What to Watch in the Day Ahead - Thursday, February 6
05/02/2025 19:32
(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) E-commerce giant Amazon is expected to report a jump in fourth-quarter revenue, powered by a holiday shopping season boost in its retail business and steady growth at its cloud computing unit. The company's forecasts, capital spending plans, and cloud growth expectations will be on top of investors' minds. Eli Lilly is set to report fourth-quarter earnings, weeks after it forecast quarterly sales of its popular weight-loss treatment Zepbound below Wall Street estimates. Investors will look for comments around the supply and inventory of Zepbound and diabetes drug Mounjaro at wholesalers, as well as any steps that Lilly is taking to stimulate demand. The focus will also be on any updates from its next-generation obesity drugs. On the U.S. economic calendar, the Labor Department is expected to report that initial claims for state unemployment benefits likely saw an increase of 6,000 to a seasonally adjusted 213,000 for the week ended Feb. 1. Meanwhile, continued jobless claims probably rose to 1.874 million for the week ended Jan. 25 from 1.858 million in the week before. Additionally, preliminary unit labor costs likely jumped at a 3.4% annualized rate in the fourth quarter, from 0.8% reported in the prior quarter. Federal Reserve Board Governor Christopher Waller is set to speak on "Payments" before the "Navigating the Future of Payments with Christopher Waller" event hosted by the Atlantic Council in Washington. (1430/1930) Dallas Fed President Lorie Logan is expected to participate in the "Future Challenges for Monetary Policy in the Americas" panel before the Bank for International Settlements Chapultepec Conference in Mexico City. (1710/2210) Honeywell is set to report fourth-quarter results, with expectations of higher quarterly revenue but lower profit. Investors will look out for an update on its strategic alternatives, which could include a spin-off of its aerospace business. Ralph Lauren is expected to post a rise in third-quarter revenue, driven by a strong demand for its pricey cashmere sweaters and shirts during the holiday season. Investors will look out for comments regarding an increase in prices, business in China and an update to its fiscal year outlook. Chocolate maker Hershey is expected to post a drop in fourth-quarter sales, hurt by soft demand and rising cocoa prices. Investors will look out for comments on commodity costs, consumer demand for chocolates and salty snacks as well as annual forecast. Roblox is expected to report a jump in fourth-quarter revenue as the videogame platform benefits from healthy in-game spending on its games during the holiday season. Meanwhile, videogame publisher Take-Two Interactive Software is expected to report a rise in third-quarter revenue, helped by consistently strong spending on its major titles such as Grand Theft Auto V and NBA 2K. Crude producer ConocoPhillips is expected to report lower fourth-quarter profit compared to the same quarter a year ago. Investors will watch for any commentary on global oil supply and demand and Trump's tariff plans. Top cigarette maker Philip Morris is set to report its fourth-quarter results. The company will update investors on progress towards growing sales of smoking alternatives like ZYN nicotine pouches and heated tobacco device IQOS, which it is preparing to roll out in the United States. Hotel operator Hilton Worldwide is expected to report its fourth-quarter and full-year earnings results. Analysts are focused on the performance of business travel, particularly large group bookings. They are also looking out for comments on leisure travel demand in the U.S. Bristol Myers Squibb is set to report its fourth-quarter results. The focus will be on its annual outlook and updates on its $1.5 billion cost savings program. Yum Brands is expected to announce a rise in fourth-quarter revenue on demand recovery for restaurants in the U.S. Investors will look out for comments on forecasts, marketing and promotional activities, and cost-saving measures. Becton Dickinson is set to report its first-quarter results. The focus will be on changes to its annual forecast and quarterly performance of its medical and surgical products. Sportswear maker Under Armour is expected to post a decline in third-quarter revenue, hurt by weaker demand for its products. Investors will look for comments on demand, the impact of rising competition, the impact of cost savings measures as well as annual forecasts. Image-sharing platform Pinterest is expected to report higher fourth-quarter revenue, driven by strong digital advertising spend on its platform during the crucial holiday shopping season when brands spend heavily to promote their products and services. Analysts and investors will also eye on Pinterest's commentary about advertisers from food and beverage sector as they were grappling with macroeconomic challenges and adoption of its Performance+ artificial intelligence-driven advertising tools. Air Products and Chemicals is expected to report its first-quarter results. Investors will closely watch the results as it will be the company's first earnings since its shareholders handed victory to activist investor Mantle Ridge by unseating the CEO from its board. Tapestry is expected to post a modest rise in second-quarter sales, helped by demand for Coach-branded handbags and promotions. Investors will look out for comments on business turnaround plans, demand outlook and future growth strategy. Regency Centers is expected to post a rise in its fourth-quarter revenue as the company benefits from strong leasing demands at its grocery-anchored shopping centers. Packaged food company Kellanova is expected to post a rise in fourth-quarter sales, driven by steady demand for its salty snacks offerings. Investors will look out for comments on progress in its merger deal with Mars, and demand forecast. Kenvue is expected to report fourth-quarter results. Investors are expected to look out for the company's 2025 forecast and sales in its closely watched skin health and beauty products segment. Intercontinental Exchange is expected to post a rise in fourth-quarter profit, helped by strong trading volumes. Canada's Bombardier is expected to report higher fourth-quarter deliveries as the business jet maker handed more planes to customers. Analysts and investors will be expecting the planemaker to outline plans to mitigate the impact of potential U.S. tariffs in March on Canada and Mexico. Pricey parka maker Canada Goose Holdings is expected to report a rise in its third-quarter revenue, powered by resilient demand for its puffer jackets in key luxury market China. Investors will be watching out for the company's forecast, comments on current demand trends, the impact from tariffs, China recovery. Bank of Canada Governor Tiff Macklem is expected to participate in a panel discussion in Mexico City. Canada's Ivy PMI data for January is scheduled for release. In Latin America, Mexico's central bank is set to announce its latest monetary policy decision. The central bank is likely to lower its key interest rate by 50 bps to 9.50%. Separately, the country's consumer confidence data for January is also due. (Compiled by Lactus Fernandes in Bengaluru; Edited by Vijay Kishore) ((Lactus.Fernandes@thomsonreuters.com;))