What to Watch in the Day Ahead - Thursday, Aug 3
02/08/2023 19:30
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Apple Inc is expected to release third-quarter results, with investors focused on sales of
iPhones. Investors will be listening closely for any comments on AI strategy.
Amazon.com Inc is expected to report an over 8% rise in second-quarter revenue, aided by a
recovery in the advertising and e-commerce businesses and offset by weakness in the cloud unit
Amazon Web Services. Analysts will look for comments on the retail demand environment.
The Labor Department is expected to report the initial claims for state unemployment benefits
increased 6,000 to a seasonally adjusted 227,000 for the week ended July 29. The claims report
is also expected to show that continued jobless claims likely jumped to 1.700 million for the
week ended July 22 from 1.690 million in the prior week. Separately, the Commerce Department is
expected to report factory orders likely increased 2.2% in June, after a 0.3% gain in May. In a
separate report, the department is also set to release June's data for durable goods. Also, the
Institute for Supply Management (ISM) is expected to report its non-manufacturing PMI likely
dropped to 53 in July from 53.9 in June. Meanwhile, the S&P Global's final reading of composite
and services PMI for July is set for release. In another report, the Labor Department is
expected to show, preliminary unit labor costs likely accelerated at a rate of 2.6% in the
second quarter.
Moderna Inc is scheduled to report second-quarter earnings. Investor focus is expected on sales
of the company's COVID-19 vaccines, the outlook for it, as well as management commentary on its
upcoming product pipeline. Separately, Gilead Sciences Inc reports second-quarter profit, with
Wall Street expectations for higher HIV drug sales and lower sales of COVID antiviral Veklury.
Hasbro Inc is expected to post a decline in second-quarter revenue, hit by a slowdown in the toy
industry and inventory adjustment by retailers. Investors will look for comments on industry
demand, expenses, price hikes and retail inventory levels.
The Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to speak on "Recession
Revisited" before the Montgomery County Chamber of Commerce. (0830/1230)
Largest U.S. independent oil producer ConocoPhillips is expected to report per share profit of
$2.03, down from $3.91 a year ago in the second quarter, according to Refinitiv, on cooler oil
and gas prices. Separately, the largest U.S. LNG exporter, Cheniere Energy Inc, to release its
second-quarter earnings results and host a conference call for investors and analysts.
Airbnb Inc is expected to post a rise in second-quarter profit and revenue as demand for
vacation rentals remain.
Amgen Inc, which is facing Federal Trade Commission delays to its planned acquisition of Horizon
Therapeutics, reports its second-quarter profit.
Lithium producer Livent Corp, which is on track to merge with rival Allkem later this year, is
set to post second-quarter results. Separately, MP Materials Corp, the rare earths miner working
to develop its own refining facilities in California to wean its dependence off Chinese rivals,
is set to post second-quarter results.
Regeneron Pharmaceuticals Inc is expected to report second-quarter earnings. The investors would
look for comments on sales of its eye drug Eylea and the recent FDA's unfavorable decision on
the higher dose of the drug in patients. Any change to the full-year earnings forecast would
also be watched out for.
Corteva Inc is expected to report a rise in second-quarter profit as farmers use more seeds
during the planting season.
Becton Dickinson and Co will report its third-quarter earnings before market opens. Investors
are likely to focus on its quarterly performance after a sector wide trend of recovery in
non-urgent surgical procedures that are expected to boost demand for its surgical equipment.
Analysts will also be looking out for revenue performance in its life sciences segment, which
sells diagnostic devices, after a slump in demand for COVID-19 test kits.
U.S. oil producer EOG Resources Inc is expected to report a slump in second-quarter profit as
commodity prices have scaled back compared to last year. Investors would be looking forward to
their commentary on demand and rig count for the second half of this year.
Motorola Solutions Inc is expected to raise its annual revenue forecast and post higher
second-quarter revenue compared with $2.14 billion a year ago as the customer demand for its
products and services soared with considerable growth in its products and systems integration
segment followed by software and services driven by acquisitions and successful partnerships.
Westrock Co is expected to post a drop in third-quarter sales as softer demand for its paper and
packagings drags sales volumes. Investors will be on the lookout for comments on the impact of
higher input costs on the company's margins.
Regency Centers Corp is expected to post a rise in second-quarter, helped by strong leasing
demand from a diverse set of retailers. Investors will lookout for comments on higher rental
costs, occupancy, impact due to interest rates and anything related to annual forecasts.
Teleflex Inc will report its second-quarter earnings before market opens. Investors are likely
to focus on the company's commentary related to its recent $600 million deal to expand its
urinary and reproductive health portfolio. Investors will also lookout for performance of its
medical devices amid an uptick in non-urgent surgical procedures and easing staffing shortages
at hospitals following a decline in COVID-19 cases that have boosted sales for medical device
makers.
Ball Corp is expected to report a decline in second-quarter revenue as sales volumes for its
aluminum packaging such as beverage cans drop due to inflationary pressures. Investors will
watch out for comments on the company's inventory levels and impact of retail pricing on its
operations.
Stryker Corp is set to report second-quarter earnings. Investors will lookout for demand for the
company's surgical devices after a rebound in elective surgical procedures that were put off due
to the pandemic.
Cybersecurity firm Gen Digital Inc is expected to post higher first-quarter revenue compared
with $708 million a year ago as demand for its products rise through direct paid customers and
customers who get solutions through partners in a tense cyber security environment.
Henrik Fisker, CEO of electric-vehicle maker Fisker Inc, is set to speak with Reuters on the
sidelines of a showcase of its EV line up, including Ocean SUV that it has recently started
delivering and its much-awaited Alaska pickup truck.
Canada Goose Holdings Inc is expected to show an increase in first-quarter revenue, as demand
for its luxury parkas from wealthy shoppers hold strong. Investors will be watching out for the
company's forecasts, and its comments on China recovery and any signs of slowdown in the U.S.
LIVECHAT - REUTERS GLOBAL MARKETS FORUM
Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, is expected to speak on Fitch's
downgrade of U.S. Treasuries, its impact on the market and demand for future issuance, and
Japan's recent tweak of its yield curve control policy. (1100/1500) To join the conversation,
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(Compiled by Kumar Satyam; Edited by Shilpi Majumdar)
((Kumar.Satyam@thomsonreuters.com;))