What to Watch in the Week Ahead and on Monday, February 3

Ball

31/01/2025 19:41

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ON MONDAY
    
On the U.S. economic front, the Institute for Supply Management is expected to report that its
manufacturing PMI likely edged up to 49.8 in January from 49.3 in the prior month. Also, S&P
Global manufacturing PMI data for January is due. 

Tyson Foods is expected to report a slight increase in first-quarter revenue from demand
improvements in its chicken and beef businesses. Investors will look out for comments on
forecasts, about Trump tariffs affecting trade or immigration policy affecting the workforce,
cattle supply, the impact of recent bird flu, and cost savings measures including plant
closures.
 
Clorox is expected to post a fall in second-quarter revenue as price hikes temper, and the
company goes up against tougher year-ago compares. Investors will watch out for comments on
volume growth and expectations for the rest of the year.
    
St. Louis Fed President Alberto Musalem is due to give welcome remarks before the 2025 Homer
Jones Memorial Lecture in Missouri. (1230 ET/1730 GMT) Meanwhile, Atlanta Fed President Raphael
Bostic is set to speak on the economic outlook in a moderated conversation hosted by the Rotary
Club of Atlanta in Atlanta. (1830 ET/2330 GMT)
    
Google is expected to ask a U.S. appeals court at a hearing to reverse a judge's order requiring
the Alphabet unit to redesign its app store Play, as the tech giant prepares for the next round
in an antitrust battle with "Fortnite" maker Epic Games.
    
AT&T is set to urge the New Orleans-based 5th U.S. Circuit Court of Appeals to overturn a $57
million penalty the Federal Communications Commission imposed on the U.S. wireless carrier for
illegally sharing access to customers' location information. 

IDEXX Laboratories is set to report its fourth-quarter results. The focus will be on 2025
outlook and comments on vet visit trends which has a challenge for the animal health diagnostic
equipment maker.
 
A judge in Missouri is scheduled to hold a hearing on a bid by pharmacy benefit managers —
UnitedHealth Group's Optum, CVS Health's CVS Caremark and Cigna's Express Scripts — to block a
Federal Trade Commission lawsuit accusing them of anticompetitive practices that jacked up the
price of insulin. 
    
Canada's S&P Global Manufacturing PMI for January will be on investors' radar. 
    
REST OF THE WEEK
    
A raft of U.S. economic data is scheduled for release in the week. On Friday, the Labor
Department's employment report is expected to show that nonfarm payrolls in January increased by
170,000 jobs after growth of 256,000 jobs in December. Meanwhile, the unemployment rate is
expected to come in 4.1% in January, similar to prior month's reading. Private payrolls probably
rose by 140,000 jobs, compared to 223,000 jobs in the prior month. Additionally, average
earnings likely inched up 0.3% in January, while, on annual basis, average earnings is forecast
to rise 3.8%. On Tuesday, Job Openings and Labor Turnover Survey will also be on investors
radar. On Wednesday, the ADP national employment report is expected to show that private
employment likely grew by 150,000 jobs in January, after advancing by 122,000 jobs in the month
before. Furthermore, on Thursday, initial jobless claims for the week ending Feb. 1 are forecast
to rise to 215,000 up from 207,000 the previous week. On Wednesday, the Institute for Supply
Management is expected to report that the non-manufacturing PMI likely inched up to 54.2 in
January from 54.1 in the prior month. Additionally, on the same day S&P Global composite and
services final PMI data for January are also due.  On Tuesday, the Commerce Department is
expected to report that factory orders likely declined 0.8% in December after falling 0.4% in
November. The department, on Wednesday, is also likely to post that the country's international
trade deficit widened to $96.5 billion in December from $78.2 billion in November. 
  
Google-parent Alphabet is expected to report a rise in its fourth-quarter revenue on Tuesday,
aided by strong digital advertising demand and growth in its cloud unit. Investors will be
watching for the company's outlook, trends on Google's AI initiatives including AI Overviews and
Gemini, as well as its capital spending plans.
    
E-commerce giant Amazon is expected to report a jump in its fourth-quarter revenue on Thursday,
powered by a holiday shopping season boost in its retail business and steady growth at its cloud
computing unit. The company's forecasts, capital spending plans, and cloud growth expectations
will be on top of investors' minds.
    
A host of U.S. Federal Reserve policymakers are due to speak at different events. Fed Vice Chair
Philip Jefferson is due to speak on the U.S. economic outlook and monetary policy before the
Lafayette College Economics Department Special Lecture in Easton on Tuesday. Additionally,
Jefferson is slated to give a lecture, "Do Non-Inflationary Economic Expansions Promote Shared
Prosperity?" at Swarthmore College in Pennsylvania on Wednesday. On the same day, Fed Board
Governor Michelle Bowman is due to give brief economic update and bank regulation remarks before
the 2025 Kansas Bankers Association Harold A. Stones Government Relations Conference in Topeka.
Bowman is also due to give brief economic update and bank regulation remarks before the 2025
Wisconsin Bankers Association Bank Executives Conference in Milwaukee on Friday. Meanwhile, Fed
Board Governor Christopher Waller is set to discuss "Payments" before the "Navigating the Future
of Payments with Christopher Waller" event hosted by the Atlantic Council in Washington on
Thursday. Additionally, Fed Board Governor Adriana Kugler, on Friday, is expected to speak on
"Entrepreneurship and Aggregate Productivity" before the 2025 Miami Economic Forum in Miami.
Richmond Fed President Thomas Barkin is set to participate in fireside chat before the
Conference Board "2025: A Year in Preview" Conference in New York on Wednesday. On the same day,
Chicago Fed President Austan Goolsbee is expected to speak on economic perspectives before
hybrid 31st Annual Automotive Insights Symposium in Chicago. Meanwhile, Bostic is slated to
speak on housing in a moderated conversation before a National Housing Crisis Task Force Meeting
in Atlanta on Tuesday. On the same day, San Francisco Fed President Mary Daly, is expected to
participate in hybrid discussion, "The Economy 2025: the Impacts of Tariffs, Tax Cuts and Trump"
before the Commonwealth Club World Affairs of California in San Francisco. 
Drugmaker Pfizer is expected to report fourth-quarter earnings on Tuesday, a little over a month
after it forecast 2025 profit roughly in line with Wall Street expectations. Performance of its
COVID-19 vaccine, antiviral drug Paxlovid, and newer cancer drugs will be closely watched,
alongside any updates on its experimental obesity drug. Comments around any engagement with
activist hedge fund Starboard Value will also be of interest. 
    
Eli Lilly is set to report fourth-quarter earnings on Thursday, weeks after it forecast
quarterly sales of its popular weight-loss treatment Zepbound below Wall Street estimates.
Investors will look for comments around supply and inventory of Zepbound and diabetes drug
Mounjaro at wholesalers, as well as any steps that Lilly is taking to stimulate demand. Focus
will also be on any updates from its next-generation obesity drugs. Regeneron is expected to
report its fourth-quarter results on Tuesday. Investor focus will be on the drugmaker's 2025
outlook and performance of the its eczema drug and eye drug, which is facing competition from
biosimilars.
    
PepsiCo is expected to post a slight rise in fourth-quarter revenue on Tuesday, benefiting from
still steady demand for sodas internationally but taking a hit from lackluster sales in its
snacking department in the US. Investors will look out for comments on promotions, cost-saving
initiatives and outlook for the new fiscal year.
    
Analysts expect Uber to report a rise in fourth-quarter revenue on Wednesday, helped by demand
for ride-hailing services during the holidays. Investors expect the company to comment on its
robotaxi partnerships, offerings and expansion to compete with rivals in the sector.
    
KKR is expected to post a jump in it's fourth-quarter profit when the alternative asset manager
reports its earnings on Tuesday, driven by higher fee related earnings.
    
Arm Holdings is expected to post a increase in its third-quarter revenue, helped by companies
designing new chips due to a rapid increase in artificial intelligence applications.
    
Mondelez is expected to announce an increase in fourth-quarter revenue on Tuesday, on demand for
its snacks and confectionery. Investors will look out for comments on forecasts, impact, and
efforts to offset cocoa price inflation, including cost-saving measures and pricing strategies.
Chocolate maker Hershey is expected to post a drop in fourth-quarter sales on Thursday, hurt by
soft demand and rising cocoa prices. Investors will look out for comments on commodity costs,
consumer demand for chocolates and salty snacks as well as annual forecast.
    
PayPal is expected to report a higher fourth-quarter revenue on Tuesday, thanks to strong
holiday season spending at the digital payments giant. Analysts and investors will be watching
for the company's outlook on spending growth in 2025 and its path to expanding operating
margins. Payments firm Fiserv is expected to post a rise in fourth-quarter profit on Wednesday,
as spending trends remained robust.
 
The crude producer ConocoPhillips is expected to report lower fourth-quarter profit, on
Thursday, compared to the same quarter a year ago. Investors will watch for any commentary on
global oil supply and demand and Trump's tariff plans. Meanwhile, Marathon Petroleum is expected
to report a lower fourth-quarter profit on Tuesday. Investors will look for comments on Trump's
tariff plans, first quarter updates, and renewable fuels.
    
Electronic Arts is expected to report a slight fall in third-quarter bookings after the company
warned of weaker performance of its popular EA FC franchise and worse-than-expected sales for
its new Dragon Age title. Roblox is expected to report a jump in fourth-quarter revenue on
Thursday as the videogame platform benefits from healthy in-game spending on its games during
the holiday season.
    
Toymaker Mattel is expected to post fourth-quarter sales flat to last year on Tuesday, owing to
strained US consumer spending backdrop and fading benefits of Barbie sales last year. Investors
will look out for comments on tariff impacts, demand recovery and margin progress.
    
Yum Brands is expected to announce a rise in fourth-quarter revenue on Thursday, on demand
recovery for restaurants in the U.S. Investors will look out for comments on forecasts,
marketing and promotional activities, and cost-saving measures.
    
Chipotle Mexican Grill is expected to post a rise in its fourth-quarter revenue on Tuesday,
helped by strong demand for its buritto bowls and wraps. Investors will watch out for CEO Scott
Boatwright's plans for price hikes for the rest of the year, as well as comments on input costs.
    
Global grains merchant Archer-Daniels-Midland is expected to report its fourth-quarter results
on Tuesday. The results will be closely watched by investors as the company continues to grapple
with accounting irregularities which forced it to correct six years of financial data.
Meanwhile, grain trader and processor Bunge is expected to post a fall in its fourth-quarter
profit on Wednesday. Investors will be on the look out for comments on its $34 billion
acquisition of Viterra, which still needs to clear some regulatory hurdles.
    
Private equity giant Apollo Global Management is expected to post its fourth-quarter results on
Tuesday. Analysts expect the company to report higher fee-related earnings, thanks to a better
environment for dealmaking.  
 
Snap is expected to report higher fourth-quarter revenue on Tuesday, driven by strong digital
advertising spend on its platform during the crucial holiday shopping season when brands spend
heavily to promote their products and services. Investors will be looking for commentary on
uncertainty over a potential U.S. TikTok ban, benefits and risks of its app redesign, dubbed
"Simple Snapchat," and any impact from stronger U.S. dollar on the current quarter expectations.
On the same day, Spotify is expected to report higher fourth-quarter revenue, helped by price
increases of its premium plans and growing subscriber base. Investors will be looking for
commentary on how the Swedish audio streaming company's artificial intelligence initiatives are
helping it to boost its services. Image-sharing platform Pinterest is expected to report higher
fourth-quarter revenue on Thursday, driven by strong digital advertising spend on its platform
during the crucial holiday shopping season when brands spend heavily to promote their products
and services. Analysts and investors will also eye on Pinterest's commentary about advertisers
from food and beverage sector as they were grappling with macroeconomic challenges and adoption
of its Performance+ artificial intelligence driven advertising tools.
    
Tobacco company Philip Morris International is expected to post a rise in fourth-quarter sales
on Thursday, driven by strong demand for nicotine pouches and other smoking alternatives.
Investors will look out for 2025 forecast and comments on demand outlook.
Broadcasting company Fox Corp is expected to report a rise in its second-quarter revenue and
profit on Tuesday, helped by an uptake in political advertising spending in the run-up to the
U.S. presidential elections and incremental advertising earnings from Tubi, its ad-supported
streaming service. On Wednesday, News Corp is expected to report a rise in second-quarter
profit, despite declining revenue, as the company's efforts to realign its focus on its core
publishing business — including the sale of its Australian cable-TV unit Foxtel to DAZN — is
helping the company to cut back on costs.
 
Packaged food company Kellanova is expected to post a rise in fourth-quarter sales on Thursday,
driven by steady demand for its salty snacks offerings. Investors will look out for comments on
progress in its merger deal with Mars, and demand forecast.
    
Ralph Lauren is expected to post a rise in third-quarter revenue on Thursday, driven by a strong
demand for its pricey cashmere sweaters and shirts during the holiday season. Investors will
look out for comments regarding an increase in prices, business in China and an update to its
fiscal year outlook.
    
Bitcoin buyer MicroStrategy is expected to post a fourth consecutive quarterly loss when it
reports its Q4 earnings next week.
 
Reuters NEXT Newsmaker- International Monetary Fund's Kristalina Georgieva is set to speak with
Reuters White House Correspondent Andrea Shalal about the challenges facing the global economy
at a time when heightened trade tensions between the United States – the IMF's largest
shareholder - and other countries threaten to hamper already lacklustre global growth prospects.
The IMF has warned countries against taking unilateral trade protection measures such as the
widespread tariffs on imports threatened by President Trump, saying such policies could trigger
retaliation and "leave every country worse off".
 
Bristol Myers Squibb is set to report its fourth-quarter results on Thursday. The focus will be
on its annual outlook and updates on its $1.5 billion cost savings program.
 
Health insurer Centene is expected to report fourth-quarter results on Tuesday. Investors are
expected to look out for any changes to its 2025 profit forecast and any commentary on the
company's medical costs. Allstate is expected to report a higher profit next week when it
reports its fourth-quarter earnings on Wednesday. Investors will watch out for updates from the
company on the impact from the LA fires.
 
Edwards Lifesciences is expected to give its fourth-quarter results on Tuesday. Investor focus
will be on the performance of its artificial heart valves.
 
Air Products and Chemicals is expected to report its first-quarter results on Thursday.
Investors will closely watch the results as it will be APD's first earnings since company's
shareholders handed victory to activist investor Mantle Ridge by unseating the CEO from its
board.
 
Intercontinental Exchange is expected to post a rise in fourth-quarter profit on Thursday,
helped by strong trading volumes. Cboe Global Markets is set to its fourth-quarter results on
Friday. Analysts expect a rise in profit.
 
Regency Centers is expected to post a rise in its fourth-quarter revenue as the company benefits
from strong leasing demands at its grocery-anchored shopping centers.
 
Beer can maker Ball Corp is expected to post a drop in fourth-quarter revenue on Tuesday, hurt
by slowing demand for alcoholic drinks. Investors will look out for progress on cost-cutting
measures, demand outlook and any potential impact from tariff changes.
 
Prudential Financial is set to report its fourth-quarter results on Tuesday. Analysts expect a
rise in profit.
 
Willis Towers Watson is set to report its fourth-quarter results on Tuesday. Analysts expect a
rise in profit.
 
Commercial real estate investment trust Simon Property is expected to post a jump in
fourth-quarter revenue on Tuesday helped by leasing demand for its shopping centers real estate
space. Investors will watch for annual forecast.
 
Cable providers Comcast and Charter Communications are set to defend at trial against
allegations that their software infringes patents owned by software developer Touchstream
related to streaming videos from one screen to another. Touchstream won a $338.7 million jury
verdict against Google in a related case last year over Google's Chromecast technology.
    
Kimco Realty is expected to post a rise in fourth-quarter revenue on Friday, helped by strong
demand for rental spaces. Investors will look out for 2025 forecast and comments on competition
in commercial space leasing.
 
Sam Altman, co-founder and CEO of OpenAI, is slated to take part in a panel at the Technical
University Berlin on artificial intelligence.
 
Canada's Bombardier is expected to report higher fourth-quarter deliveries on Thursday as the
business jet maker handed more planes to customers.
    
On Wednesday, Canada's trade balance data for December is likely to show a surplus of C$340
million, following a deficit of C$323 million in November. On Thursday, the country's Ivey
Purchasing Managers Index for January is also due. On Friday, a StatsCan report is expected to
show that the Canadian economy likely added 25,000 jobs in January. Meanwhile, the unemployment
rate probably inched up 6.8% in January from 6.7% in December.
 
In Latin American region, on Wednesday, Brazil's statistics agency IBGE is expected to report
industrial production data for December, along with S&P Global composite and services final PMI
data for January. Mexico's central bank will hold its first monetary policy meeting of 2025 on
Thursday. Investors will also look out for Mexico's S&P Global manufacturing PMI data for
January on Tuesday. Mexico's January inflation figures are set for release on Friday.
Separately, the country's statistics agency is expected to report gross fixed
investment on Wednesday.  


 (Compiled by Lactus Fernandes in Bengaluru; Edited by Shilpi Majumdar)
 ((Lactus.Fernandes@thomsonreuters.com;))