What to Watch in the Week Ahead and on Monday, April 10

Netlist

06/04/2023 19:30

(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)
    
ON MONDAY

Federal Reserve Bank of New York President John Williams is expected to participate in a
moderated discussion organized by the Economics Review at NYU Kimmel Center, New York.
(1615/2015)

On the U.S. economic front, the Commerce Department is expected to release wholesale inventories
data for February.

JPMorgan Chase & Co and Deutsche Bank AG are expected to formally respond to lawsuits seeking to
hold them liable over their dealings with the late financier Jeffrey Epstein. Both have been
sued in proposed class actions by women who claim they were victims of Epstein's abuse, and
JPMorgan has been sued by the U.S. Virgin Islands, where Epstein had a home.  


REST OF THE WEEK
JPMorgan Chase and Co is expected to post a rise in first-quarter profit on Friday, as a rapid
rise in interest rates boosts the consumer-facing unit of the biggest U.S. bank by assets.
Investors are expected to focus on executive commentary around the outlook of the economy,
broader fallout from the banking crisis and consumer strength in the face of a potential
recession. Citigroup Inc will also post its first-quarter results on Friday. Analysts expect a
drop in profit and hope to question company executives on deposits and capital amid worries of a
liquidity crisis since a string of bank collapses sent tremors through the sector. On the same
day, Wells Fargo & Co is likely to report a jump in first-quarter profit, boosted by gains in
the lender's interest income in the wake of hefty interest rate hikes. Investors and analysts
are expected to look closely at the bank's balance sheet, particularly deposits, to gauge the
full impact of the crisis.
    
On Wednesday, the Federal Open Market Committee issues minutes from its March 21-22 meeting.

On the U.S. economic calendar, the Labor Department, on Wednesday, is expected to show the
Consumer Price Index (CPI) likely climbed 0.3% in March, after gaining 0.4% in the previous
month. The CPI is expected to have risen 5.2% in the 12 months leading up to March. Excluding
volatile food and energy components, the so-called core CPI is likely to increase 0.4% in March,
after increasing 0.5% in February. The core CPI likely rose 5.6% in the year to March, following
a 5.5% rise on the same basis in the previous month. In a separate report from the Labor
Department, due on Friday, import prices are likely to fall 0.2% in March. Export prices likely
fell 0.2% in March, after rising 0.2% in the previous month. In another report due on Thursday,
the Producer Prices Index (PPI) for final demand is expected to rise 0.1% in March, after
falling 0.1 in February. The PPI likely grew 3.1% in the year to March, after rising 4.6% on the
same basis in February. Excluding volatile food, energy and trade services, producer prices rose
0.2% in March. The core PPI grew 3.3% in the 12 months through March, after rising 4.4% on the
same basis in February. On the same day, the Labor Department is scheduled to report jobless
claims and continued jobless claims data. On Friday, the Commerce Department is expected to
report retail sales likely fell 0.4% in March. The overall industrial production likely
increased 0.2% in March, after remaining flat in February. Manufacturing capacity utilization
likely remained unchanged at 79% in March. The business inventories likely rose 0.3% in
February, after falling 0.1% in January.

BlackRock Inc is expected to post a drop in its first-quarter profit on Friday. Investors are
going to look closely at assets under management and total inflows and outflows for the quarter
and executive commentary around the outlook of the economy, especially after the banking crisis.

On Thursday, Delta Air Lines Inc is expected to report lower first-quarter profit due to a
run-up in operating costs following its new pilot contract deal. Investor focus, however, will
be on the elasticity of consumer demand amid worsening economic outlook.

Federal Deposit Insurance Corporation (FDIC) Vice Chairman Travis Hill will deliver his first
policy address, on Wednesday, since being confirmed to the regulator's board on the FDIC's role
and response to recent bank failures at the Bipartisan Policy Center. Following his remarks,
Hill will take questions in a moderated discussion.

Federal Reserve Bank of Chicago President Austan Goolsbee is likely to speak before a hybrid
Economic Club of Chicago Forum Luncheon, on Tuesday, at Columbus Drive, Chicago. On the same
day, Federal Reserve Bank of Philadelphia President Patrick Harker is scheduled to speak on the
economic outlook before the Wharton Initiative on Financial Policy and Regulation at the Wharton
School of the University of Pennsylvania, Philadelphia. Federal Reserve Bank of Minneapolis
President Neel Kashkari is also scheduled to participate in a moderated townhall event before
the Montana State University College of Business and Entrepreneurship Town Hall on Tuesday. On
Wednesday, Federal Reserve Bank of Richmond President Thomas Barkin is expected to make opening
remarks at Investing in Rural America 2023, hosted by the Federal Reserve Bank of Richmond. 

UnitedHealth Group Inc will kickstart the first-quarter earnings season for health insurers on
Friday. The investors will look for the company's commentary on the Medicaid and Optum business,
along with any changes to the 2023 forecast.

Moderna Inc will host its annual Vaccines Day on Tuesday, where investors will look for updates
on the company's COVID-19 vaccine and its pricing as it moves to a commercial market as well as
its other mRNA-based vaccines under development.

ConocoPhillips, the largest U.S. independent oil producer, will hold its annual investor day on
Wednesday and discuss its capital spending priorities, outlook for its businesses and cash flow.
The company last year became the second-largest oil producer in the Permian Basin, after
Chevron, through acquisition of Shell and Concho Resources shale oil operations.

On Thursday, Jury selection begins ahead of trial in Dominion Voting Systems Corp's $1.6 billion
defamation lawsuit against Fox Corp over its coverage of debunked election-rigging claims. The
trial begins April 17 in Delaware Superior Court before Judge Eric Davis.

On Tuesday, Reuters reporters and editors tracking the Federal Reserve take questions on the
economics, politics, trade matters and rates policies facing America's central bank and others
whose decisions drive markets day in and day out.

On Friday, Samsung Electronics Co Ltd will defend itself at an East Texas jury trial against
claims that its "memory modules" for high-performance computing infringe five patents owned by
Netlist Inc, which also makes computer-memory products.

The Bank of Canada's rate decision is due on Wednesday.

On the Latin American economic front, Brazil's inflation data for March is likely to be released
on Tuesday. Separately, the country's retail sales data for January is scheduled to be released
on Wednesday. Mexico's industrial production data for February is due to be released on Tuesday.
    
  
(U.S. markets are closed on Friday, April 7, on account of Good Friday)

 (Compiled by Kumar Satyam; Edited by Shilpi Majumdar)
 ((Kumar.Satyam@thomsonreuters.com;))