What to Watch in the Day Ahead - Thursday, August 29

Marathon Oil

28/08/2024 19:30

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On the U.S. economic calendar, the Commerce Department’s Bureau of Economic Analysis is
scheduled to release the second estimate for the second-quarter gross domestic product data. The
economy is forecast to grow 2.8% in the quarter, matching the previous estimate. Separately, the
Commerce Department is expected to report preliminary data for core PCE price index, which
likely grew 2.9% in the second quarter. Furthermore, a report from the Labor Department is
likely to show that initial claims for state unemployment benefits remained unchanged at 232,000
for the week ended August 24. The number of people receiving benefits after an initial week of
aid probably rose 7,000 to a seasonally adjusted 1.870 million during the week ending Aug. 17.
 
Federal Reserve Bank of Atlanta President Raphael Bostic is expected to give a presentation on
"Introduction to the Federal Reserve and an Economic Outlook" before a Georgia Tech Scheller
College of Business Management of Financial Institutions class in Atlanta. (1530 /1930)
 
Best Buy is expected to report a drop in second-quarter same-store sales, as consumers in the
United States remain cautious about purchasing pricier electronics and gadgets. Investors will
watch out for comments on consumer sentiment ahead of the back-to-school and holiday shopping
seasons.
 
Discount store operator Dollar General is expected to post a rise in second-quarter revenue,
helped by steady demand for its groceries and essentials. Investors will look out for comments
on demand, impact of retail shrink trends, inventory levels, and annual forecasts.
 
Dell Technologies is expected to report higher second-quarter revenue, helped by demand for its
AI-powered servers. Investors will be looking for commentary on whether higher costs to build
these servers is continuing to affect the company's margins, as the pricing remains competitive
in the market with rivals trying to grab a share of the server market.
 
Marathon Oil shareholders will vote on its proposed sale to ConocoPhillips, an all-stock deal
that values the Houston-based oil company at about $16 billion. The vote also includes a
non-binding referendum on golden parachute pay packages for the top five Marathon Oil executives
totaling $113 million.
 
Cosmetics retailer Ulta Beauty is expected to post a rise in second-quarter revenue on resilient
demand for beauty and skincare products.
 
Jack Daniel's maker Brown Forman is expected to post a decline in first-quarter revenue, hurt by
sluggish demand for its higher-priced spirits and bourbon whiskeys. Investors will look for
comments on demand, pricing actions, impact of rising input costs and annual forecasts.
 
German sandal maker Birkenstock is expected to post revenue growth for the third quarter as it
benefits from customers seeking premium and in-trend footwear. Investors will look out for
comments on the company's plan to increase prices, expansion details, supply chain costs,
direct-to-consumer demand, wholesale partnerships and an update in annual forecasts.
 
Gap is expected to post a rise in second-quarter revenue benefitting from strong demand for its
namesake and Old Navy brands as improved product offerings attract customers. Investors will
look out for comments on Banana Republic's performance, inventory, new strategies under CEO
Richard Dickson and supply chain-related statements.
 
Tech solutions provider Autodesk is expected to report a rise in second-quarter revenue as it
benefits from robust demand for its design software across fields including construction,
architecture and media. The firm has been under pressure from activist investor Starboard Value
to make changes, including at upper management levels to improve financial performance.
 
Chipmaker Marvell Technology is expected to post a fall in second-quarter revenue as it
continues to see a decline in its enterprise networking and carrier markets.
 
Canadian Imperial Bank of Commerce's third-quarter profit is expected to jump, driven by higher
interest income and lower loan loss provisions.
 
A Statistics Canada report is expected to show that Canada's current account deficit likely
widened to C$5.85 billion in the second quarter, following a C$5.37 billion deficit in the
previous period.
 
Lululemon Athletica is expected to post a rise in second-quarter revenue, benefiting from demand
for its pricier athleisure apparel. Investors will look out for comments on holiday season
demand and inventory planning as well as comments on North America demand.
 
Latin American investors will look out for Brazil's IGP-M inflation index for August. The index
is forecast to rise 0.46%, following a 0.61% increase in the month prior.  Additionally, the
country's producer price index for July is also scheduled for release. Separately, Chile's
statistics agency INE data is likely to show that the unemployment rate hit 8.5% in the quarter
through July, after rising 8.3% in the previous month.
 

 (Compiled by Malini K; Editing by Vijay Kishore)
 ((Malini.K@thomsonreuters.com;))