What to Watch in the Day Ahead - Thursday, May 30

Nordson

29/05/2024 19:29

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The U.S. Commerce Department's Bureau of Economic Analysis will release its second estimate of
first-quarter gross domestic product, which is expected show the economy likely grew at a 1.3%
annualized rate, down from the previously reported 1.6% pace. On the same day, the Labor
Department is scheduled to report initial claims for state unemployment benefits likely rose to
218,000 in the week ended May 25 from 215,000 in the prior week. The number of people receiving
benefits after an initial week of aid, or continuing claims, likely increased to a seasonally
adjusted 1.797 million during the week ending May 18.
 
Dell Technologies is expected to post an increase in its first-quarter revenue, helped by
growing demand for its AI-powered servers that also support Nvidia's graphics processing units.
Investors will be looking for commentary on the recovering PC market, demand for AI PCs and AI
server bookings as enterprise customers are still grappling with sticky inflation amid
macroeconomic uncertainty. Brokerage Bernstein said on Thursday that it believes AI server
bookings will be "the single most important KPI (key performance indicator) from the earnings
call."
 
Federal Reserve Bank of New York President John Williams will speak before a hybrid Signature
Luncheon event hosted by the Economic Club of New York. (1205/1605) Separately, Federal Reserve
Bank of Dallas President Lorie Logan is set to speak before the Borderplex Alliance
Distinguished Speaker Series. (1700/2100)
 
Best Buy is expected to post a drop in first-quarter revenue due to subdued demand for
electronic devices it retails. Consumers in the United States continue to defer discretionary
purchases in the face of sticky inflation.
 
Costco Wholesale is expected to post a rise in third-quarter revenue, helped by steady consumer
demand for its groceries. Investors will look for comments on demand, the impact of gasoline
prices and annual forecasts.
 
Dollar General is expected to post a rise in first-quarter revenue as consumers rallied to grab
its cheaper groceries amid sticky inflation. Investors will watch for comments on consumer
demand, margin recovery, and any forecast update that the retailer provides.
 
Goldman Sachs President John Waldron and Bank of America CEO Brian Moynihan are expected to
speak at the Bernstein Strategic Decisions Conference.
 
Birkenstock is expected to post revenue growth for the second quarter, benefiting from strong
demand for its high-end closed-toe shoes and sandals defying an overall slowdown in the luxury
market. Investors will look out for comments on the company’s expansion plans, supply chain
costs, direct-to-consumer demand and an update in annual forecasts.
 
Gap is expected to report a slight increase in first-quarter revenue, likely helped by strong
demand at its Old Navy and namesake brands, as well as on-trend fashion marketing. Investors
will be keen to gauge shopper appetite for apparel and accessories purchases in an uncertain
economy and trends for wide-leg denim, pants and trendy tops.
 
Nordstrom is expected to post a slight rise in first-quarter revenue as strained consumer
spending in the discretionary categories continues to weigh on the retailer’s sales. Investors
will look out for comments on the founding family’s take-private offer, updates on annual
forecasts and improved spending on apparel and other higher-margin goods.
 
Chipmaker Marvell Technology is expected to report a fall in first-quarter revenue as weakness
in the consumer markets, along with inventory corrections, hurt prospects for new chip orders.
 
Zscaler is expected to report a rise in revenue in the third-quarter, helped by an increase in
demand for cybersecurity solutions amid high profile hacks and rising online threats.
 
Skippy peanut butter maker Hormel Foods is expected to post a decline in second-quarter revenue,
hurt by high-priced meat products and ready-to-eat meals. Investors will look for comments on
pricing actions, demand, and annual forecasts.
 
Royal Bank Canada, the country's biggest bank, is expected to report a rise in second-quarter
profit benefiting from cost cutting efforts and the acquisition of HSBC's domestic unit.
Investors will also look for management's first updates after the lender closed its acquisition
of HSBC Canada at the end of March.
 
Mexico's national statistics agency is set to report the country's seasonally adjusted
unemployment rate was likely at 2.6% in April, up from 2.3% in March. Chile's statistics agency
INE is also expected to report the country's jobless rate, which was likely at 8.5% in April,
down from 8.7% in March.
 
LIVECHAT – REUTERS GLOBAL MARKETS FORUM 
    Simon Harvey, head of FXanalysis at Monex Europe, will discuss European Central Bank's rate
cut pathand its implications for the euro. (0700/1100) To join the conversation, email here
 

 (Compiled by Nachiket Tekawade in Bengaluru; Editing by Ravi Prakash Kumar)
 ((Nachiket.Tekawade@thomsonreuters.com;))