What to Watch in the Week Ahead and on Monday, August 1
29/07/2022 19:30
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ON MONDAY
On the U.S. economic tap, S&P Global's final manufacturing sector PMI output index for July,
which stood at a reading of 52.3 in the month before, is scheduled for release. ISM's
manufacturing sector PMI for July likely dropped 1.0 point to 52.0 in July. The Commerce
Department is set to report construction spending in June likely accelerated 0.2% after slipping
0.1% in May.
Star stock picker Cathie Woods' ARK Innovation fund is on pace to close the month with a 16%
gain, its first positive month since October. Analysts and investors say that the fund's recent
success is one sign that investors expect the Federal Reserve to pause its interest rate hikes
in early 2023, potentially giving a boost to the sort of speculative growth stocks Woods invests
in.
Erica Williams, the Chair of the U.S. Public Company Accounting Oversight Board, is expected to
speak to Reuters on a range of topics, including an update on the status of an ongoing
negotiation between Washington and Beijing to resolve a decades-long restriction of access to
audit the books of U.S.-listed Chinese companies.
Former Platinum Venture Partners Inc Managing Director Daniel Small is scheduled to face trial
on charges of defrauding bondholders in Black Elk Energy Offshore Operations LLC, an oil
exploration company Platinum owned, by diverting money from asset sales to Platinum ahead of
Black Elk's 2015 bankruptcy.
Brazil and Mexico's reading for S&P Global's manufacturing sector PMI for July is set for
release. Chile's economic activity index for June, a close proxy of gross domestic product, is
expected. Brazil's trade balance data for July is due for release.
REST OF THE WEEK
On the U.S. economic calendar, the Labor Department, on Friday, is scheduled to report nonfarm
payrolls in July decreased to 250,000 from 372,000 in June. Separately, private payrolls in July
likely fell to 230,000 from 381,000 in the prior month. Unemployment rate in July likely
remained unchanged at 3.6%. Average earnings were also likely unchanged in July at 0.3%, but
they grew 4.9% annually. On Tuesday, the Labor Department's Job Openings and Labor Turnover
Survey (JOLTS) report is expected to show job openings in June likely dropped to 11 million from
11.254 million in May. On Wednesday, the Commerce Department will likely report a 1.2% gain in
factory orders for June following a 1.6% rise in May. On Wednesday, ISM's business survey is
expected to show reading for non-manufacturing sector PMI dipped to 53.5 in July from 55.3 in
June. S&P Global's business survey is likely to report the final reading for services sector PMI
output index and composite PMI output index for July. On Thursday, the Commerce Department is
expected to show goods trade deficit in June likely shrunk to $80.1 billion, from $85.6 billion
in the previous month. On Thursday, the Labor Department is expected to report initial claims
for state unemployment benefits fell 1,000 to a seasonally-adjusted 255,000 for the week ended
July 30. It is also likely to report continuing claims for the week ended July 23 rose to 1.366
million from 1.359 million in the week before.
On Thursday, Alibaba Group Holding Ltd is expected to post a fall in its first-quarter revenue,
hurt by competition and a slowdown in consumer demand amid increased regulatory uncertainties.
Pharmaceuticals major Moderna Inc is expected to report second-quarter earnings on Wednesday.
Investors will focus on any changes to the sales forecast for its COVID-19 vaccine, and comments
on how the vaccine maker expects to drive growth once demand for COVID-19 vaccines begins to
wane. Eli Lilly and Co is expected to report second-quarter earnings on Thursday. Investor focus
is likely to be on sales of the company's COVID-19 therapies and updates on its experimental
Alzheimer's drug. Drugmaker Regeneron Pharmaceuticals Inc is also set to report its
second-quarter results on Wednesday, before markets open. Investors will watch for sales growth
of its blockbuster drugs Eylea, Dupixent, comments on its "next-generation" antibodies for
COVID, and impact of FX headwinds. On Tuesday, biotechnology company Gilead Sciences Inc is set
to report its second-quarter financial results. Amgen Inc is expected to post its second-quarter
financial results on Thursday.
On Tuesday, Starbucks Corp is expected to post a jump in its second-quarter revenue, as strong
demand in North America helps the coffee chain ease the blow from a sales hit in China.
Investors will be looking out for the company's commentary on China demand, cost pressures,
labor and price increases.
On Wednesday, Taco Bell-parent Yum Brands Inc is expected to post an increase in second-quarter
same-store sales, boosted by strong online demand and higher prices. Investors will look out for
comments on U.S. labor shortages, sales trends and the impact of inflation on its business.
Thomson Reuters Corp will report second-quarter results on Thursday. Its earnings release and
conference call could detail how clients in its legal, tax and accounting, and corporate
businesses are faring at a time when the United States economy appears at risk of entering a
recession. On Wednesday, New York Times Co is expected to post a rise in its second-quarter
revenue. Investors will look out for any commentary on the digital advertising market.
On Tuesday, Caterpillar Inc is poised to report solid second-quarter earnings on strong revenues
in its construction and resources divisions.
On Tuesday, Federal Reserve Bank of Chicago President Charles Evans is scheduled to host hybrid
on-the-record breakfast conversation on the U.S. economy and monetary policy with members of the
media. On Wednesday, Federal Reserve Bank of Cleveland President Loretta Mester is scheduled to
participate in a fireside chat conversation before the Economic Club of Pittsburgh.
Kellogg Co is expected to report a growth in second-quarter revenue on Thursday, boosted by
price hikes and resilient demand for its cereals and snacks. Investors will be interested in any
updates on the spin-off its assets, and commentary on consumer response to price increases. On
Thursday, Beyond Meat Inc is likely to post an increase in second-quarter revenue, helped by
strong demand for its plant-based jerky and its tie-ups with restaurant chains. Investors will
look out for its comments on current levels of demand and the impact of inflation on its
business.
On Tuesday, Electronic Arts Inc is expected to post a fall in first-quarter revenue hurt by
decreased sales for its popular titles such as "Apex Legends" as people return to post-pandemic
habits.
On Tuesday, Airbnb Inc is set to post an increase in second-quarter profit and revenue, helped
by a rebound in travel demand and continued adoption of long-term stays.
Oil sector players Occidental Petroleum Corp and Chesapeake Energy Corp are set to release their
second-quarter results on Tuesday. While Marathon Oil Corp and CococoPhillips will release their
earnings for the second quarter on Wednesday and Thursday, respectively.
On Tuesday, Apple Inc is expected to defend itself against claims from Pinn Inc that its AirPods
infringe patents covering Pinn's "personal wireless media station having a wireless earbud and
main body." Apple argues that, among other things, the patents are invalid.
On Thursday, Business jet maker Bombardier Inc is expected to report higher revenues and a
narrower second-quarter loss on sustained demand for flying privately. Investors will be looking
for more on orders of the company's newly announced Global 8000 jet.
On Tuesday, generic drugmaker Mylan Pharmaceuticals Inc is likely to ask the Federal Circuit to
overturn a Patent Trial and Appeal Board ruling against its bid to invalidate a patent covering
Merck & Co's blockbuster diabetes drug Januvia, which earned Merck over $3.3 billion last year.
Mylan said the chemical composition of Januvia had already been disclosed in publications
including an earlier Merck patent.
Group life insurer MetLife Inc is scheduled to report its second-quarter earnings after markets
close on Wednesday. Investors are awaiting details on how rising insurance prices will impact
MetLife's bottom line. Health insurer Cigna Corp will report second-quarter earnings on
Thursday, before markets open. Investors will focus on the impact of an Omicron-led surge in
COVID infections on the health insurer's expenses, medical procedure utilization trends and any
updates to the company's full-year outlook.
On Wednesday, New York Stock Exchange-owner Intercontinental Exchange Inc is expected to report
a rise in its second-quarter profit as trading volumes surge amid raging volatility across asset
classes. Analyst focus is also expected on the demand for the company's hedging tools amid
rising rates and geopolitical turmoil.
On Tuesday, the U.S. Court of Appeals for the Federal Circuit will hear Koninklijke Philips NV's
argument that it should revive Philips' bid for an import ban at the International Trade
Commission against Fitbit Inc and Garmin Ltd, whose devices Philips said infringed its
health-monitoring patents. Philips said the commission misinterpreted its patents when it found
that one patent was invalid and the other was not infringed.
On Tuesday, the U.S. Court of Appeals for the Federal Circuit is expected to hear VR Optics
LLC's argument that it should revive its patent case against former business partner Peloton
Interactive Inc. Peloton hired the owners of VR Optics to help develop its earliest stationary
bikes, and VR Optics later sued Peloton for infringing a patent covering interactive fitness
equipment. A New York federal court said the patent was invalid because the invention had
already been disclosed. VR Optics says the lower court misread the patent.
Ishan Wahi, a former product manager for cryptocurrency exchange Coinbase Global Inc, is
expected to appear in federal court in Manhattan on Wednesday on insider trading charges.
DoorDash Inc is likely to post a jump in second-quarter revenue on Thursday, as demand for food
delivery remains firm even as consumers return to dining out more. Investors will be focused on
the company's forecast and comments on labor pressures and consumer behavior amid inflation.
On Friday, Statistics Canada is expected to show the country's unemployment rate likely advanced
5.0% in July, after rising 4.9% in June. Canada's building permits for June are scheduled for
release on Thursday. The country's June trade balance, which stood at C$5.32 billion in May, is
also set for release on Thursday. On Tuesday, S&P Global's manufacturing sector PMI for July is
due for release, while on Friday, Ivey PMI data for July is expected to be released.
Brazil's reading for S&P Global's services sector PMI, and composite PMI for July is likely to
be released on Wednesday, while industrial output for June is expected on Tuesday. The reading
for the country's IGP-DI inflation index for July, and automobile sales for the month are
expected on Friday. Mexico's consumer confidence reading for July, and gross fixed capital
formation for May, are due for release on Thursday and Friday, respectively.
(Compiled by Priyal Mahtta in Bengaluru; Editing by Devika Syamnath)
((Priyal.Mahtta@thomsonreuters.com))