What to Watch in the Week Ahead and on Tuesday, January 16

Netlist

12/01/2024 19:30

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ON TUESDAY:
Goldman Sachs will report fourth-quarter results, with the bank's profit expected to rise,
helped by strength in trading and investment banking that offset a hit from a write-down tied to
its consumer units.     

Morgan Stanley is expected to report a drop in fourth-quarter profit, with investors watching
closely for executives' outlook for a recovery in investment banking. Analysts will also look
out for the bank's newly appointed CEO, Ted Pick, laying out strategies. 

PNC Financial is expected to post a drop in fourth-quarter profit, hurt by a drop in the
lender's interest income earned off charging customers interest. It is also expected to book
charges related to replenishing a regulator's deposit insurance fund.     

Federal Reserve Board Governor Christopher Waller is scheduled to speak on the economic outlook
before the Brookings Institution. (1100/1600)


REST OF THE WEEK:
On the U.S. economic front, the Commerce Department, on Wednesday, is expected to report retail
sales likely rose 0.4% in December, after a 0.3% rise in November. Excluding automobiles, retail
sales likely gained 0.2% in December after a similar climb in the previous month. Separately, on
the same day, import prices are expected to fall 0.5% in December after depreciating 0.4% in
November. Meanwhile, export prices are likely to fall 0.6% in December, after a dip of 0.9% the
month before. On Thursday, the Labor Department's weekly report is expected to show initial
claims for state unemployment benefits likely rose 5,000 to a seasonally adjusted 207,000 for
the week ending Jan. 13. Meanwhile, continued jobless claims for the week ending Jan. 6 are also
due. On the same day, in a report from the Commerce Department, overall building permits are
expected to rise to 1.475 million units in December from 1.467 million units in the prior month.
Meanwhile, housing starts numbers are likely to drop to 1.439 million units in December from
1.560 million units in November. Separately on Wednesday, a report from the Federal Reserve is
expected to show industrial production likely remained flat in December after adding 0.2% in
November. Manufacturing output for December is also expected to show a flat reading after an
increase of 0.3% in November. Meanwhile, capacity utilization for the industrial sector, a
measure of how fully firms are using their resources, is expected to be at 78.7% in December.
Apart from that, a report by the National Association of Realtors on Friday is expected to show
existing home sales remained unchanged at 3.82 million units in December from the previous
month.

On Wednesday, investment banking and financial services firm Charles Schwab is expected to
report a plunge in fourth-quarter profit due to lower interest and trading income.    

On Wednesday, Federal Reserve Board Governor Michelle Bowman is scheduled to participate in a
discussion, "The Path Forward for Bank Capital Reform," before the U.S. Chamber of Commerce
Protect Main Street Lending Event. On the same day, Federal Reserve Vice Chair for Supervision
Michael Barr is likely to speak on "Cyber Risk" before the 2nd Annual Massachusetts Institute of
Technology/Federal Reserve System Conference on Measuring Cyber Risk in the Financial Services
Sector. Barr is also likely to participate in a discussion on "Bank Regulation" before the
Responsible A.I. Symposium: Advancing a Blueprint for Tech Equity" hosted by the National Fair
Housing Alliance on Friday. Separately, Federal Reserve Bank of New York President John Williams
is expected to give opening remarks before the hybrid event, "An Economy that Works for All:
Measurement Matters," at the Federal Reserve Bank of New York on Wednesday. Furthermore, on
Friday, Federal Reserve Bank of San Francisco President Mary Daly is expected to participate in
a fireside chat before the hybrid event, "A Future Outlook: Innovation & Economic Growth in San
Diego." In addition to that, on Thursday, Federal Reserve Bank of Atlanta President Raphael
Bostic is scheduled to give brief remarks on the economic outlook before the Metro Atlanta
Chamber board of directors meeting. Separately, on the same day, Bostic will also speak on the
2024 economic outlook before the Atlanta Business Chronicle 2024 Economic Outlook lunch.

KeyCorp is expected to report a fall in fourth-quarter profit on Thursday, hurt by a drop in the
income charged off interest payments. On the same day, Truist Financial is also expected to join
rival banks in posting smaller profits as higher funding costs weigh on interest income. 

Discover Financial Services on Wednesday is expected to post a drop in fourth quarter profit on
higher loan loss provisions.          

U.S. Bancorp is expected to report a plunge in fourth-quarter profit on Wednesday as the bank
sees loan growth moderate and sets aside more money for loans that can sour in a tough economy.
It is also expected to book charges related to replenishing a regulator's deposit insurance
fund. Separately, on the same day, Citizens Financial is expected to report a fall in its
fourth-quarter profit as income from interests dipped.      

Oilfield services giant SLB is expected to report a rise in fourth-quarter profit on Friday,
helped by higher demand for oil and gas drilling equipment and services from the international
market. Investors and analysts will look for comments on full-year expectations, contract prices
and macro outlook.

Northern Trust Corp on Thursday is expected to post a rise in fourth-quarter profit benefiting
from an increase in its fee-based income.

Fifth Third Bancorp is expected to report a decline in its fourth-quarter profit due to weaker
interest income on Friday. Separately, State Street is also expected to post a fall in the same
quarter's profit on Friday due to lower net interest revenue at the custodian bank. Meanwhile,
Regions Financial, on the same day, is expected to report a fall in its fourth-quarter profit on
higher loan loss provisions.

Paints and coatings maker PPG Industries is expected to report a rise in fourth-quarter profit
on Wednesday, helped by higher demand for its industrial coatings boosted by growth of
automotive sales and manufacturing in the quarter. Investors and analysts will look out for
comments on full-year growth expectations.

Huntington Bancshares on Friday is expected to report a fall in its fourth-quarter profit on
weak interest income and higher loan loss provisions. 

Computer memory company Netlist will try to convince an East Texas jury that chipmaker Micron
Technology's products infringe four of its patents. Netlist won a $303 million verdict against
Samsung for infringing related patents in the same court last year. Jury selection and the first
day of trial are scheduled for Friday.

On Wednesday, Coinbase will urge a judge in New York to rule against the U.S. Securities and
Exchange Commission in its lawsuit claiming the cryptocurrency exchange broke the law by failing
to register as a securities business.

On the Canadian economic tap, Statistics Canada, on Tuesday, is expected to show the country's
annual inflation rate rose to 3.3% in December from 3.1% in November. On a month-over-month
basis, the consumer price index fell 0.3% in December after rising 0.1% in the prior month.
Separately, on Wednesday, Canada's producer prices data will be on the radar. In addition to
that, the country's retail sales data for November is due on Friday. Retail sales likely
remained flat after rising 0.7% in October.

On the Latin American front, Brazil's retail sales data for November is due on Wednesday. Retail
sales fell 0.3% in October. Separately, Mexico's retail sales data for November will be released
on Friday. The country's retail sales gained 0.8% in October. Meanwhile, Argentina's trade data
for December will be on the radar on Thursday. 


(U.S. markets are closed on Monday, Jan. 15, on account of Martin Luther King, Jr. Day) 


 (Compiled by Kumar Satyam; Editing by Tasim Zahid)
 ((Kumar.Satyam@thomsonreuters.com;))