What to Watch for the Week Ahead and on Monday, May 1

MercadoLibre

28/04/2023 19:30

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ON MONDAY:

Jane Fraser, CEO of Citi, Charlie Scharf, CEO of Wells Fargo, and Robin Vince, CEO of BNY
Mellon, are scheduled to join the Milken conference in Beverly Hills. The topics they will
discuss in their respective panels have not yet been disclosed.

Live Nation and its Ticketmaster LLC is scheduled to defend themselves at a week-long jury trial
from claims that their e-ticketing system infringes two patents owned by patent licensor Global
eTicket Exchange Ltd.

On the U.S. economic front, the Institute for Supply Management (ISM) is likely to report that
its manufacturing PMI likely rose to 46.7 in April, from 46.3 in March. The Commerce Department
is likely to release data that construction spending ticked up 0.1% in March, after decreasing
0.1% in the month before.

The S&P Global is expected to release the reading of Canada's Manufacturing Purchasing Managers'
Index (PMI) data on the same day.

Brazil's Ministry of Development, Industry, Trade and Services is expected to report the
country's trade balance data for April. Chile's IMACEC economic activity index for March is also
scheduled for release.


REST OF THE WEEK:

U.S. Federal Reserve's Federal Open Market Committee (FOMC) is scheduled to announces its
decision on interest rates followed by a statement on Wednesday. The Fed is expected to deliver
a final 25-basis-point interest rate increase and then hold rates steady for the rest of 2023,
according to economists in a Reuters poll. 
    
On Thursday, Apple Inc is expected to report a decline in revenue in its second fiscal quarter,
weighed by demand weakness due to a challenging economy. Investors will look for comments on its
core iPhone business and growth in its key markets such as United States and China. Advanced
Micro Devices is expected to report a drop in first-quarter revenue on Tuesday, hurt by a slump
in personal computer market and slowing data center business. Qualcomm Inc is likely to report a
decline in second-quarter revenue on Wednesday, hurt by weak smartphone demand.

A rather busier week can be expected on the U.S. economic front, kicking off with ADP National
employment scheduled to report on Wednesday that private payrolls increased by 143,000 jobs in
April, after rising 145,000 in March. The Labor Department's closely watched employment report
on Friday is expected to show nonfarm payrolls increased by 180,000 in April, after surging
236,000 in the prior month. Private payrolls are expected to gain 150,000 in April, after rising
189,000 in the previous month. Unemployment rate is likely to rise to 3.6% in April. The report
is also expected to show that average hourly earnings remained flat at 0.3% on a monthly basis
in April. A separate report from the Labor Department is expected on Thursday, to report data on
initial claims for state unemployment benefits likely rose to 243,000 in the week ended April
29, from 230,000 in the previous week. The Labor Department is scheduled to release a report on
Thursday, which is expected to show an annualized acceleration of unit labor costs at a rate of
4.7% for the first quarter. The Commerce Department is set to release a report on Tuesday,
indicating that factory orders probably increased by 1.3% in March, after declining by 0.7% in
the previous month. The Labor Department is scheduled to release its Job Openings and Labor
Turnover Survey, or JOLTS report, for March on the same day, showing a decline to 9.683 million
from 9.931 million in the previous month. 

On Friday, Fed Board Governor Lisa Cook is expected to give commencement address before the 2023
Spring Convocation of Michigan State University at East lansing, Michigan (1300/1700). St. Louis
Fed's President James Bullard is also scheduled to participate in fireside chat on the U.S.
economy and monetary policy before an Economic Club of Minnesota luncheon at Minneapolis,
Minnesota (1300/1700)
  
Starbucks Corp is expected to report a rise in second-quarter same-store sales on Tuesday, as
its new menu items and service improvements continue to draw Americans, while a recovery in
China further boosts sales. The company's expectations for 2023, comments on margins, expansion
plans and any updates on the unionization of its workers will be on top of investors' minds. 
    
Packaged foods maker Kraft Heinz is expected to post a fall in first-quarter revenue and profit
on Wednesday, hurt by slowing consumer demand and higher costs. Investors will be watching out
for company's forecast, comments on current demand trends amid threats of a recession, pricing,
costs and inflation. Pringles owner Kellogg Co is expected to post a rise in first-quarter
revenue and profit on Thursday, helped by price hikes and strong demand for its cereals.
Investors will be watching for company's forecast, comments on current demand trends amid
threats of a recession, pricing, higher costs and inflation.

Uber Technologies is expected to report a rise in first-quarter revenue on Tuesday, gaining from
post-COVID reopenings and return of passenger traffic. DoorDash Inc is expected to post a jump
in first-quarter revenue on Thursday, helped by steady demand for groceries, pet-food items as
well as at-home orders from consumers despite higher prices and inflation. Investors will look
for comments on shift in consumer spending, impact from inflation, how new verticals are
performing and any forecast the company provides.

On Tuesday, Pfizer Inc is expected to report first-quarter earnings before markets open.
Investors will watch out for the COVID-19 products sales during the quarter and any changes to
the drugmaker's full-year outlook. Focus will also be on comments around any updates on the
Seagen acquisition and anticipated product launches for 2023. Moderna Inc is scheduled to report
its first-quarter earnings on Thursday. Investor focus is expected to be on the company's
pipeline, including the respiratory syncytial virus (RSV) vaccine, as revenue from its hugely
successful COVID-19 vaccine decline. Regeneron Pharmaceuticals Inc is also scheduled to report
its first-quarter earnings before markets open on Thursday. Investors are expected to look
closely at sales for its eye drug Eylea, and eczema drug Dupixent. Updates on high dose version
of Eylea will also be carefully watched. Incyte Corp is likely to report first-quarter earnings
on Tuesday before markets open. Investors and analysts will focus on any changes to its full
year forecast and comments on sales of its skin treatment, Opzelura, and blood disorder drug,
Jakafi.

CVS Health Corp is scheduled to report its first-quarter earnings on Wednesday. Investor focus
is likely to be on demand for prescription drugs, insurance business and the management's
commentary on its acquisitions. Cigna is scheduled to report its first-quarter earnings before
market opens on Friday. Investor focus is likely to be on the insurer's commentary on medical
costs amid a recovery in surgical procedures, as well as the performance of its pharmacy benefit
management business. On Tuesday, Zimmer Biomet Holdings Inc is likely to report first-quarter
earnings before markets open. Investors and analysts will focus on any changes to its full-year
forecast and comments on the medical device maker's new surgical robot and smart knee implant.
Becton Dickinson and Co is scheduled to report second-quarter earnings before markets open on
Thursday. Investors and analysts will focus on any changes to its full year forecast and
comments on  supply chain, staffing issues, inflation, and recovery in non-urgent procedures.

U.S. lithium producer Albemarle Corp is set to post first-quarter on Wednesday results amid
concerns about Chile's lithium nationalization plans and its own bid for Australia's Liontown.
Gold miner Barrick Gold Corp is likely to post first-quarter results and answer likely questions
around M&A potentials on the same day.

Estee Lauder Companies Inc is expected to post a decline in third-quarter revenue on Wednesday,
hurt by a strong dollar, slow recovery in major market China and softening demand for its
cosmetics and beauty products. Investors will look for comments on demand in China, excess
inventory, supply chain disruptions, retail inventory orders and inflationary pressures on
consumer spending.

Global grain trader and processor Bunge Ltd is expected to release first-quarter earnings
results on Wednesday amid strong global demand for crops and supply concerns due to the ongoing
war in Ukraine and an historic drought in Argentina. The company has said favorable market
factors will support profits in 2023, but warned that it may struggle to repeat its record
performance in 2022.

South American e-commerce giant MercadoLibre Inc is scheduled to publish its first-quarter
results on Wednesday.

On Thursday, Paramount Global Inc is expected to post a rise in first-quarter revenue, driven by
more paying subscribers flocking to its streaming platform. AMC Entertainment Holdings Inc is
expected to post a rise in first-quarter revenue on Friday, driven by more movie-goers flocking
to its theater.
    
A trial is expected to begin in Delaware federal court on the U.S. government's claims that
Gilead's blockbuster HIV drugs Truvada for PrEP and Descovy for PrEP infringe its patents. The
U.S. has asked for over $1 billion in damages, though these damages may be offset by a ruling
for Gilead in the U.S. Court of Federal Claims on its allegations that the CDC breached
agreements with the company.

Carlyle Group is expected to report its first-quarter earnings on Thursday following the hiring
of Harvey Schwartz as the private equity firm's substantive chief executive.

Cryptocurrency exchange Coinbase Global Inc is scheduled to report its first-quarter results on
Thursday. The company's earnings metrics will be a key gauge of investor interest in the digital
asset space, which has regained some favor after several high-profile blowups last year.

Holiday Inn owner InterContinental Hotels Group PLC is likely to report first-quarter revenue
per room above pre-pandemic levels on Friday, aided by the reopening of China post COVID-19
lockdowns. Investors will seek out comments on China's recovery to 2020 levels and plans to
mitigate rising costs. Forward bookings and plans for the coronation weekend will be of interest
as well.

A couple of economic data can be expected from Canada this week. On Thursday, Statistics Canada
is expected to release the country's trade balance data for March, along with total export and
imports. Canadian economic activity as measure by the Ivey Purchasing Managers Index (PMI) data
is also scheduled for the same day. On Friday, Statistics Canada is expected to report that the
country's unemployment rate would likely remain flat. 

On the Latin American economic schedule, Brazil's S&P Global Manufacturing PMI and Services PMI
for April is scheduled for release on Tuesday and Thursday, respectively. Similarly Mexico's S&P
Global Manufacturing PMI for April is expected to report on Tuesday. The IPC-FIPE index, a
leading indicator of Brazil's consumer prices, for April is likely to report on Thursday. On
Thursday, the national statistics agency is set to report Mexico's consumer confidence index for
April. The country's seasonally adjusted unemployment rate is also scheduled for release on the
same day. 
    

 (Compiled by Sandhra Mariam Sam in Bengaluru; Edited by Shilpi Majumdar)
 ((SandhraMariam.Sam@thomsonreuters.com;))