What to Watch in the Week Ahead and on Monday, January 30

Pentair

27/01/2023 19:30

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ON MONDAY
U.S. President Joe Biden is scheduled to travel to Baltimore to discuss how Bipartisan
Infrastructure Law funding will replace the 150-year old Baltimore and Potomac Tunnel to address
bottleneck for commuters on Northeast Corridor between Washington and New Jersey. 
The U.S. International Trade Commission (ITC) is set to issue a decision on whether to ban
imports of a wide range of Peloton Interactive Inc, Lululemon Athletica Inc and iFit fitness
devices with video-streaming capabilities that have been accused of infringing Dish Network's
patents. An ITC judge preliminarily found that the devices infringed in September.
A court-appointed examiner is expected to release a report into the marketing practices of
Celsius Network Ltd, a crypto lender that filed for bankruptcy after pausing customer
withdrawals, and a determination if the company was a Ponzi scheme.
Chile's unemployment rate data for December is scheduled for release. The country's jobless rate
hit 7.9% in November. Brazil's budget and Mexico's fiscal balance figures for December are due.
REST OF THE WEEK
The U.S. Federal Reserve after its two-day meeting on Wednesday is expected to announce that it
is speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate
increases next year as a guard against surging inflation.
On the U.S. economic calendar, the Labor Department's closely watched employment report is
scheduled for release on Friday. Nonfarm payrolls likely increased by 185,000 jobs in January,
compared with a rise of 223,000 jobs in the month before. Unemployment rate likely gained 3.6%
in January, following a 3.5% increase in December. The ADP National Employment report on
Wednesday is expected to show private payrolls likely increased by 170,000 jobs in January. Job
openings likely fell to 10.200 million in December from 10.458 million in the previous month,
the Labor Department is set to report on Wednesday in its monthly Job Openings and Labor
Turnover Survey, or JOLTS report. On Tuesday, the Employment Cost Index, the broadest measure of
labor costs, likely rose 1.1% in the fourth quarter, after increasing 1.2% in the previous
quarter. The Labor Department on Thursday is expected to report initial claims for state
unemployment benefits likely increased 14,000 to a seasonally adjusted 200,000 in the week ended
Jan. 28. The Conference Board on Tuesday is expected to report its consumer confidence index
increased to 109 in January from 108.3 in December. On Thursday, the Commerce Department is
expected to report factory orders likely rose 2.3% in December after dropping 1.8% in November.
The Commerce Department on Wednesday is expected to report construction spending likely fell
0.1% in December, after climbing 0.2% in November. On Friday, the Institute for Supply
Management is expected to report its non-manufacturing PMI likely climbed to 50.3 in January
from 49.6 in December.
Apple Inc is expected to report a fall in first-quarter revenue for the first time in four years
on Thursday, hurt by production delays in China and weakening demand. Investors will also watch
for management's comments on current demand for its products, including its higher-priced iPhone
models that faces supply challenges. 
On Thursday, Google's parent Alphabet Inc is expected to report its worst fourth-quarter growth
in six years as its key businesses — cloud and digital advertising — struggle in a challenging
macro environment. Investors will also watch for the company's comments on the Department of
Justice's second antitrust suit. Also, Amazon.com Inc is expected to report a rise in
fourth-quarter revenue on Thursday, driven by demand for its cloud services and as more people
shopped on its e-commerce platform during the holidays.
Exxon Mobil Corp is expected to report fourth-quarter and full-year earnings on Tuesday. The
largest U.S. oil producer is forecast to post a nearly $57 billion profit, the most in its
history, according to Refinitiv consensus data.
U.S. drugmaker Pfizer Inc will report fourth-quarter earnings before markets open on Tuesday.
Investors will watch out for the sales of its COVID-19 pill Paxlovid and vaccine Comirnaty
during the quarter and full-year outlook. Focus will also be on comments around expectations for
COVID-19 vaccine and pill sales in 2023, and the impact of foreign exchange to its business.
Bristol-Myers Squibb Co is expected to report its fourth-quarter earnings on Thursday, with
investors looking to focus on any comments over impact from the Inflation Reduction Act,
expected drug price increases/inflationary pressures and its sales of drugs such as Revlimid,
Opdivo and Eliquis.
General Motors Co and Ford Motor Co are expected to report strong profit for 2022 on Tuesday and
Thursday, respectively, powered by premium-priced pickup trucks and sports utility vehicles. But
the Detroit rivals must convince investors that last year's profit formula can keep working when
costs for EV batteries are rising, high interest rates are cutting consumer purchasing power and
Tesla Inc is slashing prices.
On Tuesday, McDonald's Corp is expected to report a rise in fourth-quarter comparable sales,
benefiting from higher menu prices and strong demand from consumers reeling under high inflation
looking for value-oriented meals. Investors will look out for comments about labor issues,
supply chain disruptions, impact of a strong dollar and potential slowdown in demand at key
markets such as Europe.
Industrial conglomerate Honeywell International Inc is expected to post a rise in its
fourth-quarter profit and sales on Thursday, helped by strong demand for aircraft parts.
Electronic Arts Inc is expected to report a fall in third-quarter revenue on Tuesday, as the
"FIFA" publisher struggles with rising dollar and to keep gamers hooked following a pandemic
slowdown.
T-Mobile US Inc is expected to report fourth-quarter results on Wednesday, where the carrier is
expected to post a slight drop in revenue. The results will be a wrap to big 3 telcos' earnings,
with analysts and investors focused on the company's promotional strategy and prices in a
challenging economic environment. The company reported 927,000 postpaid phone additions in the
fourth quarter, the highest compared to rivals. The recent 37 million accounts data breach and
its financial impact will also be in focus.
New York Stock Exchange-owner Intercontinental Exchange Inc is expected to report a decline in
fourth-quarter earnings on Thursday, as rising interest rates created headwinds for the
company's mortgage origination business, and energy and financial futures volumes fell. The
company may give details on the fallout from a recent technology glitch at the NYSE that led to
market confusion and erroneous prices for 251 securities.
Estee Lauder Companies Inc is expected to post a decline in second-quarter revenue on Thursday,
hurt by persistent lockdowns in major market China due to COVID-19, weighing on sales of its
makeup and cosmetic brands. Investors will lookout for comments on China reopening, excess
inventory, supply chain disruptions, impact of a strong dollar and inflationary pressures on
consumer spending.
Harley-Davidson Inc on Thursday is expected to report a rise in fourth-quarter revenue, helped
by sales of its higher-margin touring and cruiser motorcycles.
Hershey Co is expected to report a rise in fourth-quarter sales on Thursday, aided by holiday
demand for candies and chocolates, as well as an increase in prices. Analysts will be on the
lookout for comments from the company on how price hikes have affected demand, and expectations
for subsiding cost inflation in 2023.
Boeing Co employees and executives are set to attend the delivery of the final 747 jet at their
plant in Everett, Washington.
On Tuesday, homebuilder PulteGroup Inc is expected to post a rise in its fourth-quarter profit
and sales, helped by higher prices.
Pentair Plc, that provides water treatment solutions to industries, is expected to report a fall
in fourth-quarter profit on Tuesday, amid an ongoing industry-wide consolidation on the back of
mounting economic worries.
C.H. Robinson Worldwide Inc on Wednesday is expected to report a fall in fourth-quarter profit
and revenue as slowing demand and price declines pressure volumes.
On Thursday, Canada Goose Holdings Inc is expected to post a rise in third-quarter revenue,
benefiting from steady demand for its luxurious jackets and parkas from well-to-do consumers who
are feeling a smaller pinch from effects of inflation. Investors will watch out for comments on
shift in consumer behavior, return to growth in China and any forecast that the company
provides.
Statistics Canada on Tuesday is expected to report the country's economy likely grew 0.1% in
November. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) data for January
is scheduled for release on Wednesday. Canada's building permits data for December is due on
Thursday. 
Mexico's gross domestic product data for the fourth quarter is scheduled for release on Tuesday.
The S&P Global Mexico manufacturing PMI and Brazil's manufacturing PMI data for January are due
on Wednesday. Brazil's producer prices data and industrial output figures for December are
scheduled for release on Wednesday and Friday, respectively. Mexico's consumer confidence data
for January is on the tap on Friday.
 (Compiled by Nidhi C Sai in Bengaluru; Edited by Shilpi Majumdar)
 ((Nidhi.CSai@thomsonreuters.com))