What to Watch in the Day Ahead - Tuesday, May 7

Jacobs Solutions

06/05/2024 19:33

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Analysts expect Disney's quarterly revenue to grow by 1% in the quarter ended March. Analysts
are looking for guidance on its slate of productions for the year, forecast for its streaming
unit and profitability of the division, which contains Disney+.

Apple holds a media event where it is expected to debut new iPads, potentially including a new,
beefed-up processor.

Oil and gas firm Occidental Petroleum is expected to report a fall in first-quarter profit, hurt
by lower gas prices. Investors and analysts will look for comments on full-year growth
expectations and production cuts.

Rivian is expected to report a 76% surge in first-quarter revenue as the company delivered more
vehicles in the three-month period. Investors and analysts expect the company to comment on or
provide guidance on its production shutdown and how it would help reach profitability this year.

Lyft is expected to report a 16% rise in first-quarter revenue, its best in over a year, as its
ride-share business grows thanks to lower fares.

Electric truck maker Nikola is expected to report a smaller loss due to cost cuts and higher
vehicle deliveries.

Contract chipmaker GlobalFoundries will report first-quarter earnings before the market opens.
Its forecast will offer clues on whether an excess supply of semiconductors has started clearing
up after a months-long slump in demand.

Video game publisher Electronic Arts is expected to report a fall in fourth-quarter bookings as
an uncertain economy and elevated inflation weigh on demand for its video game titles.

A court hearing is scheduled in JPMorgan Chase's lawsuit against Tesla over a bond contract
dispute that arose after Elon Musk tweeted in 2018 that he might take his electric car company
private.

The U.S. Federal Reserve's data on consumer credit are expected to rise to $15 billion in March
after adding $14.12 billion in the previous month.

Reddit will report first-quarter earnings after the market close. This will be the first report
since the social media company went public in March after a much-awaited initial public
offering. It will offer investors clues on how the company is competing with larger rivals,
including Meta Platforms, in a recovering advertising market.

Spirit AeroSystems will report its first-quarter results, and the company is expected to report
a smaller loss. Investors will be focused on updates related to the company's merger talks with
Boeing and any impact on its operations due to Boeing's production issues.

Federal Reserve Bank of Minneapolis President Neel Kashkari is expected to participate in a
moderated conversation on the economic overview before the Milken Institute 2024 Global
Conference.

Tinder's parent company, Match Group, is expected to report higher first-quarter revenue, a sign
that its push to attract new users by adding new features to its dating apps is working.
Investors will be looking for commentary on economic uncertainty weighing on discretionary
spending, the marketing push at Tinder, and efforts to improve products for Gen Z and women
users.

Kenvue is expected to report its first-quarter earnings. Investors will likely monitor any
changes to the company's annual profit forecast and the performance of its key brands.

Packaged food maker WK Kellogg is expected to post a sequential rise in first-quarter revenue,
helped by steady demand for its cereals and higher product prices. Investors will be watching
for the company's forecast and comments on current demand trends, further pricing actions, and
cost pressures.

Cloud communications firm Twilio is expected to report higher first-quarter revenue, helped by
growing demand for its solutions as businesses ramp up digitization efforts.

Fintech Jack Henry & Associates is expected to report a jump in third-quarter profit, helped by
robust demand for banking technology.

Bio-Rad Laboratories is set to report first-quarter results after markets close. Investors will
look out for any updates to the company's full-year revenue growth outlook amid subdued demand
for its life sciences tools and products segment.

Mckesson is set to report fourth-quarter results after market close. Investors will look for
quarterly performance for the company's speciality medicines, commentary on demand in its
international segment, and any updates to the drug distributor's revenue outlook.

Waters is also expected to report its first-quarter earnings. Investors will focus on the
performance of its lab equipment and tools used for drug research and development.

Jacobs Solutions will report its second-quarter results. Analysts expect the engineering
consulting firm to see sustained demand from water, energy transition, and transportation end
markets owing to U.S. government spending amid ongoing inflationary pressures.

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

Assurant is set to report its first-quarter earnings. The insurer is expected to post a jump in
profit.

Datadog is expected to forecast second quarter revenue above estimates as the company sees
growth in usage and steady demand for AI-enabled security solutions.

Arcadium Lithium, formed in early 2024 by the merger of Livent and Allkem, is expected to post a
drop in first-quarter profit due to sagging prices for the metal used to make electric vehicle
batteries.

Electric utility firm Duke Energy is expected to post a rise in first-quarter profit, helped by
higher rates and lower expenses.

Industrial automation firm Rockwell Automation is expected to post a lower second-quarter
revenue and profit amid ongoing supply chain constraints.

On the Canadian economic front, the Ivey Purchasing Managers Index data for April is on tap. The
seasonally adjusted index rose to 57.5 in March, posting its highest level since March 2023,
while the unadjusted PMI rose to 63.0.
  
Integrated oil and gas firm Suncor Energy is expected to report a fall in first-quarter profit
on Tuesday, hurt by lower gas prices. Investors and analysts will look for comments on full-year
growth expectations and production cuts. 
    
The Bank of Canada's Senior Deputy Governor, Carolyn Rogers, will appear before the House of
Commons Standing Committee on Public Accounts. The Senior Deputy Governor will be accompanied by
Coralia Bulhoes, Chief Financial Officer and Managing Director of Financial Services.

Meanwhile, in Latin America, Mexico is likely to report its consumer confidence numbers for
April. Separately, Brazil is set to report its trade balance data for May. Chile is expected to
publish a trade surplus of $1.8 billion in April, compared to $1.77 billion the month before. On
the same day, Chile's central bank is likely to release data on copper exports for April.

 (Compiled by Anjana Jayakrishnan Nair in Bengaluru; Editing by Tasim Zahid)
 ((AnjanaJayakrishnan.Nair@thomsonreuters.com;))