What to Watch in the Day Ahead - Tuesday, April 25

Banco Santander Brasil SA

24/04/2023 19:30

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Google-parent Alphabet Inc is expected to report a 1.3% rise in its first-quarter revenue,
boosted by growth in its cloud segment. Analysts and investors are looking for guidance and
commentary on demand for advertising and the slowing growth rate of Google Cloud.
    
Microsoft Corp is expected to report a rise in its third-quarter revenue, driven by a boost from
AI infusion across its cloud and Office 365 products. 

A raft of data can be expected from the U.S. economic front, the Conference Board is scheduled
to report its Consumer Confidence Index likely remained unchanged at 104.0 in April from March.
The Commerce Department is expected to report new single-family home sales slipped to a
seasonally adjusted annual rate of 630,000 units in March, from 640,000 units in February. The
S&P CoreLogic Case-Shiller National Home Price Index dipped 0.4% in February and likely remained
flat year-on-year in February, after a 2.5% rise in the month before. 

McDonald's Corp is likely to post a jump in first-quarter same-store sales as the burger chain
continued to draw in more customers with its relatively cheaper meal offerings even as it raised
prices. Investors will be focused on the company's comments on its margins, effect of pricing on
customers and signs of trade-down. 

PepsiCo Inc is expected post a rise in first-quarter revenue, helped by higher prices and
resilient demand for its sodas and snacks. Investors will look for comments on higher costs,
price hikes, strong dollar and a shift in consumer demand due to rising inflation.

General Motors Co is scheduled to report its first-quarter financial results. The company
recently said it would set aside $1.5 billion to fund white-collar staff buyouts and was driving
to cut $2 billion in costs. The company faces tough contract talks this fall with the union
representing U.S. manufacturing workers. 
        
United Parcel Service Inc is expected to report a fall in first-quarter profit as softening
e-commerce demand on the back of an uncertain economy weigh on the bellwether global
transportation industry.

Verizon Communications Inc is likely to report its first-quarter results. Analysts do not expect
Verizon's first-quarter revenue to grow, as credit-stretched customers are expected to shift to
cheaper offerings in a murky economic environment. Investors are looking for guidance on
subscriber behavior and how it is looking to avoid churn in a competitive environment.

Texas Instruments Inc is expected to report a fall in first-quarter revenue, as customers orders
declined in the wake of a chip supply glut. 
   
Visa Inc is estimated to report a jump in second-quarter profit, as the reopening of China helps
boost the card issuer's spending volumes. 

Dow Inc is expected to report lower first-quarter income as the chemical giant navigates cost
inflation and decreased demand for its products. Investors will look for commentary around
China's recovery and demand outlook.
    
3M Co is expected to report a fall in first-quarter profit, as the U.S. industrial conglomerate
struggled with slowing demand for consumer electronics and slower-than-expected recovery in
China.
    
Multinational grains trader Archer-Daniels-Midland Co is expected to report first-quarter
results amid an ongoing war in Ukraine that has disrupted global trade flows and slumping corn
exports from the United States, home to the bulk of the company's facilities. Strong oilseed
processing margins and rising South American crop supplies amid a record Brazilian harvest were
seen underpinning ADM businesses.
    
Chipotle Mexican Grill's first-quarter revenue is expected to rise, benefiting from stable
demand from affluent consumers and higher menu prices. Investors will be watching for updates on
impact from inflation, traffic trends, staffing, margin recovery and any forecast that the
company provides. 
    
Raytheon Technologies Corp is expected to report a rise in its first-quarter revenue, but a
decline in net income.

Biogen Inc is scheduled to report first-quarter earnings before market opens. Investors and
analysts will focus on comments about the launch and uptake of its recently-approved Alzheimer's
drug Leqembi and the company's growth strategy under new CEO Christopher Viehbacher. Separately,
the U.S. Food and Drug Administration is also scheduled to decide on whether to allow the use of
Biogen's experimental drug, tofersen, for treating an inherited form of amyotrophic lateral
sclerosis (ALS).

Donald Trump is expected to go on trial in Manhattan federal court in former Elle magazine
columnist E. Jean Carroll's civil lawsuit seeking damages for alleged defamation and battery
after he denied raping her in the mid-1990s. Carroll sued over Trump's October 2022 social media
post where he called the rape claim a hoax, lie, con job and scam. She brought the battery claim
under New York's Adult Survivors Act.
    
Halliburton Co is expected to report higher first-quarter profit, as elevated crude prices and
tight supplies are fueling demand for oilfield services. Investors will focus on demand and
pricing outlook and commentary on spending from oil and gas producers.
 
U.S. Homebuilder Pulte Group Inc is expected to report a rise in first-quarter revenue as it is
expected to benefit from higher property prices amid tight supply of homes.
    
JetBlue Airways Corp is also expected to post a smaller first-quarter loss, helped by a
resilient demand for travel, allowing the carrier to charge higher airfare. 
    
Centene Corp is expected to report its first-quarter earnings before markets open. Investors are
likely to look at the health insurer's 2023 profit outlook, medical cost trends and commentary
over 2024 Medicare Advantage business as well as updates on next year's profit targets. 
    
Kleenex parent Kimberly-Clark Corp is expected to report a fall in first-quarter sales, as price
hikes lead to slowing demand for its products and a trade-down by inflation-weary consumers.
Investors will also watch out for the management's comments on annual outlook, impact of freight
and input costs as well as a recovery in Chinese market.
       
Danaher Corp is expected to report its first-quarter earnings. Investors would look at any
comments on full-year forecast and COVID-test kit sales as cases of infection have declined.

Top executives from the world's largest asset managers, including BlackRock, PIMCO, Capital
Group, are scheduled to speak at a Morningstar Investment conference in Chicago running from
April 25 to April 27.

Laboratory Corp of America Holdings is expected to report first-quarter earnings before markets
open. Investors will focus on the company's strategy to cope with declining COVID-19 testing
sales and performance in diagnostics business and any updates to the planned spin-off of its
clinical development unit. 

PACCAR Inc is expected to post a rise in first-quarter profit as demand for its new truck models
and aftermarket parts segment remained strong, aided by customers looking to replace their
fleets.

Brazil's retail sales data is due for release. Mexico's national statistics agency INEGI is
likely to report the country's economic activity measured by the IGAE index.

Banco Santander Brasil SA is likely to report its first-quarter results. Analysts polled by
Reuters forecast a net profit of 1.83 billion reais.

 (Compiled by Sandhra Mariam Sam in Bengaluru; Edited by Shilpi Majumdar)
 ((SandhraMariam.Sam@thomsonreuters.com;))