What to Watch in the Day Ahead - Friday, February 2

Karuna Therapeutics

01/02/2024 19:45

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Exxon Mobil is expected to release its fourth-quarter and full-year 2023 results before the
market opens. Analysts expect the company to report fourth-quarter earnings fell 35% to $9
billion, or $2.11 per share, on lower oil prices and refining margins. Full-year net profit is
estimated to be $37.4 billion, down on energy prices from $59.1 billion in 2022, according to
LSEG estimates. Results will reflect a $2.5 billion impairment charge in the fourth quarter on a
write-down of California oil and gas properties.

On the U.S. economic front, Labor Department's Bureau of Labor Statistics monthly employment
report is on the cards. Nonfarm payrolls are expected to increase by 180,000 jobs in January,
after adding 216,000 in December. Private payrolls probably rose by 155,000 jobs. The
unemployment rate likely rose to 3.8% in January from 3.7% in December. Meanwhile, average
hourly earnings are expected to rise 0.3% in January, after a 0.4% gain in December. The
year-on-year wage increase will likely be 4.1%, matching the previous month's gain. Separately,
the Commerce Department's Census Bureau data is expected to show that factory orders for
December rose 0.2%, following a 2.6% jump in November. Lastly, the University of Michigan's
final reading of its Consumer Sentiment Index for January likely advanced to 78.9, from
December's final reading of 78.8. 

Chevron is scheduled to release fourth-quarter and full-year results. Fourth quarter results are
expected to be lower than a year ago on weaker oil and gas prices. The company has said it
expects to take up to $4 billion non-cash charge to oil and gas production assets in California
and for costs tied to previously sold assets.

AbbVie is scheduled to report its fourth-quarter earnings. Investor focus is expected to be on
the company's forecast for 2024 and management's commentary on the sales erosion of Humira due
to competition from biosimilars.

Bristol Myers Squibb will likely report fourth quarter and full year 2023 earnings before
markets open. Focus is expected to be on the drugmaker's 2024 outlook and comments around its
M&A strategy after it announced three multi-billion acquisitions during the quarter- Mirati,
Karuna Therapeutics, and RayzeBio.

Health insurer Cigna Group is expected to report fourth-quarter earnings. Investors will look
out for the health insurer's medical costs, as some rivals have flagged increased demand for
medical care this quarter. Also, any color on 2024's outlook and update on sale of its Medicare
Advantage unit will catch interest.

Regeneron Pharmaceuticals is set to report its fourth-quarter earnings before markets open. The
focus will be on sales of its eye disease drug Eylea, especially the higher dose version, and
its eczema drug Dupixent.

Telecom and cable operator Charter Communications is expected to report a rise in profit in the
fourth quarter due to stable growth in small and medium business customer base.

Condom maker Church & Dwight is expected to post a rise in fourth-quarter revenue backed by
resilient demand for its household and personal care products despite higher prices. Investors
will eye for comments on demand and volume trends, margins, impact from costs and any forecast
the company provides for the upcoming year.

Professional services and consulting firm Aon is expected to report a jump in fourth-quarter
profit, helped by strong performance in its commercial risk solutions unit.

In Latin America's largest economy, Brazil, industrial production probably rose 0.3% in
December, after a 0.5% growth in November, according to statistics agency IBGE. On a yearly
basis, production probably ticked up 0.1%, compared to a 1.3% jump in the prior month.
Separately, January consumer prices for Sao Paulo, as measured by the IPC-FIPE index and seen as
an early gauge of Brazil's inflation index, are also set to be released.

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