What to Watch in the Day Ahead - Thursday, April 25

Juniper Networks

24/04/2024 19:30

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In the tech industry, Microsoft's revenue is expected to have grown 15% as AI investments drive
gains in its cloud computing and enterprise software businesses, supported by a recovery in the
PC market. Investors will pay close attention to its comments on AI, how new capabilities drew
consumers, and further investments planned in the area when the tech giant releases its
third-quarter results.

Separately, Wall Street expects Alphabet to report a rise in first-quarter revenue as growing AI
adoption propels its Google Cloud business. Analysts expect the company to provide details on
its plans to monetize its AI propositions. 

Data from the Commerce Department's Bureau of Economic Analysis is expected to show a slowdown
in U.S. economic growth. The advance estimate is likely to show the gross domestic product
likely grew at a 2.4% annualized rate during the first quarter. This compared to a 3.4%
annualized rate of growth reported in the last quarter of 2023. The Labor Department's weekly
jobless claims data is likely to show initial claims for state unemployment benefits rose 3,000
to a seasonally adjusted 215,000 for the week ended April 20. Meanwhile, the number of people
receiving benefits after an initial week of aid likely fell to 1.805 million from 1.812 million
during the week ending April 13.

Merck is scheduled to report its first-quarter earnings. Focus is expected to be on sales of
cancer therapy Keytruda and vaccine Gardasil, as well as the company's new drug Winrevair. 

Caterpillar is expected to report a rise in first-quarter revenue, helped by strong demand for
its heavy machinery and equipment as construction demand remains healthy on infrastructure
spending. Investors will be focused on the company's inventory, its 2024 outlook, and its
commentary on margins and the agriculture industry's down-cycle.

Intel is scheduled to report first-quarter results. Investors will focus on indicators of demand
from the personal computer market and the impact of the company's foundry business on its
results.

T-Mobile is expected to post a rise in first-quarter revenue, helped by customers opting for its
more affordable plans.

Comcast is expected to report a revenue rise in the first quarter, driven by strong adoption of
its streaming services and demand for experiences offered at its theme parks.

Bristol Myers Squibb will likely report first-quarter earnings before markets open. Focus is
expected to be on the drugmaker's outlook for this year and comments around the integration of
its recently completed multi-billion acquisitions of Mirati, Karuna Therapeutics, and RayzeBio.

U.S. Treasury Secretary Janet Yellen will be interviewed at a Reuters Next Newsmaker event. 

Gilead Sciences is set to report first-quarter results after the bell. Investors will look for
updates to the U.S. drugmaker's 2024 forecast amid recent clinical trial failure setbacks, the
performance of its HIV drugs in the first quarter, and any commentary on its recent $4.3 billion
buyout of CymaBay Therapeutics as the company looks beyond its older HIV drugs for growth. 

Meanwhile, Edwards Lifesciences will also report first-quarter results after the bell. Investors
will look out for its second-quarter profit outlook, the performance of its artificial heart
valves, the company's lead product, in the current quarter amid rising competition from peers
and a rebound in certain surgical procedures that were otherwise delayed by pandemic-induced
curbs along with an ease in staffing shortages.

American Airlines will report its first-quarter earnings. The airline is expected to report a
rise in revenue. Investors will look out for comments on summer travel demand and the rebound in
business travel.

Southwest Airlines will report its first-quarter earnings, and it is expected to report a rise
in revenue while losses are expected to widen. Investors will be looking out for comments on
aircraft delivery schedules from Boeing and the airline's capacity expansion plans. 

Bombardier is expected to report higher first-quarter cash burn and flat revenues compared with
the same three months a year earlier, as growth in business jet travel levels off after steep
gains following the pandemic.

Royal Caribbean is expected to post a rise in first-quarter revenue on the back of strong demand
for cruises. Investors will watch out for comments on the impact of higher fuel costs and Middle
East tensions on the company's operations.

Honeywell International is expected to report a jump in first-quarter profit on strong
performance in its aviation business. Investors will be closely looking at the company's
forecast.

Chipmaking tools manufacturer KLA is expected to report a fall in third-quarter revenue as the
firm grapples with sluggish demand for its products in an uncertain economy.

Also, Microsoft-backed cybersecurity software firm Rubrik's stock is expected to start trading
on the NYSE after its initial public offering. 

Dow is expected to report a fall in first-quarter revenue due to low demand in key markets.
Analysts will examine the outlook for the latter half of the year.

Tobacco giant Altria is due to report its first-quarter results.

Exchange operator Nasdaq is due to report its first-quarter earnings.

Meanwhile, Beverage maker Keurig Dr Pepper is expected to post a rise in first-quarter revenue,
helped by steady demand for its sodas and tonic water. Investors will look for comments on
pricing actions, demand, and annual forecasts.

Harley-Davidson is expected to report a decline in first-quarter profit compared to a year ago,
as leisure purchases remain pressured amid high borrowing costs. Investors will be looking for
commentaries on the demand environment and updates on the launch of its new 2024 models.

Capital One Financial is expected to post a jump in first-quarter profit as the consumer lender
charged higher interest rates on loans, boosting its interest income.

Arthur J. Gallagher is expected to report a jump in first-quarter profit as the insurance
brokerage helped by higher commissions and fees.

Medical equipment maker West Pharmaceutical Services will report its first-quarter results.
Investors will watch out for comments on demand for its syringe manufacturing as the FDA
evaluated plastic syringes made in China and demand for injected drugs, including the popular
Wegovy and Mounjaro, continues to grow.

Farming supplies retailer Tractor Supply is expected to post a rise in first-quarter revenue,
helped by steady demand for discretionary and agricultural products. Investors will look for
comments on demand, pricing action, the impact of Red Sea disruptions, and annual forecasts.

Insurance broker Willis Towers Watson is scheduled to report its first-quarter earnings.
Analysts expect its profit to grow, helped by strong performance across units.

Juniper Networks is expected to post lower first-quarter revenue. The company's revenue will be
hit by weak spending by its cloud computing and enterprise clients in an uncertain economy.

Healthpeak Properties will report first-quarter results after market close. Investors will
monitor the real estate investment trust's performance post its merger with Physicians Realty
Trust, any updates to its 2024 forecast, and commentary on demand for its medical office and
life science properties.

Lazard will post a higher first-quarter profit helped by a rebound in dealmaking that boosted
investment banking revenue.

Roku is expected to post a 14.52% rise in revenue in the first quarter, helped by customers
moving to ad-based streaming.

Utility firm CMS Energy is expected to report a rise in first-quarter profit. Investors will
look for updates on the company's ongoing rate cases and plans to improve reliability and add
renewables.



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