What to Watch in the Week Ahead and on Monday, January 27

Ameriprise Financial

24/01/2025 19:33

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ON MONDAY
Telecom firm AT&T is expected to report a rise in revenue in the fourth quarter thanks to strong
subscriber additions and higher upgrade levels. 

The U.S. Commerce Department's Census Bureau data is projected to show new home sales in
December increased by a seasonally adjusted annualized rate of 9,000 units to 673,000 units.

Insurance broker Brown and Brown is expected to report a jump in fourth-quarter profit driven by
stronger underwriting and higher investment returns. 

For Latin America, Brazil’s December bank lending data and Mexico’s December trade balance
figures are scheduled for release.  

REST OF THE WEEK
The Federal Reserve Open Markets Committee (FOMC) is set to hold its first monetary policy
meeting of the year 2025 on Tuesday. At the conclusion of the two-day meeting on Wednesday, the
FOMC is widely expected to leave the Fed Funds Target rate unchanged in the 4.25-4.5% range,
with the possibility of the U.S. President Donald Trump’s policies factoring into the central
bank's outlook.

Four of the Magnificent Seven companies are scheduled to report their earnings in the week. On
Thursday, Apple is expected to report slower revenue growth in the first fiscal quarter due to
the slow roll out of minimal AI features, curbing enthusiasm for its iPhone line-up. On
Wednesday, Tesla is expected to report a 7.8% rise in fourth-quarter revenue. Analysts and
investors expect CEO Elon Musk to provide more details on the company's new planned cheaper
model based on the Model Y and Model 3 platforms. Additionally, Meta Platforms is scheduled to
report on Wednesday that its revenue increased 17% in the holiday quarter, driven by higher
spending from advertisers on its social media platforms. Analysts and investors will also eye
Meta's commentary on uncertainty over a potential U.S. TikTok ban and its capital spending, as
the company ramps up investments in artificial intelligence. On the same day, Microsoft is
likely to post a jump in second-quarter revenue, thanks to steady cloud consumption trends and
benefits from building out AI capacity. The tech giant's outlook for cloud revenue growth,
comments on Blackwell AI chip capacity, 365 Copilot and capital spending expectations will be on
top of investors' minds.

The U.S. investors will watch out for the Commerce Department’s report on personal consumption
for the month of December on Friday. The Personal Consumption Expenditures (PCE) price index is
expected to have increased 0.3%, following a 0.1% rise in November. Annually, PCE price index
probably rose 2.6%. Meanwhile, core PCE price index likely edged up 0.2%, after rising 0.1% in
the month prior. Consumer spending is expected to have increased 0.5%, compared with a 0.4% rise
in November, while personal income probably inched up 0.4%, after rising 0.3% in the previous
month. From the same department, advance estimates for fourth-quarter Gross Domestic Product
(GDP) are expected on Thursday. Economic growth probably slowed to 2.8% in the fourth-quarter of
2024 after a 3.1% expansion in the third quarter. Separately, Tuesday’s Census Bureau data is
estimated to show order for durable goods surging 0.8% in December, following a 1.2% drop in the
previous month. On the same day, a survey from the Conference Board is expected to show consumer
confidence jumping to 106 in January, from 104.7 last month. Separately, Labor department’s data
release on Thursday is likely to show initial jobless claims falling by 3,000 to 220,000 for the
week ending Jan. 24. Separately, on Wednesday, Census Bureau is slated to issue advance goods
trade and wholesale inventories figures for December.

Boeing, on Tuesday, is likely to report a widening quarterly loss and its biggest annual loss
since 2020 as the planemaker struggles to revive production of its strongest-selling 737 MAX jet
after a quality crisis and weeks-long strike sapped output in late 2024.
    
Among energy majors, Chevron is expected to release its fourth-quarter and full year earnings
before the market opens on Friday. The oil producer is expected to report fourth quarter per
share profit of $2.38 compared to $3.45 a year earlier. Chevron has said it expects to take up
to $1.5 billion charge to earnings for restructuring, impairments and asset sales. On Wednesday,
when Hess releases its results, its fourth-quarter profit is expected to be marginally lower
from a year-ago quarter on lower oil prices and a pulled forward payment for Guyana production
vessels. 

Caterpillar is set to report its fourth-quarter results on Thursday, with expectations of lower
profit and revenue. Investors will closely monitor the company's commentary on demand trends and
inventory restocking.
    
On Friday, Federal Reserve Board Governor Michelle Bowman is slated to speak on the economy, and
perspectives on mutual and community banks before the Northern New England CEO Summit in
Portsmouth, New Hampshire.

Among airlines, Southwest Airlines is set to report its fourth-quarter earnings on Thursday,
with expectations of higher profit and revenue. Investors will be looking for any commentary on
demand trends and pricing environment.  On Tuesday, JetBlue Airways, in its fourth-quarter
earnings, is likely to report a wider loss and lower revenue. Investors will be looking for any
commentary on demand and the company's cost saving plans.

Intel is likely to post a drop in fourth quarter revenue on Thursday. Investors will focus on
the company's strategy amidst an ongoing CEO search. Separately, wafer fab equipment maker KLA
Corp’s second-quarter revenue is expected to rise, when it reports its earnings on Thursday, on
the strong demand for chipmaking equipments as customers are investing heavily in AI chips.

Alternative asset manager Blackstone is expected to post a surge in fourth-quarter profit on
Thursday fueled by a jump in fee-related earnings. The firm’s profit is likely to be boosted by
a resurgence in dealmaking globally and lower interest rates. Analysts and investors will focus
on executive timelines for a rebound in lucrative exits and multi-billion dollar mergers and
acquisitions. Meanwhile, investment management firm Invesco is expected to report a rise in
fourth quarter profit on Tuesday on higher management fees and strong inflows of capital. On
Friday, Franklin Templeton is expected to report a fall in first quarter profit as rising
compensation and interest expense weigh on investment management fees.

Payment card giant Visa is expected to post higher first-quarter profit on Thursday, as the firm
benefits from strong consumer spending during the crucial holiday season. Analysts and investors
are expected to focus on the company's outlook for travel demand, leisure spending, and
household budgets in 2025.  On the same day, Mastercard is expected to report a higher profit
when it posts its Q4 earnings. Investors will closely watch out for the company’s 2025 forecast.

Starbucks is expected to post a fall in first-quarter revenue on Tuesday, as the coffee giant
faces weak demand for its beverages in its key U.S. and China markets, Investors will look for
comments regarding the CEO Brian Niccol's overhaul plan, competition and remarks regarding the
recent strike by Starbucks union.

Major aerospace and defense manufacturers are reporting next week. RTX is expected to post a
rise in both fourth-quarter profit and revenue on Tuesday, aided by sustained demand for its
aftermarket services and defense systems. Investors will look for commentary on 2025 forecasts
amid the backdrop of the new administration. On the same day, Lockheed Martin is set to report
fourth-quarter results, with expectations of a marginally higher revenue and a fall in profit.
Investors will look for commentary on 2025 forecasts amid the backdrop of a new administration.
Separately, General Dynamics is set to report fourth-quarter 2024 earnings on Wednesday. The
defense company is expected to post a year-on-year fall in deliveries for aircrafts and
submarines parts as supply chains issues persist, while noting strength in its Combat Systems
segment numbers on sustained defense demand. Additionally, Northrop Grumman, on Thursday, is
expected to post a marginal rise in fourth-quarter profit and revenue. Investors will look for
2025 forecasts and commentary against the backdrop of the new administration. 

IBM’s fourth-quarter revenue is expected to rise, when it posts its results on Wednesday.
Analysts and investors are looking for indications of demand for its consulting segment and
traction for its AI-focused offerings.

On Friday, when AbbVie releases its fourth-quarter results, investor focus will be on the
performance of its newer immunology drugs as the company works to offset a decline in sales of
its once top-selling medicine Humira. On Thursday, drug distributor Cardinal Health is expected
to report its second-quarter results. Investor focus will be on the sales of its specialty
medicines and branded drugs. Additionally, life sciences company Danaher is expected to report
fourth-quarter results on Wednesday, before markets open. Investors are expected to look out for
its 2025 forecast and comments on demand for its diagnostics and bioprocessing businesses.

Health insurer Cigna is scheduled to report its fourth quarter results before markets open on
Thursday. The focus will be on the company's annual outlook and comments regarding medical costs
as well as its pharmacy benefit management unit.

Telcom service provider T-Mobile is likely to post a rise in revenue in the fourth quarter on
Wednesday, driven by demand for its high-speed internet plans. 
    
On Thursday, telecom and entertainment giant Comcast is expected to report 1.2% rise in total
revenue in the fourth quarter, thanks to strong performance at its studio and connectivity
units.

Marlboro-maker Altria is expected to post a rise in fourth-quarter revenue on Thursday, helped
by steady demand for its nicotine pouches and e-cigarettes. Investors will look out for comments
on demand, annual forecasts as well as impact of U.S. regulators proposing to cap the amount of
nicotine in cigarettes at non-addictive levels.
 
Apparel & footwear company VF Corp is expected to post a dip in third-quarter results on
Wednesday, as the company tries to turn around demand for its struggling apparel and footwear
offerings. Investors will look out for comments on holiday season sales, cost-saving efforts and
annual forecasts.

Insurance company Progressive Corp on Wednesday is expected to report a rise in its
fourth-quarter profit on strong insurance demand. American-Swiss insurer Chubb is expected to
report a decline in fourth-quarter profit on Tuesday, impacted by higher catastrophe losses that
overshadowed gains in investment income. On Thursday, Hartford Financial is expected to post a
lower fourth quarter profit, hurt by a decline in investment returns and unfavorable
underwriting.  On the same day, insurance broker Arthur J Gallagher is expected to report higher
fourth-quarter profit, thanks to busier activity and a jump in net investment income.

Colgate-Palmolive is expected to post a rise in fourth-quarter revenue on Friday, helped by
steady demand for its products including oral care and pet nutrition. Investors will look for
comments on pricing actions, demand, impact of increasing competition and annual forecasts.

Railroad operator Norfolk Southern is expected to report its fourth quarter earnings on
Wednesday. Analysts expect the company to report a year-over-year fall in revenue while
expecting a rise in per-share profit.

Cruise line Royal Caribbean is set to repost a rise in fourth-quarter revenue on Tuesday,
benefiting from still high interest for cruise vacations and strong onboard spending at spas and
restaurants as well as higher ticket prices. Investors will look out for the company’s outlook
for the new fiscal year, pricing initiatives, new cruise destinations and a rebound in demand
for cruises to the Mediterranean region.

Refiner Valero, on Thursday, is expected to report a dip in fourth-quarter profits from the same
period a year-ago. Investors will watch for any comments on its refineries in California, the
outlook for fuel demand and consumption, and any other updates to operations under the new Trump
administration.

Exchange operator Nasdaq is set to report its fourth-quarter results on Wednesday. The
transatlantic exchange operator is expected to report a rise in quarterly profit thanks to
stronger trading volumes.

Food distributor Sysco is expected to post a rise in second-quarter revenue on Tuesday buoyed by
demand for specialty seafood and fresh-cut meat products. Investors will look out for comments
on demand for U.S. restaurant industry, packaged prices and supply chain challenges.

Diversified financial firm Ameriprise Financial is expected to post a rise in fourth-quarter
profit on Wednesday, driven by robust fee income as a market rally boosted the value of its
clients' assets.

Fintech firm Broadridge Financial on Friday is expected to report a rise in its second-quarter
profit on resilient demand in its global technology business.  

On Tuesday, consumer lender Synchrony Financial is expected to report a rise in its
fourth-quarter profit, helped by lower loan loss provisions. 

On Friday, Church & Dwight is expected to post a rise in fourth-quarter revenue on strong demand
for its household products, including laundry, personal care, and hygiene. Investors will look
out for comments on pricing strategies, cost-saving efforts and forecast updates. 

International Paper is expected to post a rise in fourth-quarter revenue on Thursday, helped by
robust demand for its packaging materials. Investors will look out for comments on product
pricing, cost savings efforts and annual forecasts.

Flagstar Financial, formerly known as New York Community Bancorp, is expected to report a
smaller fourth-quarter profit on Thursday. Analysts will scrutinize its forecast for updates on
its plan to return to profitability. 

Bank of Canada is set to hold its monetary policy meeting on Wednesday and is likely to cut
rates by 25 basis points to 3% supported by consistent easing of prices, which has stayed at or
below the central bank’s target of 2% since August.

Data from StatsCan, due on Friday, is expected to show that Canada’s GDP contracted 0.1% in
November, following a 0.3% expansion in October.

On the Latin American economic calendar, Brazil’s central bank rate-setting committee is
expected to hike the Selic interest rate by 100 basis-points to 13.25% on Wednesday, as
inflation outlook worsens, and the Brazilian currency depreciation continues. Additionally, the
country’s IGP-M inflation index for January is due on Thursday and unemployment data for
December is expected on Friday. On Thursday, Mexico's fourth-quarter GDP figures will be on
investors’ radar. The economy likely expanded 1.1% in the previous quarter. On Wednesday,
jobless rate numbers for December are expected from the country’s national statistics agency. On
Friday, Central bank of Chile, at the conclusion of its policy meeting, is expected to hold its
benchmark interest rate at 5%. 
    

 (Compiled by Malini K; Edited by Sahal Muhammed)
 ((Malini.K@thomsonreuters.com;))