer drug, Keytruda, human papillomavirus vaccine Gardasil
and COVID-19 drug molnupiravir. 
Northrop Grumman Corp is expected to post lower profit for its third quarter, hurt by supply
chain woes.
Shopify Inc is expected to report growth in third-quarter revenue. Investors will, however, keep
an eye on its forecast for the holiday quarter as consumers hold back on shopping online in an
inflationary environment.
U.S. shale producer Pioneer Natural Resources Co is expected to post higher third-quarter profit
on soaring oil prices. Analysts will look for commentary on share buybacks, dividends and the
impact of inflation on the company's outlook.
Alphabet Inc's Google will ask a San Francisco federal court to dismiss a proposed class-action
lawsuit filed by a group of restaurants that say the search giant's "Order Online" button
misuses their names to divert business from their websites to delivery services like Postmates
Inc, DoorDash Inc and Grubhub Holdings Inc. Google told the court that, among other things, its
use of the restaurants' names to describe their own food and delivery options is fair use under
trademark law.
Mexico's trade balance data for September is set for release. The country's trade deficit is
likely to shrink to $4.815 billion in September from $5.498 billion in August. Meanwhile, its
jobless rate for September is likely to remain unchanged at 3.5%. Separately, Brazil's
unemployment rate is expected to rise to 8.7% in September, after gaining 8.9% in August.
Brazilian airline Gol Linhas Aereas Inteligentes SA reports its third-quarter results. Analysts
polled by Reuters forecast a 412.9 million-real net loss. 
Brazilian brewer Ambev SA reports third quarter results. Analysts forecast a 2.5 billion reais
net income. 
Grupo Televisa S.A.B is set to report third-quarter earnings. The spotlight will be on a revamp
of its Sky satellite television unit and revenue from its new streaming service.
 (Compiled by Shreya Sabharwal in Bengaluru; Editing by Shinjini Ganguli)
 ((Shreya.Sabharwal@thomsonreuters.com;))