What to Watch in the Week Ahead and on Monday, January 29

AMD Industries

26/01/2024 20:13

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ON MONDAY:

Dallas Fed is likely to report the manufacturing output index for January. The
index fell 9.30 in December.

Franklin Templeton is scheduled to report its first-quarter earnings. The asset
manager's profit is expected to jump as it cuts costs to soften the impact of a
drop in assets under management.  

The CEOs of AerCap, Avolon, SMBC and Air Lease, the world's four largest
aircraft lessors, are expected to speak alongside executives from Boeing and
Airbus on the first day of an annual gathering of financiers who own more than
half of the world's fleet of passenger aircraft. Other speakers include
treasurers at IAG, American Airlines, United Airlines and Emirates. Reuters will
also interview Aengus Kelly, head of the world's number one lessor AerCap.


REST OF THE WEEK:

On Tuesday, the Federal Open Market Committee (FOMC) is scheduled to begin its
two-day meeting on interest rates. It will announce its rate decision on
Wednesday, followed by a statement.  

Microsoft is expected to post its highest quarterly revenue growth in nearly two
years on strength in productivity software and Windows businesses when it
reports its fourth-quarter results on Tuesday. As the first-mover in launching
paid AI products to customers, Microsoft's report will set the expectations for
the new technology this year.
    
On the U.S. economic calendar, a closely watched report from the Labor
Department, scheduled for release on Friday, is expected to show that nonfarm
payrolls for the month of January increased by 173,000 jobs after adding 216,000
jobs in December. Unemployment rate likely rose to 3.8% for January, from 3.7%
in December. Average hourly earnings for the month probably gained 0.3%,
following a 0.4% rise in the previous month. The JOLTS report scheduled to be
published on Tuesday will show job openings likely fell to 8.750 million during
the month, from 8.790 million in November. On Thursday, data is likely to show
that Initial jobless claims for the week ending January 27 likely slipped to
210,000 from 214,000 in the prior week. Also on Thursday, the Institute of
Supply Management's Manufacturing PMI for January is expected to have dropped to
47.3 from 47.4 in the previous month. The S&P Global's final reading of
manufacturing PMI for January is also set to be released on Thursday.
Additionally on Thursday, the Census Bureau is set to release the construction
spending data for December, which is expected to have increased 0.5% after a
0.4% rise in November. On Friday, the Commerce Department will release the
December factory orders, which probably grew 0.2%, following a 2.6% gain in
November. On the same day, a University of Michigan survey is set to show that
the final reading of the U.S. Consumer Sentiment Index for January probably
remained unchanged at 78.8. On Tuesday, the Conference Board is expected to show
that the consumer confidence index rose to 115.0 in January from 110.7 in
December. 
                
Alphabet is likely to report a 12% growth in fourth-quarter revenue on Tuesday
due to increasing adoption of artificial intelligence tools and higher spending
on its cloud services. Investors are looking for Alphabet's guidance on the
growth of its AI services and related monetization efforts.

On Thursday, Meta is expected to report record revenue and lower operating
expenses for the October-December quarter. A strong uptick in ad sales during
the holiday shopping period and Meta's recent cost-reduction efforts are
expected to have boosted the results. On the same day, Amazon is likely to
report an 11% jump in fourth-quarter revenue, banking on higher artificial
intelligence workloads at its cloud division, Amazon Web Services and higher
sales during the holiday period. Investors expect the company to guide
AI-related cloud growth and retail sales for the rest of the year.

Exxon Mobil is expected to release its fourth-quarter and full-year 2023 results
before the market opens on Friday. Analysts expect the company to report
fourth-quarter results fell 35% to $9 billion, or $2.11 per share, on lower oil
prices and refining margins. Full-year net profit is estimated to be $37.4
billion, down on energy prices from $59.1 billion in 2022, according to LSEG
estimates. Results will reflect a $2.5 billion impairment charge in the fourth
quarter on a writedown of California oil and gas properties. Separately, on the
same day, Chevron releases Q4 and full-year results at 0700 and holds a
conference call on results at 1100 ET. Fourth quarter results are expected to be
lower than a year ago on weaker oil and gas prices. The company has said it
hopes to take up to $4 billion non-cash charge to oil and gas production assets
in California and for costs tied to previously sold assets.

AMD will report fourth quarter and full year 2023 results on Tuesday. Investors
will focus on indicators of AI-linked demand for AMD's semiconductors and the
company's ability to capture market share in the AI chip industry. Separately,
chipmaker Wolfspeed's revenue is expected to decline a second time in a row in
the December quarter on Wednesday.

Pfizer will report fourth quarter and fiscal 2023 results on Tuesday before
markets open. The U.S. drugmaker is expected to post its second quarterly loss
for 2023, and investors will look for updates on integrating cancer drugmaker
Seagen. Any changes to its 2024 forecast will also be closely watched.
Meanwhile, Merck is scheduled to report its fourth-quarter earnings on Thursday.
Investor focus is expected to be on sales of its blockbuster cancer therapy
Keytruda and human papillomavirus (HPV) vaccine Gardasil. Separately, on
Wednesday, Thermo Fisher Scientific is scheduled to report fourth-quarter
earnings before markets open on Wednesday. The focus will be on comments about
demand trends for this from its biotech clients and any changes to the medical
equipment maker's 2024 profit forecast. Any comments on Novo Nordisk's popular
drug Wegovy will also be closely watched as Thermo does filling work for the
drug.

On Wednesday, Boeing is expected to reveal financial targets for 2024 during its
fourth-quarter results.

On Tuesday, Starbucks is expected to report a jump in first-quarter sales,
boosted by steady demand for its pricey lattes and cold beverages from its
wealthy customer base. The coffee chain's annual forecast and comments on
consumer behavior, trends in China and the unionization wave that has swept
across its stores in the U.S. will be on top of investors' minds. Meanwhile, on
the same day, Mondelez International is expected to report a rise in
fourth-quarter revenue, helped by steady demand for its chocolates and biscuits
and higher prices. Investors will watch for comments on plans on pricing actions
and demand forecast for 2024.

General Motors is set to report lower fourth-quarter profit and revenue on
Tuesday. Investors will be watching out for commentary on its struggling
self-driving business, Cruise, as well as the financial outlook for the year.

United Parcel Service is expected to report a fall in fourth-quarter profit on
Tuesday after it delivered fewer holiday packages than in the prior year and
boosted worker pay in line with its new labor contract with the Teamsters union.

Mastercard is expected to report its fourth-quarter earnings on Wednesday.
Strong spending is expected to boost its profit, but investors will closely
analyze its forecast.

On Tuesday, JetBlue is expected to report a fourth-quarter loss. The focus,
however, will be on its merger deal with Spirit Airlines. While the company has
appealed a federal judge's ruling to block the deal, analysts say the
transaction has become very expensive. On the same day, The CFOs of United
Airlines, Riyadh Air and Wizz Air speak at the second day of the aircraft
leasing industry's flagship annual conference in Dublin alongside the CEO of
Carlyle Aviation Partners and executives from Southwest Airlines and IndiGo.

Nasdaq is expected to post a rise in fourth-quarter profit on Wednesday, helped
by a strong performance in its solutions business. On the same day, MarketAxess
is expected to report a rise in fourth-quarter profit, helped by higher
commissions.

After markets close on Tuesday, Video game publisher Electronic Arts is expected
to report a rise in third-quarter bookings, helped by a recovery in demand for
video games amid an easing macroeconomic environment.

AbbVie is scheduled to report its fourth-quarter earnings on Friday. Investor
focus is expected to be on the company's forecast for 2024 and management's
commentary on the sales erosion of Humira due to competition from biosimilars.
Separately, Boston Scientific is expected to report its fourth-quarter results
on Wednesday. Investor focus will be on its heart devices and the impact of
GLP-1 drugs on their sales. Meanwhile, HCA Healthcare is scheduled to report its
fourth-quarter earnings on Tuesday. Investor focus is likely to be on the
company's forecast for 2024 and management commentary on hospitalizations
related to respiratory diseases in the fourth quarter, as well as on recovery in
demand for medical procedures.

On Wednesday, the U.S. refiner Phillips 66 is expected to report a fall in
fourth-quarter profit due to weaker fuel prices, as fuel demand scaled back and
hurt prices. Investors will also watch for comments on any impacts from shipping
disruptions in the Red Sea, updates on its Rodeo refinery in California, and any
further outlook for 2024. Meanwhile, Marathon Petroleum is expected to report a
fall in fourth-quarter profit due to a hit in refining margins on Tuesday.

On Thursday, Royal Caribbean Group is expected to post a growth in
fourth-quarter revenue, helped by strong booking trends for cruise vacations and
higher ticket prices. Investors will eye for updates on the impact of
disruptions in the Middle East, costs and any forecast the company provides for
the upcoming year.

Cigna Group is reporting fourth-quarter earnings on Friday. The investors would
look out for the health insurer's medical costs, as some rivals have flagged
increased demand for medical care this quarter. Also, any color on outlook for
2024, and an update on sale of its Medicare Advantage unit will catch interest.
On the same day, Regeneron is set to report before markets open. The focus will
be on sales of its eye disease drug Eylea, especially the higher dose version,
and its eczema drug Dupixent. Separately, Bristol Myers Squibb is reporting
fourth quarter and full year 2023 earnings before markets open. The focus will
be on the drugmaker's 2024 outlook and comments on its M&A strategy after
announcing three multi-billion acquisitions, Mirati, Karuna Therapeutics and
RayzeBio, during the quarter.

On Tuesday, Networking gear maker Juniper Networks is expected to report a fall
in fourth-quarter revenue as companies, including telecom service providers, cut
back on spending in an uncertain economy.

Becton Dickinson is expected to report its first-quarter earnings on Thursday.
Investor focus will be on the impact of China's headwinds.

Quest Diagnostics is reporting its fourth-quarter results on Thursday. Investors
will look for color on the performance of the company's base business excluding
COVID-19 during the quarter and also the laboratory operators' 2024 outlook.

Altria Group is expected to post a marginal drop in its fourth quarter revenue
on Thursday as the Marlboro maker tackles choppy demand for traditional
combustible cigarettes and smokeless alternatives. Investors will look for
insight on promotional investments and market share performance of its NJOY ACE
vape and on! nicotine pouches.

On Friday, Condom maker Church & Dwight is expected to post a rise in
fourth-quarter revenue backed by resilient demand for its household and personal
care products despite higher prices. Investors will eye for comments on demand
and volume trends, margins, impact from costs and any forecast the company
provides for the upcoming year.

Danaher is expected to report its fourth-quarter results on Tuesday. Investors
will focus on the performance of its respiratory diagnostics and life sciences
units.

Wilson tennis racket maker Amer Sports will start trading on the New York Stock
Exchange on Thursday. In its IPO, Amer Sports aims for a valuation of $8.7
billion.

Statistics Canada will release the November Gross Domestic Product (GDP) numbers
on Wednesday. The country's economic activity likely grew marginally at 0.1% for
the month. On Thursday, S&P Global Manufacturing PMI for January will be
released.  

Parka maker Canada Goose Holdings is expected to report a rise in its
third-quarter revenue on Thursday, powered by higher prices and strong demand
for its puffer jackets. Investors will be watching out for the company's
forecast, comments on current demand trends, inventory mix, and China's
recovery.

On the Latin American front, Inflation in Brazil, as measured by the IGP-10
price index for January, is expected to be released on Tuesday. Separately, on
Wednesday, the country's employment data will be on the radar. Brazil's S&P
Global manufacturing PMI for January are due for release on Thursday.
Separately, on Friday, the country's industrial output data for December is
scheduled to be released. 
    
Meanwhile, Mexico's flash reading of the Gross domestic product (GDP) for the
fourth quarter is due Tuesday. The country's S&P Global manufacturing PMI for
January is also due for Thursday's release. Additionally, Chile's interest rate
decision for January is likely due on Wednesday, while the manufacturing output
data for December is also due on the same day.



 (Compiled by Malini K; Editing by Tasim Zahid)
 ((malini.k@thomsonreuters.com))