What to Watch in the Day Ahead - Tuesday, January 30

Juniper Networks

29/01/2024 19:30

(The Day Ahead is an email and PDF publication that includes the day's major stories and
events, analyses and other features. To receive The Day Ahead, Eikon users can register at
 DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT)
    
    
Federal Open Market Committee (FOMC) is scheduled to start its two-day meeting on interest rate
policy.

Microsoft is expected to report its highest quarterly revenue growth in nearly two years on
strength in productivity software and Windows businesses. As the first mover in launching paid
AI products to customers, Microsoft's report will set the expectations for the new technology
this year.   
    
On the U.S. economic front, the Labor Department's JOLTS report is expected to show the number
of job openings likely fell by 40,000 to 8.750 million in December. Separately, the conference
board's survey is likely to indicate that the consumer confidence index for January rose to
115.0 from 110.7 in December.

Alphabet is set to report a 12% growth in fourth-quarter revenue due to increasing adoption of
artificial intelligence tools and higher spending on its cloud services. Investors are looking
for Alphabet's guidance on the growth of its AI services and related monetization efforts.

AMD will report fourth-quarter and full-year 2023 results. Investors will focus on indicators of
AI-linked demand for AMD's semiconductors and the company's ability to capture market share in
the AI chip industry.

General Motors is set to report lower fourth-quarter profit and revenue. Investors will be
watching for commentary on its struggling self-driving business Cruise and the financial outlook
for the year.

Pfizer will report fourth quarter and fiscal 2023 results before markets open. The drugmaker is
expected to post its second quarterly loss for 2023, and investors will look for updates on
integrating cancer drugmaker Seagen. Any changes to its 2024 forecast will also be closely
watched.

JetBlue is expected to report a fourth-quarter loss. The focus, however, will be on its merger
deal with Spirit Airlines. While the company has appealed a federal judge's ruling to block the
deal, analysts say the transaction has become very expensive. Meanwhile, the CFOs of United
Airlines, Riyadh Air and Wizz Air speak at the second day of the aircraft leasing industry's
flagship annual conference in Dublin, alongside the CEO of Carlyle Aviation Partners, executive
chairman of Libra Group and executives from Southwest Airlines and IndiGo. Reuters interviews
with Air Lease CEO John Plueger.

United Parcel Service is expected to report a fall in fourth-quarter profit, after it delivered
fewer holiday packages than the prior year and boosted worker pay in line with its new labor
contract with the Teamsters union.

Starbucks is expected to report a jump in first-quarter sales, boosted by steady demand for its
pricey lattes and cold beverages from its wealthy customer base. The coffee chain's annual
forecast and comments on consumer behavior, trends in China and the unionization wave that has
swept across its stores in the U.S. will be top of investors' minds. Meanwhile, Mondelez
International is expected to report a rise in fourth-quarter revenue, helped by steady demand
for its chocolates and biscuits during the holiday period and higher prices. Investors will
watch for comments on plans on pricing actions and demand forecast for 2024.

Danaher is expected to report its fourth-quarter results. Investors will focus on the
performance of its respiratory diagnostics and life sciences units.

HCA Healthcare is scheduled to report its fourth-quarter earnings. Investors will likely focus
on the company's forecast for 2024, management commentary on hospitalizations related to
respiratory diseases in the fourth quarter, and recovery in demand for medical procedures.

Marathon Petroleum is expected to report a fall in fourth-quarter profit due to a hit in
refining margins. Investors would be looking at any commentary related to demand and if there
would be any impacts of Red Sea attacks or the winter storms.

Video game publisher Electronic Arts is expected to report a rise in third-quarter bookings,
helped by a recovery in demand for video games amid an easing macroeconomic environment.

Networking gear maker Juniper Networks is expected to report a fall in fourth-quarter revenue as
companies, including telecom service providers, cut back on spending in an uncertain economy.

Food distributor Sysco is expected to post a rise in second-quarter net sales on resilient
demand for its custom-cut meat and high-quality seafood. Investors will look for comments on
pricing actions, demand, and sales forecasts.

On the Latam front, Brazil's IGP-M inflation index is likely to rise 0.26% in January, following
a 0.74% jump in the previous month. Meanwhile, net formal job positions probably fell by 372,341
in December after rising 130.097 in November. Separately, Mexico is expected to post 3.0% gross
domestic product (GDP) growth in the fourth quarter. Year on year, the Mexican economy likely
grew 0.3% compared to 1.1% growth in the previous quarter. The finance ministry is set to report
the financial balance for December. It posted a deficit of 87.78 billion pesos in the previous
month. Chile's statistics agency INE is scheduled to report the unemployment rate, which is
likely to remain unchanged at 8.7% in the quarter through December.

 (Compiled by Malini K; Editing by Tasim Zahid)
 ((Malini.K@thomsonreuters.com;))