What to Watch in the Day Ahead - Thursday, January 30
29/01/2025 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) Apple is expected to report slower revenue growth in the first quarter due to the slow rollout of minimal AI features, curbing enthusiasm for its iPhone line-up. On the U.S. economic front, the Commerce Department's Bureau of Economic Analysis' advance estimate of the gross domestic product is expected to show that the economy grew at a pace of 2.6% in the fourth quarter, compared with a 3.1% expansion in the third quarter. Separately, the Labor Department is expected to report that initial claims for state unemployment benefits likely fell by 3,000 to 220,000 for the week ending Jan. 25. The number of people receiving benefits after an initial week of aid is forecast to have decreased to a seasonally adjusted 1.890 million during the week ending Jan. 18 from 1.899 million in the prior week. Meanwhile, the National Association of Realtors is due to release pending home sales figures that likely remained unchanged in December, after rising 2.2% in November. Intel is expected to report a drop in fourth-quarter revenue. Investors will focus on the company's strategy amid an ongoing CEO search. Analysts expect parcel delivery giant United Parcel Service to report a year-over-year rise in quarterly revenue and profit when it reports its fourth-quarter results. Investors will remain keen on comments around pricing and cost discipline. Caterpillar is set to report its fourth-quarter results, with expectations of lower profit and revenue. Investors will closely monitor the company's commentary on demand trends and inventory restocking. Payment card giant Visa is expected to post higher first-quarter profit, 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. Meanwhile, Mastercard is expected to report a higher profit when it posts its fourth-quarter earnings. Investors will closely watch out for the card giant's 2025 forecast. Alternative asset manager Blackstone is expected to report a surge in profit fueled by a jump in fee-related earnings when it reports its fourth-quarter 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. Southwest Airlines is set to report its fourth-quarter earnings, with expectations of higher profit and revenue. Investors will be looking for any commentary on demand trends and the pricing environment. Health insurer Cigna is scheduled to report its fourth-quarter results. The focus will be on the company's annual outlook and comments regarding medical costs as well as its pharmacy benefit management unit. Telecom and entertainment giant Comcast is expected to report a rise in total revenue in the fourth quarter, thanks to strong performance at its studio and connectivity units. Northrop Grumman is set to report its fourth-quarter results with expectations of a marginal rise in profit and revenue. Investors will look for 2025 forecasts and commentary against the backdrop of the new administration. Dow is expected to report a fall in fourth-quarter profit, hurt by lower demand in Europe. Investors and analysts will look out for comments on full-year expectations. Oilfield Services firm Baker Hughes is expected to report fourth-quarter results. Investors will be on the lookout for any commentary and impact of pricing and production levels in North America. Marlboro-maker Altria is expected to post a rise in fourth-quarter revenue, helped by steady demand for its nicotine pouches and e-cigarettes. Investors will look out for comments on demand, annual forecasts as well as the impact of U.S. regulators proposing to cap the amount of nicotine in cigarettes at non-addictive levels. Drug distributor Cardinal Health is expected to give its second-quarter results. Investor focus will be on the performance of its costly specialty medicines and branded drugs. Thermo Fisher is expected to report fourth-quarter results. Investors are expected to look out for the company's 2025 forecast and comments on demand for its tools and services used in drug development. Flagstar Financial, formerly known as New York Community Bancorp, is expected to report a smaller fourth-quarter profit. Analysts will scrutinize its forecast for updates on its plan to return to profitability. Mobileye is expected to report a sharp fall in its fourth-quarter revenue as the self-driving tech firm grapples with slowing demand for its products in key markets such as China. Refiner Valero 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. KLA Corp is expected to report a rise in revenue in the second quarter on strong demand for chipmaking equipment as customers are investing heavily in AI chips. Insurer Hartford Financial is expected to post a lower fourth-quarter profit, hurt by a decline in investment returns and unfavorable underwriting. Meanwhile, insurance broker Arthur J Gallagher is expected to report higher fourth-quarter profit, thanks to busier activity and a jump in net investment income. International Paper is expected to post a rise in fourth-quarter revenue helped by robust demand for its packaging materials. Investors will look out for comments on product pricing, cost savings efforts and annual forecasts. Deckers Outdoor is expected to post a jump in its third-quarter revenue as the company benefits from strong demand for its brands such as lifestyle footwear label UGG and running shoes from Hoka. Investors will watch out for the innovation pipeline for the rest of the year, and any comments on the impact from import tariffs on China. Farming supplies retailer Tractor Supply is expected to post a rise in fourth-quarter revenue helped by demand for gardening products and other home goods. Investors will look out for any changes to the annual forecast and forward-looking comments on discretionary spending. Rogers Communications is expected to show a marginal rise in its fourth-quarter revenue amid a price war going on among the biggest telecom companies in Canada and a slowdown of immigrants in the country. Latin American investors will look out for Brazil's IGP-M inflation index for January. Inflation is forecast to rise 0.2%, following a 0.94% increase in the prior month. Separately, Mexico's statistics agency INEGI is due to release the country's flash GDP for the fourth quarter. The economy is likely to have contracted 0.2% in the fourth quarter after expanding 1.1% in the previous quarter. On an annual basis, the economy is likely to grow at a 1.2% rate in the fourth quarter. (Compiled by Lactus Fernandes in Bengaluru; Edited by Vijay Kishore) ((Lactus.Fernandes@thomsonreuters.com;))