What to Watch in the Week Ahead and on Monday, July 24

PDC Energy

21/07/2023 19:56

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ON MONDAY:    
S&P Global is expected to show its July flash services sector PMI fell to 54.1 from 54.4 in
June. The closely watched survey's flash manufacturing PMI likely rose to 46.4 in July from 46.3
in the previous month.

Whirlpool Corp is expected to report a decline in second-quarter earnings as it faces a
challenging macro environment and sluggish demand from rising inflation. Investors will be
looking for commentary on forecast for the year and impact of a rising interest rate
environment.

Domino's Pizza Inc is due to post a rise in second-quarter revenue, benefiting from higher
prices as well as new promotional offers on its menu items from budget-conscious customers.
Investors will lookout for comments on demand trends, delivery business, new partnership with
Uber, margin recovery and any forecast that the pizza-maker provides.

Cadence Design Systems Inc is scheduled to post a 14% increase in quarterly revenue on strong
demand for chip design tools. Investors await comments on management on how it is tackling a
tough economic environment.

NXP Semiconductors NV is expected to report a drop a quarterly revenue as demand across broader
markets including consumer electronics remains weak.

JPMorgan Chase & Co is scheduled to ask a federal judge in Manhattan to dismiss the U.S. Virgin
Islands lawsuit seeking to hold the bank liable for ignoring sex trafficking by the disgraced
late financier Jeffrey Epstein, a former client.

Mexican statistics agency INEGI is expected to report that the annual headline inflation was at
4.77% in the first 15 days of July. Core inflation is forecast to have slid to 6.73%
year-on-year.  In the first half of July, consumer prices were forecast to have risen 0.27%
compared with the previous two-week period, while the core index likely rose 0.22%.

REST OF THE WEEK:
Investors will keenly watch out for the U.S. Federal Reserve's monetary policy decision at the
end of a two-day meeting on Wednesday. The Federal Open Market Committee (FOMC) is likely to
raise its benchmark overnight interest rate by 25 basis points to the 5.25%-5.50% range. 

Quarterly results from Big Tech companies will likely present a mixed picture. On Tuesday,
Alphabet Inc is expected to report an over 4% rise in second-quarter revenue, as advertising
sales remains subdued and the cloud platform growth drops to under 25%. Analysts will look for
comments on the outlook for the advertising-focused businesses, AI initiatives and the cloud
unit. On the same day, Microsoft Corp is expected to report about a 7% increase in
fourth-quarter revenue, continuing the trend of single-digit growth, as weakness continues in
its key cloud and personal computing divisions. Investors will look for comments on how
artificial intelligence contributed to the revenue, upside expected in the coming quarters and
further integrations expected. On Wednesday, Meta Platforms Inc is expected to report an 8% rise
in second-quarter revenue on the back of a recovery in the digital advertising market. Analysts
will look for comments on its new platform Threads, including expected new features,
monetization plan, and whether Meta factors Threads in its earnings forecast.

A rather busier week can be expected on the U.S. economic front, kicking off with the Commerce
Department, on Thursday, set to report that the gross domestic product increased at a 1.7%
annualized rate last quarter, in its advance estimate of second-quarter GDP growth. On Friday,
the Commerce Department is expected to release personal consumption expenditures (PCE) price
index figures for June. Excluding the volatile food and energy components, the PCE price index
likely increased by 0.2% in June, after rising 0.3% in the month before. In the 12 months
through June, the so-called core PCE price index likely rose 4.2%. Consumer spending, which
accounts for more than two-thirds of U.S. economic activity, likely shot up 0.4% in June,
following a 0.1% gain in May.  Separately, the University of Michigan's final July reading of
consumer sentiment is expected to remain unchanged at 72.6. On Tuesday, the Conference Board is
expected to show its consumer confidence index likely rose to 111.5 in July from 109.7 in June.
Separately, on Wednesday, the Commerce Department is expected to report new home sales likely
fell to a seasonally adjusted annual rate of 727,000 units in June, from 763,000 units in the
month before. On Thursday, the Commerce Department is expected to report orders for durable
goods likely rose 0.7% in June, after advancing 1.8% in the previous month. On the same day, the
Labor Department is expected to report the initial claims for state unemployment benefits
increased 7,000 to a seasonally adjusted 235,000 for the week ended July 22. The National
Association of Realtors is expected to report on Thursday that its Pending Home Sales Index,
based on signed contracts, dropped 0.6% last month.

Exxon Mobil Corp, on Friday, is expected to post earnings of about $2.04 per share, less than
half the year-ago net, according to analysts' consensus estimate, on lower natural gas and
refining margins. Year-ago results were bolstered by sky-high oil and gas prices on market
turmoil from Russia's invasion of Ukraine. Also, Chevron Corp, the second-largest U.S. oil
producer, is expected to report June-quarter profit fell by nearly half from a year ago, on
weaker oil and gas prices and declining oil refining margins. Results are the first since it
disclosed a deal to acquire shale producer PDC Energy.

On Thursday, Intel Corp is expected to report a decline in quarterly revenue due to a sluggish
PC market recovery.

McDonald's Corp is likely to report a rise in second-quarter same-store sales on Thursday, as
its cheap menu items and promotions pull customers despite sticky inflation. Investors will
watch for the company's expectations for 2023, its comments on margins, cost inflation and
current demand levels.

Visa Inc is expected to report a rise in quarterly profit on Tuesday as the world's largest
payments processor's customers remain resilient in the face of economic pressures. Analysts and
investors will watch for executive comments on consumer spending growth and a potential tailwind
from China reopening. Meanwhile, Mastercard Inc is scheduled to report its second-quarter
results on Thursday. Investors will analyze the company's spending volumes to gauge consumers'
financial health, and if fears of a downturn have started to weigh on demand for big-ticket
purchases.

On Friday, Procter & Gamble Co is expected to post a rise in fourth-quarter revenue, boosted by
higher prices and resilient demand for its products like Tide detergent as well as Pantene
shampoo. Investors will look for the company's comments on strong dollar, further price
increases, easing cost pressures, recovery in China and a hit to demand due to higher prices.

Boeing Co reports second-quarter earnings on Wednesday, outlining demand and production trends
and updating on the supply-chain challenges faced by the industry.

Coca-Cola Co is expected to post a rise in second-quarter revenue on Wednesday, benefiting from
steady demand for its sodas as well as higher prices. Investors will look for comments on
further price increases, easing costs and lower volumes due to price hikes.

Ford Motor Co will report second-quarter results on Thursday, outlining what demanding and
pricing for cars looks like.

Verizon Communications Inc is expected to post a loss in wireless phone subscribers when it
reports its second-quarter earnings on Tuesday. Investors will be looking to the company for
commentary on the company's exposure to the lead-cables issue raised by the Wall Street Journal.

U.S. automaker General Motors Co will report second-quarter results on Tuesday, outlining what
the demand and pricing environment for cars looks like.

AT&T Inc is expected to post a smaller increase in postpaid phone net additions when it reports
its second-quarter earnings on Wednesday. Investors will be looking to the company for comments
on the company's exposure and liabilities, if any, to the lead-cables issue raised by the Wall
Street Journal.

Snap Inc, owner of messaging app Snapchat, will report its second quarter earnings on Tuesday
after market close.

Federal Reserve Board is scheduled to hold an open meeting to discuss proposed rules to
implement the Basel III endgame agreement for large banks and adjustments to the capital
surcharge for the largest and most complex banks (1300 /1700).

On Tuesday, Biogen Inc will report second-quarter earnings, with investors focusing on any
comments around the sales expectations for Alzheimer's drug Leqembi this year, which recently
gained a standard approval in the United States. Investors will also look for any comments on
future deals as its multiple sclerosis drugs face increased competition.

General Electric Co is expected to report a quarterly profit on Tuesday, but focus will be on
the company's persistent supply-chain challenges. Analysts are also looking for an update on its
renewables business.

Thermo Fisher Scientific Inc is expected to report second-quarter earnings before markets open
on Wednesday. Investors will focus on comments on demand trends from its biotech clients, any
changes to its annual earnings forecast, and updates to the medical equipment maker's strategy
for mergers and acquisitions.

T-Mobile US Inc is expected to post a jump in wireless subscriber additions when it reports its
second-quarter results on Thursday, boosted by customers choosing its plans in a
competition-heavy market.

AbbVie Inc will report its second-quarter earnings on Thursday. Investor focus is expected to be
on the revenue erosion of blockbuster arthritis drug Humira due to the entry of biosimilars, as
well as sales of newer drugs Skyrizi and Rinvoq.

The U.S. railroad operator Union Pacific Corp is expected to report higher revenue and profit in
the second quarter on Wednesday, as the company benefited from higher shipment volumes and price
hikes. Comments on coal business, hiring slowdown would be of interest.

Bristol Myers Squibb Co is expected to report its second-quarter earnings before markets open on
Thursday. Investors will focus on sales of cancer drug Revlimid which faces competition from
cheaper version, and top-selling therapy Opdivo. Focus will also be on sales expectations for
newer products like cancer therapy Opdualag and heart disease drug Camzyos as well as comments
over drug prices.

Southwest Airlines Co on Thursday is expected to report a fall in second-quarter profit on
mounting cost pressures and additional investments in infrastructure.

3M Co is expected to report a decline in earnings on Tuesday, on lower revenues hurt by slow
demand for consumer electronics. Investors will be looking for commentary on forecast for the
year and impact of litigation expenses.

Global grain trader and crop processor Archer-Daniels-Midland Co is due to report second-quarter
results on Tuesday as U.S. grain export volumes have slumped and global oilseed processing
margins have narrowed.

Dow Inc is expected to post a fall in second-quarter earnings on Tuesday as it navigates
challenging macroeconomic conditions and faces demand concerns.

Kimberly-Clark Corp is expected to post a rise in second-quarter revenue on Tuesday, helped by
higher prices and steady demand for its products like Kleenex tissues as well as Huggies diaper.
Investors will look for comments on further price hikes, supply chain costs, impact to demand
due to price increases and shift in consumer spending due to inflation.

Texas Instruments Inc is expected to report a decline in second- quarterly revenue due to
weakening demand across most of its end-markets.

On Wednesday, ebay Inc is expected to report a rise in second-quarter revenue as inflation-hit
consumers gravitated to its refurbished good.

Health insurer Centene Corp is set to report second quarter results on Friday. Investors will
lookout for commentary on rising medical costs flagged by larger peers like UnitedHealth Group.

Colgate-Palmolive Co is expected to post a rise in second-quarter revenue helped by consistent
price hikes and steady demand for its essential products. Investors will look for comments on
further price increases, higher costs, pet food business and an impact to volumes due to price
hikes.

GE Healthcare Technologies Inc is expected to report its second quarter earnings on Tuesday.
Investor would be looking for color on 2023 forecast, along with commentary on uptake of medical
devices as surgical procedure show signs of recovery and supply chains challenges.

Royal Caribbean Cruises Ltd is expected to post a rise in second-quarter revenue on Thursday,
helped by pent-up demand for cruises as consumers shift to spending more on experiences and
services as well as higher ticket prices. Investors will look for comments on demand trends,
impact from inflation and fuel prices on margins and any forecast that the cruise operator
provides.

Chipotle Mexican Grill Inc is expected to post a rise in second-quarter revenue on Wednesday, as
Americans continued to order its burritos and rice bowls despite higher prices. Investors will
keep an eye out for the company's comments on margins and cost inflation and current traffic
trends.

Church & Dwight Co Inc is expected to post a rise in second-quarter revenue benefiting from
higher prices as well as steady demand for its products including liquid detergents and
mouthwash. Investors will be on the lookout for comments regarding the company's forecast,
margin recovery, any shift in consumer spending and impact from still-high inflation.

On Friday, Statistics Canada is expected to report the country's economy likely expanded 0.4% in
May, after remaining flat in the previous month.

Brazil's statistics agency IBGE is scheduled to release inflation data for the month to mid-July
on Tuesday. The country's jobless rate data for May is expected on Friday. Chile's central bank
is expected to announce its benchmark interest rate decision on Friday. The country's
unemployment rate data for June is due on Thursday. 

 (Compiled by Jerin Tom Joshy in Bengaluru; Edited by Shilpi Majumdar)
 ((Jerin.Joshy@thomsonreuters.com;))