What to Watch in the Week Ahead and on Tuesday, January 21

Amphenol

17/01/2025 19:30

(The Day Ahead is an email and PDF publication that includes the day's major stories and
events, analyses and other features. To receive The Day Ahead, Eikon users can register at
 DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT)
    
(U.S. markets are closed on Monday, January 20 on account of Martin Luther King, Jr. Day)

ON TUESDAY
Netflix will be among the big names on investor radar when it reports fourth-quarter earnings
after markets close. The streaming giant likely added more than 9 million subscribers in the
holiday quarter, driven by its bet on live sports to attract both younger viewers and
advertising dollars.

Financial services company Charles Schwab is expected to report a rise in fourth-quarter profit,
driven by higher asset management fees.

Diversified industrial firm 3M Co is scheduled to release its fourth-quarter earnings before
markets open. Investors will be looking for comments on industry demand and progress on its
restructuring efforts.

Among banks, Capital One is expected to report a higher profit in the fourth quarter as the
consumer lender earns more off charging customers interest. Analyst and investor focus will be
on the company's timeline for closing its over $35 billion acquisition of Discover
Financial. Fifth Third Bancorp is expected to report a drop in fourth-quarter profit as the bank
sets aside a large provision to accommodate loans that can sour against a tough economy.
Separately, Zions Bancorporation is expected to report a marginal decline in fourth-quarter
profit as bigger rainy-day funds offset gains in interest income. 

Homebuilder DR Horton is set to release its first-quarter earnings before markets open.
Investors will be looking for comments on demand and mortgage rate expectations for 2025.

United Airlines will report its fourth-quarter earnings after markets close. The airline is
expected to report a rise in profit due to strong travel demand and improved pricing. 
    
For Canada, a StatsCan report is expected to show Consumer Price Index (CPI) falling 0.4% in
December, after remaining unchanged in the previous month. Meanwhile, the annual CPI inflation
rate might have eased to 1.8% last month, following a 1.9% rise in November.

Mexico's retail sales numbers for November are slated for release. Sales had fallen 0.3% in
October.

REST OF THE WEEK
Procter & Gamble is expected to post a slight rise in second-quarter revenue on Wednesday,
driven by resilient demand for products like Tide detergent as well as Pantene shampoo in the US
and improving demand in China. Investors will look out for the company's comments on sentiment
regarding beauty product SK-II, the impact on supply from shut down of transportation management
service provider Blue Yonder and foreign currency headwinds.

On Wednesday, Johnson & Johnson is set to report fourth-quarter results before markets open.
Investors will closely watch for the drug & device maker's 2025 profit and revenue forecast, as
well as details on its recent $14.6 billion acquisition of Intra-Cellular Therapeutics. Focus
will also be on the progress from integrating companies in the past year, such as heart device
maker Shockwave. On the same day, Abbott Laboratories is expected to report its fourth-quarter
results. Investor focus will be on its 2025 forecasts and the performance of its heart devices
and continuous glucose monitors.

American Airlines is reporting its fourth-quarter earnings before markets open on Thursday. The
airline is expected to report a higher profit on the back of returning corporate customers and
improved pricing.

On the U.S. economic front, S&P Global's flash Purchasing Managers Index readings, due on
Friday, could provide insight into manufacturing and business activity in January. On the same
day, a University of Michigan survey is likely to show that consumer sentiment is expected to
remain unchanged at 73.2 in January. On Thursday, the Labor Department will report initial
jobless claims numbers, which might have risen by 1,000 to 218,000 for the week ending Jan. 18.
Continued jobless claims for the week ended Jan. 11 is also expected. On Friday, the National
Association of Realtors is set to report existing home sales, which might have increased to a
seasonally adjusted annual rate of 4.20 million units in December from 4.15 million units in the
previous month.

American Express is expected to report a higher profit on Friday when the credit card lender
reports its fourth-quarter earnings.

GE Aerospace is slated to release its fourth-quarter earnings before markets open on Thursday.
Investors will be looking for comments on supply chain and industry demand. On Wednesday,
Textron will report fourth-quarter and fiscal 2024 results. The Cessna jet maker expects to see
continued impact from the September Wichita strike on quarterly profits. Analysts are also
eyeing the company's aircraft deliveries as supply chains issues persist, along with its
industrial segment volumes on weakening demand for its specialized vehicles.

Pipeline operator Kinder Morgan could post a rise in fourth-quarter profit after the markets
close on Wednesday. Investors will look out for the management's commentary on the outlook for
the year ahead. On the same day, oilfield service company Halliburton is set to report a drop in
profits from the year-ago period, when it releases its fourth-quarter earnings. Investors will
watch for any comments on the outlook of the U.S. and international markets in 2025. 
    
Analog chipmaker Texas Instruments is likely to report a fall in fourth-quarter revenue on
Thursday, as the analog chipmaker grapples with continued weakness in its industrial segment,
while the automotive end market undergoes a rebound in demand.

Verizon Communications is scheduled to release fourth-quarter results on Friday. It is expected
to report a rise in wireless subscriber additions in the holiday quarter, thanks to demand for
its discounted customizable offerings.

Health insurer Elevance Health is due to report its fourth-quarter results on Thursday, before
markets open. Investors are expected to look out for the company's 2025 outlook as well as
commentary on costs tied to Medicaid plans.  

Hospital operator HCA Healthcare is expected to report fourth-quarter results before markets
open on Friday. Investors are expected to look out for its 2025 profit outlook.

Miner Freeport-McMoRan is set to report a fall in fourth-quarter profit on Thursday, hurt by
planned maintenance activities. Investors and analysts will look out for comments on full-year
expectations, contract prices and macro-outlook.

Electronics equipment maker Amphenol is slated to post a sharp rise in fourth-quarter revenue on
Wednesday, as it benefits from robust demand for its products used in IT, communications and
defense sectors.

Insurance provider Travelers Companies is expected to report a higher fourth-quarter revenue on
Wednesday, helped by a rise in net premiums. Analyst and investor focus will be on the insurer's
catastrophe losses which are expected to weigh on profits after a destructive hurricane season.
Executive commentary on the LA wildfires and potential losses emerging from them are also in
focus.
    
Discover Financial is expected to report a surge in fourth-quarter profit on Wednesday, helped
by higher interest income and fewer rainy-day buffers for souring loans. Investors are expected
to focus on credit quality and outlook for loan growth. On Thursday, Northern Trust is expected
to see a jump in profit in the fourth quarter helped by gains in income earned off charging
customers interest and lower rainy-day funds. 

McCormick & Co is expected to post a rise in fourth-quarter revenue on Thursday aided by demand
for their spices and flavorings as more customers aim to eat homemade food. Investors will look
out for comments on efforts to improve sales and cut costs, annual forecast updates and report
that company plans to buy Sauer Brands.  

On Thursday, Canada's statistics agency is slated to report November retail sales, which could
have increased at a slower pace of 0.1%, after rising 0.6% in the previous month. Last month’s
producer prices data is also expected from the agency on Wednesday. Producer prices had ticked
up 0.6% in November.

For Latin America's largest economy Brazil, data to be released on Friday could offer insight
into inflation in the month to mid-January. Mid-December inflation slowed to 0.34%. For Mexico,
on Friday, IGAE economic activity figures for November is expected, which had shrunk 0.7% in
October. Meanwhile, the country's inflation figures for the first half of January is due on
Thursday. Separately, Argentina's economic activity data for November is scheduled for release
on the same day.

 (Compiled by Malini K; Edited by Vijay Kishore)
 ((Malini.K@thomsonreuters.com;))