What to Watch in the Day Ahead and on Monday, Aug 7

Canadian Tire

04/08/2023 19:32

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On Monday
Federal Reserve Bank of Atlanta President Raphael Bostic is scheduled to give welcoming and
closing remarks; and (virtually) Federal Reserve Board Governor Michelle Bowman is expected to
give opening remarks before a FedListens event, "Transitioning to the Post-Pandemic Economy".
(0830/1230)

Tyson Foods is expected to post a rise in third-quarter revenue, benefiting from a steady demand
for its meat products despite inflation pinching household budgets. Investors will look for
comments on demand trends, margin recovery, impact from inflation, cost reduction initiatives
and any forecast the company provides.
    
Luxury electric maker Lucid Group Inc is expected to a post wider quarterly loss in the
April-June period as it increases production. Investors are looking forward to commentary on
demand and how it plans to ramp up production.

Paramount Global is expected to post a fall in second-quarter revenue as advertisers cut back on
spending in an uncertain economy. The company is scheduled to report results on Monday, after
markets close.

Palantir Technologies is expected to report a rise in quarterly revenue, driven by a boost from
its AI platform for governments and enterprises.

JPMorgan Chase and the U.S. Virgin Islands are expected to respond to each other's requests for
partial summary judgment in the territory's $190 million lawsuit accusing the largest U.S. bank
of turning a blind eye to Jeffrey Epstein's sexual abuse of young women and girls because it
valued the disgraced financier as a client. The filings are expected in Manhattan federal court.

International Flavors & Fragrances is expected to post a fall in second-quarter revenue as
demand falls for its food and pharmaceuticals solutions. Investors will watch out for comments
on sales across its segments such as health & biosciences and scent and pharma solutions, and
pressures from input costs.

Viatris Inc is set to report its second-quarter results before markets open. Investors will
focus on the company's quarterly results as well as full-year forecast at a time when the
drugmaker is streamlining its business.

Henry Schein is set to report second-quarter results. Investors will lookout for any updates on
annual profit forecast as well as performance across its dental equipment business.


REST OF THE WEEK
On the U.S. economic tap, the consumer prices index (CPI) for July is likely to increase 0.2% on
Thursday, after a similar 0.2% jump in the previous month. The so-called core CPI is expected to
report a 0.2% jump on a monthly basis. On the same day, the Labor Department's jobless claims
report is likely to show claims rising by 3,000 to 230,000 for the week ended Aug. 5, from
227,000 the week earlier. On Friday, producer prices are expected to increase 0.2%, after rising
0.1% in the previous month. In the 12 months through July, the PPI is expected to climb 0.7%,
after increasing 0.1% on the same basis in June. The University of Michigan's consumer sentiment
index for August is likely to show a preliminary reading of 71, after a reading of 71.6 in July.

U.S. drugmaker Eli Lilly will report second-quarter results before markets open on Tuesday.
Investors will be on the lookout for updates on its Alzheimer's drug candidate, donanemab, and
demand trends for its newer diabetes drug Mounjaro. Focus will also be on any changes to the
company's outlook as well as research costs in the quarter. Also, Novavax is scheduled to report
its second-quarter earnings on Tuesday. Investor focus is expected on the company's updated
COVID booster shot development and potential contracts as well as updates on its restructuring
and cost-reduction plans. Illumina Inc will report its second-quarter results after markets
close on Wednesday. Investors are likely to focus on its quarterly genomic sequencing services
performance amid biotech funding weakness, in addition to the company's ongoing efforts,
including job cuts to cushion the impact of sticky inflation and a strong dollar on its
business. Meanwhile, Insulet Corp will report second-quarter results after markets close on
Tuesday. Investors are likely to focus on quarterly sales performance for the company's insulin
pumps, particularly its tubeless insulin pumps and its adoption, in comparison to devices from
rivals, and any change in its full-year forecast. Additionally, Organon & Co is set to report
its second-quarter results before markets open on Tuesday. Investors will lookout for the
company's overall sales with focus on its birth control pills and revenue from biosimilars.
Separately, Charles River Laboratories International is expected to report second-quarter
earnings on Wednesday. Investors will be on the lookout for comments around an ongoing shortage
of lab monkeys, and any changes to the contract drug developer's annual forecast.

Walt Disney Co is expected to report its third-quarter results on Wednesday. When Fox Corp
reports its results on Tuesday, the company is likely to post a small fall in second-quarter
revenue amid a weak advertising market. On Thursday, News Corp is expected to report a decline
in its fourth-quarter revenue, hurt by a weak advertising market.

On Tuesday, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak
at the Philadelphia Business Journal's State of the Economy (0815/1215), while Federal Reserve
Bank of Richmond President Thomas Barkin is due to speak on "Recession Revisited" before the
Loudoun County Chamber of Commerce PolicyMaker Series: State of the Economy". (0830/1230)
Federal Reserve Bank of Philadelphia President Patrick Harker is scheduled to participate, and
(via pre-recorded video) Federal Reserve Bank of Atlanta President Raphael Bostic is due to give
welcome remarks before the "Connecting Communities: Shifting Perspectives and Expectations on
Employment" webinar hosted by the Federal Reserve Bank of Philadelphia. (1500/1900)
    
Rivian Automotive Inc is expected to post higher quarterly revenue on Tuesday as the company
delivered more vehicles than expected in the second quarter. Investors look forward to
commentary from management on how the demand environment is for the company and further details
on cost cuts and profitability.
 
Movie theater chain firm AMC Entertainment Holdings on Tuesday is expected to report a surge in
second-quarter revenue, helped by new films bringing moviegoers to theaters and pent-up demand
after the pandemic.

Restaurant Brands International on Tuesday is likely to show a rise in quarterly revenue, driven
by strong demand at its Tim Hortons chains and improving performance at Burger King. Investors
will be watching out for the company's expectations for the rest of the year as well as its
comments on margins and current demand trends.

On Tuesday, Under Armour is expected to post a fall in first-quarter revenue as demand slows for
its sports apparel with customers in the U.S. deferring discretionary purchases due to higher
costs of essential goods. Investors will watch out for comments on the company's inventories and
promotion strategy for the year and any forecast the company provides.

Barrick Gold is expected to report lower profit when it reports results on Tuesday, driven by
lower gold production. Analysts will be looking at commentary around copper.

Roblox Corp is expected to post a rise in second-quarter bookings as audience flocked to the
platform for its popular games such as "Adopt Me!" and "Murder Mystery 2". The company is
scheduled to report results on Wednesday, before markets open. Take-Two Interactive Software on
Tuesday is expected to report a rise in quarterly revenue as more gamers turn to its established
franchise titles.

Ralph Lauren, on Thursday, is expected to post a slight decline in quarterly revenues, as demand
for high-end apparel and accessories take a knock in the United States amid inflation, high
interest rates and weakening credit conditions. Investors will be focused on the company's
outlook, its expectations for the U.S. market this year and its comments on recovery in China.

Veterinary drugmaker Zoetis is expected to report second-quarter earnings on Tuesday. Investors
will focus on sales of pet products amid persistent inflation and staffing shortages at pet
clinics.

On Tuesday, Statistics Canada is scheduled to report a trade deficit of C$3.10 billion in June,
compared to a deficit of C$3.44 billion in the previous month. The country's building permits
report is scheduled for Wednesday.

Canadian Tire Corporation on Thursday is expected to post a decline in second-quarter revenue on
restrained discretionary spending from inflation-weary consumers and growing competition from
online retailers. Investors will be on the lookout for comments on supply chain and labor costs,
and trends in consumer spend.

The Bank of Mexico is scheduled to announce its decision on its benchmark interest rate on
Thursday. Separately, inflation numbers for Mexico and Brazil are due on Wednesday and Friday,
respectively. On Friday, Brazil's IBC-BR economic activity index and Mexico's industrial output
are due, while Argentina's industrial output data is scheduled for Wednesday.

Brazil is scheduled to host the annual LABACE air show at Sao Paulo's Congonhas airport across
three days, starting Tuesday. 

 (Reporting by Archak Sengupta; Edited by Shilpi Majumdar)
 ((Archak.Sengupta@thomsonreuters.com;))