What to Watch in the Day Ahead - Wednesday, May 3

NiSource

02/05/2023 19:30

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U.S. Federal Reserve's Federal Open Market Committee (FOMC) is scheduled to announce its
decision on interest rates followed by a statement. 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. (1400/1800)

U.S. ADP National Employment report is scheduled to show private payrolls likely increased by
148,000 jobs in April, after rising 145,000 in March. Separately, the Institute for Supply
Management (ISM) is expected to report its non-manufacturing PMI likely rose to 51.8 in April,
from 51.2 in March. Meanwhile, the S&P Global's final reading of Composite and Services PMI for
April is set for release. Also, the Mortgage Bankers Association's weekly report on the average
30-year fixed contract rate for the week ended April 28 is scheduled for release. 

Qualcomm Inc is expected to report a decline in second-quarter revenue, hurt by weak smartphone
demand.

CVS Health Corp is scheduled to report its first-quarter earnings. Investor focus is likely to
be on demand for prescription drugs, insurance business and the management's commentary on its
acquisitions.

Estee Lauder Companies Inc is expected to post a decline in third-quarter revenue, 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.

Packaged foods maker Kraft Heinz Co is expected to post a rise in first-quarter revenue, helped
by price hikes and resilient demand for its packaged meals and condiments. Investors will be
watching out for company's forecast, comments on current demand trends amid threats of a
recession, pricing, costs and inflation.

Yum! Brands Inc is expected to post a rise in first-quarter same-store sales, boosted by steady
demand at its Taco Bell chains with new menu items at KFC restaurants also bolstering business.
Investors will be watching out for the company's comments on consumer behavior, margins and cost
pressures, and plans on pricing.

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

Global grain trader and processor Bunge Ltd is expected to release first-quarter earnings
results 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
would support profits in 2023, but warned that it may struggle to repeat its record performance
in 2022.

Spirit AeroSystems Holdings Inc is expected to disclose the financial fallout of an ongoing 737
MAX manufacturing issue when the company reports first-quarter results. 

Ford Motor Co CEO Jim Farley is expected to speak at Wall Street Journal conference about the
post-pandemic workforce. 

NiSource Inc is expected to report an increase first-quarter profit as the electric and gas
utility firm is likely to be helped by higher electricity demand. Analysts will be looking for
comments around full-year outlook.

Etsy Inc is expected to post a jump in first-quarter revenue, benefiting from steady demand for
bags, party products and personalized gifts on its online marketplace. Investors will look for
comments on shift in consumer spending, impact from inflation, and any forecast the company
provides.

Massachusetts' highest court will consider whether to revive a state fiduciary duty rule that
was central to an enforcement action securities regulators filed against the online brokerage
Robinhood Markets Inc. Suffolk County Superior Court Judge Michael Ricciuti in Boston last year
sided with Robinhood in a lawsuit it filed after Massachusetts Secretary of State Bill Galvin in
December 2020 accused it of encouraging inexperienced investors to place risky trades. The
judge's decision to invalidate the fiduciary rule knocked out a key part of the case against
Robinhood, which is on hold pending the outcome of Galvin's appeal. 

Host Hotels & Resorts Inc is expected to report a rise in first-quarter profit as demand for
travel remained strong.

Canadian retailer Loblaw Companies Ltd is expected to report a rise in first-quarter revenue,
benefiting from strong demand as consumers shopped more for groceries and medicines. Investors
will watch out for the management's comments on annual outlook, and the impact of
inflation-driven higher costs of production on its profit margins.

Brazil's central bank is expected to keep its Selic benchmark interest rate steady in April.

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 (Compiled by Shreya Sabharwal in Bengaluru; Edited by Shilpi Majumdar)
 ((Shreya.Sabharwal@thomsonreuters.com;))