What to Watch in the Week Ahead and on Monday, July 25

KOSS

22/07/2022 19:34

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ON MONDAY

Judge Alan Albright is scheduled to hold a trial on headphone maker Koss Corp's bid for
royalties from sales of Apple Inc's AirPod earbuds and Beats-branded headphones, which Koss says
infringe two patents covering wireless headphones. Apple says its products do not infringe and
the patents are invalid. Each side will get 10 hours to present its case.

Mexico's national statistics agency is set to release the economy's growth for May. The
country's economy grew 1.1% in April.

LIVECHAT-REUTERS GLOBAL MARKETS FORUM
Central banks around the world are battening down the hatches in their fight against surging
supply-side inflation. The Reuters Global Markets Forum will host policymakers, fund managers
and economists to give us their outlooks on inflation, the path ahead for monetary policy, and
how to navigate these choppy markets. Scheduled speakers are Sanjeev Sanyal, member of the
India's Economic Advisory Council and former India chief economic adviser (0130/0530), and
Timothy Congdon, former economic adviser to the Conservative government, founder of Institute of
International Monetary Research (0500/0900). To join the conversations, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum


REST OF THE WEEK

The U.S. Federal Reserve's Federal Open Market Committee will begin its two-day meeting on
interest rate policy on Tuesday. The Federal Reserve is expected to announce on Wednesday it is
speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate
increases next year as a guard against surging inflation.

U.S. big tech companies kick off their quarterly earnings next week starting with Google and
YouTube-parent Alphabet Inc reporting its second-quarter results on Tuesday. The tech giant is
expected to record a slowdown in revenue growth as its ad business takes a hit amid broader
macro-economic uncertainties and as demand for digital as market cools. On Wednesday, investors
will look out for Meta Platforms Inc's second-quarter earnings. The Facebook and
Instagram-parent is expected to record its first drop in revenue in over three years, hurt by a
slowing market for digital ads globally. Apple Inc will announce its third-quarter earnings
after the bell on Thursday, with investors looking to see if the tech company has been able to
overcome supply problems and production delays. Separately on Tuesday, software major Microsoft
Corp will report fourth-quarter earnings after warning it will take a hit from a stronger
greenback.

On the U.S. economic tap, on Thursday, the Commerce Department in its preliminary estimate is
scheduled to report the gross domestic product grew 0.4% in the second quarter. On Tuesday, the
Conference Board is expected to report the reading for consumer confidence index likely dropped
1.2 points to 97.5 in July. On Friday, the consumer spending data, which accounts for more than
two-thirds of economic activity, is due for release. Consumer spending likely climbed 0.9% in
June after gaining 0.2% in May. Personal income likely remained unchanged at 0.5% in June. The
Commerce Department, on Tuesday, is due to report new home sales likely declined to 666,000
units in June from 696,000 in May. On Wednesday, the agency is likely to report durable goods
likely dropped 0.5% in June, following a 0.8% rise in the month before. On Thursday, the Labor
Department is expected to report initial claims for state unemployment benefits slipped 3,000 to
a seasonally-adjusted 248,000 for the week ended July 23. It is also likely to report continuing
claims for the week ended July 16. 

Visa Inc is scheduled to report its third-quarter earnings after market close on Tuesday. The
company is expected to report a jump in profit as spending momentum outpaces gains in inflation.
Executives could also provide commentary on the outlook for spending for the rest of the year.
Mastercard Inc, another major card issuer, will report its second-quarter earnings on Thursday.
The New York-based company is estimated to see a surge in profit as consumers' financial health
holds out against decades-high inflation. Investors will also parse through the company’s
results for any signs of a slowdown in travel, which accounts for a huge chunk of spending
volumes on Mastercard’s network.

On Thursday, Intel Corp is likely to report a fall in second-quarter revenue and net income
compared to the corresponding quarter last year, in large part due to dwindling sales of
computers where Intel chips go. Analysts will be focused on commentary on demand and any
revision to its earnings forecast. On Wednesday, Qualcomm Inc is expected to report a rise in
third-quarter revenue as its diversification efforts pay off. Investors will look for commentary
on the impact of slowing consumer spending on the smartphone chipmaker's business. 

On Friday, oil major Exxon Mobil Corp is expected to post record breaking second-quarter profits
on strong oil and gas prices and refining margins that reflect global shortages of fuel and the
company's deep cost-cutting during the pandemic. Separately, Chevron Corp is expected to post
another strong quarter on high energy prices, with increase in its Permian production. Analysts
will be looking for updates on the company's Kazakhstan operations and risks over a potential
Russia interference.

Pfizer Inc is due to report second-quarter earnings on Thursday, with investors focused on
performance of its COVID-19 pill Paxlovid and its sales forecast for the year. Focus will also
be on expectations for COVID-19 vaccine sales for next year, any updates on its M&A plans, and
the impact of foreign exchange as well as sky-high inflation to its business. Merck & Co Inc is
also expected to report second-quarter earnings on the same day, with investors looking out for
any impact from a stronger dollar to the company and its full-year forecast. Focus will also be
on Merck's expectations for its COVID-19 pill ahead of an expected rise in cases in the fall
season. AbbVie Inc is expected to report second-quarter earnings on Friday, with investors
focused on demand for its newer treatments Skyrizi and Rinvoq. Investors will also look out for
comments on the impact of a high inflation and a possible recession to its business, which
includes the Botox anti-wrinkle injection, and any comments on forex. Humana Inc is expected to
report an increase in their second-quarter profit on Wednesday, where investors will closely
follow the impact of Omicron-led surge in COVID infections on the health insurer's expenses.
Investors will also be on the lookout for any updates to the company's full-year outlook and
comments on its home health initiatives.

On Wednesday, Boeing Co's second-quarter profit is expected to fall as the company struggles to
produce enough planes amid an industry wide supply chain crisis. The focus will be on the
company's free cash flow and production forecasts for the rest of the year.

On Tuesday, General Electric Co is expected to report a slight fall in second-quarter revenue
and profit, hurt by supply chain disruptions. The focus will be, however, on the forecast for
the rest of the year as the conglomerate prepares to break up into three companies.

Beverage maker Coca-Cola Co is expected to report a rise in second-quarter revenue helped by
higher prices for its sodas, on Tuesday. Investors will be keen to see if the company has seen
any slowdown in demand due to inflation and whether retailers have started to push back against
price hikes.

Procter & Gamble Co is expected to post a rise in fourth-quarter revenue on Friday, boosted by
higher prices and demand for its homecare brands on Friday. Investors will be keen to see if the
company expects to be able to continue to pass through price hikes to retailers as they begin to
see slowing demand due to inflation.

On Thursday, Southwest Airlines Co is expected to report a profit on an adjusted basis in the
second quarter but the focus will be on the cost pressures that is set to hit the airline
industry for the rest of the year.

On Tuesday, industrial giant 3M Co is scheduled to post a second-quarter fall in profit as
waning demand and supply chain snarls continue to pressure the company’s bottom line.  As the
macro environment worsens investors will focus on how the companies will sustain profits in an
environment of rising inflation.

Honeywell International is expected to report a fall in second-quarter revenue and profit as
global supply chain issues offset high travel demand, on Thursday. The company is also expected
to take a hit from rising raw material costs across its different segments.

U.S. agribusiness company Archer-Daniels-Midland Co will report its second-quarter earnings
results on Tuesday, amid global supply chain disruptions and robust demand for food and biofuel
that have sent inflation to the highest in decades. on Wednesday, U.S. agricultural commodities
trader Bunge Ltd is due to report second-quarter earnings amid global supply chain woes and
strong demand for food and fuel that has propelled inflation to the highest in decades. Bunge is
expected to post strong results as margins remained solid and as an accelerating South American
harvest bolstered supplies of crops that it buys, sells, processes and ships around the world.

On Tuesday, United Parcel Service Inc is poised to report a slight rise in its second-quarter
profits helped by strong pricing action and focus on profitable customers even as the volume
decline due tightened consumer spending.

Burger chain McDonald's Corp is expected to post an increase in second-quarter comparable sales
on Tuesday, boosted by higher prices, new product launches and online demand. Investors will
look out for comments on U.S. labor shortages, sales trends and the impact of inflation on its
business.

Mondelez International Inc is expected to post a rise in second-quarter revenue on Tuesday,
boosted higher hikes and steady demand for its chocolates and snacks. Investors will be on the
lookout for comments on supply-chain disruptions, inflationary pressures, further price
increases and impact of inflation on consumer spending. On Thursday, Hershey Co is expected to
beat Wall Street estimates for second-quarter revenue, benefiting from price hikes and robust
demand for its chocolates and candies. Investors will look for comments on inflationary
pressures and price hikes.

Kraft Heinz Co is expected to report a fall in second-quarter revenue on Wednesday, hurt by
slowing demand for its snacks and condiments after pandemic-led rise in demand. Investors will
be on the lookout for comments on supply-chain disruptions, inflationary pressures, further
price increases and impact of inflation on consumer spending.

On Wednesday, Canadian grocery and pharmacy chain Loblaw Cos Ltd is likely to post an increase
in second-quarter revenue on strong demand for cosmetics and over-the-counter medicines and as
consumers cook more at home. Investors will look out for comments on the impact of inflation on
its margins and topline.

On Thursday, Cruise operator Royal Caribbean Cruises Ltd is expected to post a sequential
increase in second-quarter revenue on pent-up demand for leisure travel. Investors will look out
for comments on current booking and pricing trends as well as the impact of inflation and labor
shortages on its business.

Canada's GDP data for May is on the radar on Friday. Statistics Canada is expected to release
country's budget balance data for April on the same day.

Brazil's statistics agency IBGE is scheduled to release consumer prices data in the month to
mid-July on Tuesday. On Friday, its primary budget deficit in May is expected to be 24.501
billion reais, after the country reported a surplus of 38.867 billion reais in April. Brazil's
unemployment rate for June, which rose 9.8% in May, is also due for release on the same day.
Mexico's trade balance and jobless rate data for June are set for release on Wednesday and
Thursday respectively. The country's fiscal balance data for June is due for release on Friday.
Chile's jobless rate and manufacturing output data for June are due for release on Thursday and
Friday respectively.


 (Compiled by Priyal Mahtta in Bengaluru; Editing by Krishna Chandra Eluri)
 ((Priyal.Mahtta@thomsonreuters.com))