What to Watch in the Week Ahead and on Monday, November 13

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10/11/2023 19:31

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ON MONDAY 

Tyson Foods is expected to post a slight drop in fourth-quarter revenue as customers cut back
meat purchases in the face of still high inflation. Investors will eye for comments around
demand trends, segment operations, margin recovery and the next fiscal year's forecast that the
company will provide.

The U.S. government will likely post a budget deficit of $30 billion in October.

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REST OF THE WEEK

Walmart, the world's largest retailer, is expected to report a rise in third-quarter profits on
Friday. As a bellwether for the industry, investors will keep an eye on its outlook for the
holiday season at a time when mixed economic signals make it hard to predict how consumers will
shop during the most crucial period of the year for retailers. Separately, Target Corp is
expected to post a fall in third-quarter sales on Wednesday, reflecting weakness in demand
stemming from strained consumer spending due to still-high borrowing costs and food prices.
Investors will look for comments and forecasts for the all-important holiday season along with
anything related to promotions offered by the company, inventory level as well as on customers
also cutting back on groceries and essentials.

Macy's is expected to post a drop in third-quarter revenue on Thursday, weighed by choppy
consumer spending and softening credit card revenues. Investors will look out for comments on
consumer health and demand outlook going into the crucial holiday season. 

A raft of U.S. economic data is expected in the week ahead. On Tuesday, the Labor Department is
scheduled to report consumer price index rose 0.1% in October, after an increase of 0.4% in the
month before. Excluding the volatile food and energy components, the CPI is expected to rise
0.3% in October, matching September's gain. The core CPI will likely gain 4.1% on a year-on-year
basis in October, also matching the previous month's gain. On the following day, the Labor
Department is expected to show the producer price index (PPI) for final demand likely rose 0.1%
in October after advancing 0.5% in September. Also on Wednesday, the Commerce Department is
expected to report retail sales probably fell 0.1% in October, compared to a 0.7% increase in
September. Excluding automobiles, gasoline, building materials and food services, retail sales
are expected to rise 0.1% in October after climbing 0.6% the month before. A separate report
from the Commerce Department is scheduled to report business inventories likely rose 0.3% in
September after gaining 0.4% in the previous month. 

U.S. semiconductor toolmaker Applied Materials is expected to post a fall in fourth-quarter
revenue when it reports results on Thursday due to weak demand.

Furthermore, on the economic calendar, the Labor Department's jobless claims data for the week
ended Nov. 11 is due on Thursday. On the same day, a separate report from the Labor Department
is scheduled to show import prices possibly fell 0.3% in October after rising 0.1% in the month
before. On Friday, a report from the Commerce Department is expected to say housing starts edged
lower to a seasonally adjusted annual rate of 1.345 million units in October from 1.358 million
units in September. Meanwhile, permits for future homebuilding are expected to slip to a rate of
1.450 million units in October from 1.471 million units in the previous month. A report from the
Federal Reserve on Thursday is expected to show industrial production likely fell 0.4% in
October after advancing 0.3% in September. Meanwhile, capacity utilization for the industrial
sector, a measure of how fully firms use their resources, is expected to be at 79.4% in October,
from 79.7% in September. 

On Tuesday, Federal Reserve Bank of Cleveland President Loretta Mester is expected to give brief
opening remarks before the virtual "Conversations on Central Banking: The Unequal Burden of
Inflation" event hosted by the Federal Reserve Bank of Cleveland. Mester, on Thursday, is also
scheduled to give opening and introductory remarks before the hybrid 2023 Financial Stability
Conference: "Financial Stability in Times of Macroeconomic Uncertainty", also hosted by the
Federal Reserve Bank of Cleveland. Federal Reserve Bank of Chicago President Austan Goolsbee, on
Tuesday, is likely to participate in a conversation on the economy and monetary policy before
the Detroit Economic Club. On Friday, Federal Reserve Bank of Boston President Susan Collins is
expected to speak before the 67th Economic Conference, "Rethinking Full Employment", hosted by
the Federal Reserve Bank of Boston. On the same day, Federal Reserve Bank of San Francisco
President Mary Daly will give a closing keynote before the 33rd Frankfurt European Banking
Congress. On Thursday, Federal Reserve Bank of New York President John Williams speaks before
the 2023 U.S. Treasury Markets Conference hosted by the Federal Reserve Bank of New York.

Networking equipment maker Cisco Systems is expected to post a rise in first-quarter revenue
when it reports results on Wednesday, driven by easing supply chain hurdles, which are helping
in backlog fulfillment for its networking products.

Home Depot is expected to report a drop in third-quarter same-store sales on Tuesday as home
improvement demand continues to slide amid high inflation, rising interest rates and shrinking
household budgets. Analysts will be watching for the company's annual forecast, its comments on
current demand headwinds, the housing market, margins, and any signs of discounting.

Bath & Body Works is expected to post a fall in third-quarter revenue on Thursday as customers
cut down on purchasing non-essential items, such as its pricier home fragrances and personal
care products. Investors will watch the company's comments on demand trends, commentary around
the holiday season and any forecasts.

Gap, on Thursday, is expected to post a decline in third-quarter sales hurt by slowing demand
for outdated apparel and footwear as customers look for newer and trending styles. Investors
will look out for comments on holiday season sales, inventory levels, new CEO Richard Dickson's
plans for the company and increasing competition from Shein and Amazon.

TJX is expected to post a rise in third-quarter revenue on Wednesday, helped by strong demand
from inflation-hit customers looking for promotional deals and bargains. Investors will look for
comments on demand trends, commentary around the holiday season and any outlook the company
provides.

Tencent Music is expected to report a 14% fall in third-quarter revenue on Tuesday after the
company shut down its live-streaming features amid Beijing's crackdown on gambling.

Statistics Canada will release the country's producer prices and raw materials prices data for
October on Friday. The country's wholesale trade and manufacturing sales data are set for
release on Wednesday. On the following day, the Canadian Mortgage and Housing Corporation is
expected to report the seasonally adjusted annualized rate of housing starts for the month of
October.

Canadian grocery and pharmacy retailer Loblaw, on Wednesday, is expected to post a rise in
third-quarter revenue as consumers seek lower-cost alternatives for necessities as they cut down
on spending on higher-margin discretionary items. Investors will watch for remarks on the
holiday season, private label brands and promotional initiatives for the coming year.

On the Latam economic radar, Brazil's IBC-BR economic activity index, a key indicator of gross
domestic product (GDP), is expected to be released on Thursday. The country's inflation data for
November, measured by the IGP-10 price index, is expected on Friday. Brazil's service sector
growth data for September is due for release on Tuesday. Separately on Tuesday, Argentina's
monthly inflation rate will likely be 9.8% for October, after a reading of 12.7% in September.
The country's trade balance data is scheduled for release on Friday.


    
  

 (Compiled by Shreya Sabharwal; Editing by Tasim Zahid)
 ((Shreya.Sabharwal@thomsonreuters.com;))