What to Watch in the Day Ahead - Thursday, July 25

Masco

24/07/2024 19:32

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The U.S. Commerce Department is scheduled to publish its advance estimate of second-quarter GDP
growth, which is expected to show a pick-up in activity at a 2.0% annualized rate from the
January-March quarter's 1.4% pace. Separately, durable goods are expected to have gained 0.3% in
June after rising 0.1% in May. Orders for durable goods, excluding transport, likely rose 0.2%
in June after falling 0.1% in the month before. Meanwhile, initial claims for state unemployment
benefits possibly fell to a seasonally adjusted 238,000 for the week ending July 20 from 243,000
the week before. 

American Airlines is expected to report a fall in profit when it posts its second-quarter
earnings. Investors will seek an update on the company's unit revenue strategy and demand
trends. Separately, Southwest Airlines is also expected to post a drop in its second-quarter
profit. Investors will watch for comments on Boeing deliveries, the company's response to
Elliott investment management and travel demand.
        
U.S. Railroad operator Union Pacific is expected to report a second-quarter profit above Wall
Street estimates as price hikes implemented by the U.S. railroad operator partly offset freight
volume declines, particularly in coal.

When AbbVie reports its second-quarter earnings, investors are expected to focus on the sales
erosion of the company's drug, Humira, due to competition from biosimilars and sales of its
drugs, Rinvoq and Skyrizi. 

Royal Caribbean Group is expected to post a rise in second-quarter revenue on robust cruising
demand and higher prices. Investors will watch out for comments on costs and occupancy levels
for the rest of the year.

Refiner Valero Energy is expected to report a decline in second-quarter earnings compared to
last year, hurt by weaker margins. Investors will be looking forward to any commentary about the
impact of the TMX pipeline on distillate and gasoline demand.

Toymaker Hasbro is expected to post a drop in second-quarter revenue, hurt by a volume decline
in its Consumer Products segment and slowing growth in its "Monopoly Go!" mobile gaming revenue.
Investors will look out for comments on recovery in toy demand, upcoming releases, and
cost-saving measures.

Digital Realty Trust is expected to post higher second-quarter revenue, which will likely be
driven by strong demand for its data center services.

Keurig Dr Pepper is expected to post a rise in second-quarter revenue, mainly driven by steady
demand for its sodas in the United States. Investors will look out for comments about the health
of the country's consumers, the impact of weight loss drugs, if any, and new product
innovations.

Canada's Loblaw is expected to post a rise in second-quarter revenue, helped by strong demand
for groceries and other essentials.

Deckers Outdoor is expected to post a rise in first-quarter revenue, benefiting from steady
demand for its premium UGG boots and Hoka sneakers. Investors will eye comments on consumer
demand trends and any update on the full-year forecasts.

Farming supplies retailer Tractor Supply is expected to post a rise in second-quarter revenue,
helped by steady demand for discretionary and agricultural products. Investors will look for
comments on demand, pricing action, and annual forecasts.

Juniper Networks is expected to post a lower second-quarter revenue, hurt by weak spending by
its cloud computing and enterprise clients in an uncertain economy.

Home-building products maker Masco is expected to post a decline in second-quarter revenue,
owing to weaker demand for its high-priced plumbing and home decor items. Investors will look
for comments on demand, pricing action and annual forecasts.

In Latin America, Brazil's statistics agency is slated to report mid-July inflation, as measured
by the IPCA-15 index, which likely rose 0.23%, easing from 0.39% registered a month earlier. The
country's annual inflation is estimated to have increased by 4.38% in mid-July, compared to
4.06% in the previous period. Separately, the country's central bank is expected to post a
current account deficit of $3 billion for June, compared to a $3.4 billion deficit posted in
May. Foreign direct investment is forecast to have risen $3.3 billion in June, up from $3
billion reported in the month before.

LIVECHAT – REUTERS GLOBAL MARKETS FORUM
Stefan Gerlach, chief economist at EFG Bank in Zurich and former Deputy Governor of the Central
Bank of Ireland, discusses his outlook for ECB's monetary policy path. (0430/0830) To join the
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 (Reporting by Ananya Roy in Bengaluru; Editing by Tasim Zahid)
 ((Ananya.Roy@thomsonreuters.com;))