What to Watch in the Day Ahead - Thursday, December 19

Cintas

18/12/2024 19:35

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On the U.S. economic front, the country's third-quarter final GDP number is due, which is
expected to remain unrevised at 2.8%. Additionally, a report from the Labor Department is likely
to show initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted
230,000 for the week ended Dec. 14. Continued jobless claims is projected to have risen to 1.890
million for the week ended Dec. 7 from 1.886 million reported in the previous week. In another
report, existing home sales in the U.S. are forecast to have increased to a seasonally adjusted
annual rate of 4.07 million units from 3.96 million units recorded in the previous month.
Separately, the final figures for the third-quarter Personal Consumption Expenditures (PCE)
price index and core PCE price index are also due for release. The core PCE price index for the
quarter is forecast to remain unchanged from the preliminary estimate of 2.1%.

Nike is expected to post a fall in second-quarter revenue, hurt by weak demand for its apparel
and shoes amid intense competition from Roger Federer-backed On and Deckers' Hoka. Investors
will lookout for new CEO Elliott Hill's vision for the company, any new turnaround plan and how
the company would battle potential tariff hikes under the new Trump administration.

Analysts expect FedEx to report a year-over-year drop in second-quarter profit due to a stubborn
delivery slump that has customers trading down to slower, lower-profit deliveries.

Cintas is projected to post a rise in second-quarter revenue, driven by stable demand in its
uniform rental and first aid segments. Investors will look out for any changes to its full-year
forecast for sales and profit.

Price-conscious shoppers' pivot to cheaper private labels instead of branded household staples
is expected to weigh on Conagra Brands' second-quarter revenue. The company is forecast to post
a decline in quarterly revenue, while investors will look out for comments on demand in domestic
retail and food service segments and any update to the annual forecasts.

Darden Restaurants is expected to report growth in second-quarter revenue, helped by higher menu
prices and steady demand at its high-end Olive Garden and LongHorn Steakhouse chains. Investors
will look out for comments on annual forecast updates, pricing strategy, restaurant traffic and
cost control.

In Latin America, the Mexican central bank is expected to lower the country's benchmark interest
rate by 25 basis points to 10% when it announces its latest policy decision.

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 (Reporting by Ananya Roy in Bengaluru; Editing by Vijay Kishore)
 ((Ananya.Roy@thomsonreuters.com;))