What to Watch in the Day Ahead - Thursday, May 2
01/05/2024 19:32
(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT) Apple's revenue is expected to decline 5% and would mark the fifth instance of topline drop in the past six quarters as demand for its chief commodity the iPhone as well Mac computers remains weak. Investors will expect commentary on how it plans to revive sales and updates on AI development, which is driving gains at Big Tech peers. Moderna is expected report first-quarter earnings, as it contends with a sharp drop in sales of its COVID-19 vaccine. Investors will focus on the vaccine maker's comments on new contracts for the shots, updates on its other vaccines in development and changes to its' full-year sales forecast On the U.S. economic front, the Commerce Department's Census Bureau data is expected to show that factory orders for March rose 1.6%, following a 1.4% increase in February. A separate report from the Commerce Department is expected to show that international trade deficit likely widened to $69.1 billion in March, from a deficit of $68.9 billion in February. Additionally, the Labor Department’s weekly jobless claims data is likely to show initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 212,000 for the week ended April 27. Meanwhile, the number of people receiving benefits after an initial week of aid likely rose to 1.797 million for the week ending April 20 from 1.781 million in the previous week. A separate report from the Labor Department is scheduled to report that nonfarm productivity likely rose 0.8% in the first quarter after increasing at a rate of 3.2% last quarter. Also, unit labor costs advanced at a rate of 3.3% in the first quarter, after gaining 0.4% in the previous period. Amgen is set to report first-quarter results after markets close. Investors will lookout for the quarterly sales performance from its osteoporosis drug Prolia and rheumatoid arthritis drug Enbrel, updates on full-year outlook, as well as an updated commentary on weight-loss drug data. Health insurer Cigna Group is expected to report first-quarter earnings. Investors will look out for the health insurer's medical costs amid robust demand for medical services and surgeries as well as any updates to its 2024 outlook. Comments around sale of its Medicare Advantage unit and any impact from a cyberattack at rival UnitedHealth Group's technology unit will be of interest. Regeneron is expected to report its first quarter results before markets open. The focus is expected to be on quarterly sales of its eye disease drug Eylea and skin disease drug Dupixent. ConocoPhillips is likely to post a decline in first-quarterly profit. However, investors would be looking towards any commentary on M&A. Coinbase is expected to report a profit in the first quarter as the crypto exchange benefits from strong growth in transaction revenues. Crypto markets have been buoyed by the approval of exchange-traded funds that track the spot price of bitcoin in recent months. The largest digital asset by market cap hit an-time record in the quarter amid frenzied trading. Analyst and investor focus is also expected on updates from the company on its lawsuit against the U.S. Securities and Exchange Commission. New York Stock Exchange-parent Intercontinental Exchange is expected to report a rise in first quarter profit driven by robust trading activity in the energy markets that led to average daily volumes hitting a quarterly record. Analysts and investors are likely to focus on management's outlook for the reopening of the U.S. initial public offering market after a two-year dry spell. Booking Holdings is expected to report a rise in first-quarterly revenue, helped by robust travel demand as consumers increasingly spend on experiences. Investors will be watching for the online travel agency's forecast, its booking levels and expectations for summer travel demand. Separately, online travel platform Expedia is likely to post an increase in quarterly revenue, as demand for travel holds up with more consumers prioritizing spending on experiences like vacations. The company's forecast, its comments on current travel trends and summer bookings will be on top of investors' minds. Illumina is set to report first-quarter results after markets close on May 2. Investors will look out for any updates to the company's annual core business sales outlook amid subdued demand for its genetic testing tools and diagnostics products, as well as commentary on Grail deal after EU antitrust regulators recent nod for divestment of the cancer test maker. Oil and gas firm EOG Resources is expected to report a fall in first-quarter profit, on Wednesday hurt by lower natural gas prices. Investors and analysts will look out for comments on full-year growth expectation and production cuts. Payments processor Block is expected to report its first-quarter earnings. Analysts expect its profit to have jumped, and investors will await more details on its cost-savings plan. Kellanova is expected to report a fall in first-quarter revenue hit by sluggish demand for its Cheez-It crackers and Rice Krispies, which took a hit from higher prices. Investors will look out for volumes, demand, pricing and input costs. Becton Dickinson is expected to give its second-quarter results. Investor focus is expected to be on the performance of its devices which include needles, syringes and drug delivery equipment. Pioneer Natural Resources will report first-quarter earnings before markets open, where investors will focus on impact of lower natural gas prices on quarterly performance, and its pending purchase by Exxon Mobil. CNH Industrial is expected to report a slump in quarterly revenue, as demand for agricultural and construction equipment plateaus from last year's peaks. Investors will be focused on the company's outlook for 2024, its inventories, profit margins and pricing strategy. Auto parts supplier Aptiv is expected to post a higher first-quarter profit and revenue on Wednesday as automakers ramp up production. Animal health company Zoetis to report first-quarter results. Investors will be looking out for comments on demand for its vaccines and medicines for pet animals. Investors will also look for any comments on the company's arthritis drugs for dogs and cats. Baxter International is expected to give its first-quarter results. Investor focus will be on the performance of its medical devices which include dialysis products, IV solutions and infusion pumps. Motorola Solutions is expected to post an 8% increase in revenue in the first quarter, on robust demand for its integrated security solutions. Live Nation Entertainment is expected to post higher first quarter revenue, helped by strong concert demand. Westrock is expected to report fall in first-quarter revenue on lagging demand for its container board and paper packaging goods. Investors will look out for demand, volumes, pricing and raw material costs. U.S.-based rare earths producer MP Materials is expected to swing to a first-quarter loss due to sliding prices of the critical minerals used to build a range of electronics. Regency Centers is expected to post a rise in first-quarter revenue, helped by steady leasing demand from its grocery-anchored shopping centers. Investors will look for comments on rental rates, demand from tenants and annual forecast. Digital Realty is expected to post higher first-quarter revenue, helped by strong demand from clients for its data center services. Federal Realty Investment Trust is expected to post a rise in first-quarter revenue, helped by strong leasing demand at its commercial real estate properties. Investors will look for comments on rental rates, impact on demand from tenants after pull-back on discretionary spending and annual forecast. Kimco Realty is expected to post a rise in first quarter revenue, helped by strong leasing demand at its grocery-anchored shopping centers. Investors will watch out for comments on occupancy rates for the year, as well as increases in rents. Pinnacle West Capital is expected to post a rise in first-quarterly revenue. Investors would be looking forward to comments on A.I. Pipeline operator Targa Resources is expected to post first-quarter income, helped by higher transport volumes of natural gas liquids through its system. On the Canadian economic front, Canada's trade surplus is likely to widen to C$1.50 billion in March, following a surplus of C$1.39 billion from February. The country's imports and exports data are also due for release on the same day. Canada's biggest oil producer Canadian Natural Resources is expected to post lower first-quarter profit compared to the same period in 2023. Investors and analysts will await production updates and capital return plans. Air Canada will report its first quarter earnings and is expected to report a higher revenue and a narrower loss compared with previous year. Investors will be looking for comments on business travel rebound and international travel rebound. In Latin American countries, Brazil's S&P Global's manufacturing PMI numbers for the month of April are due. Separately, the country is likely to show that current account likely widened to a deficit of $3.1 billion in March, from a deficit of $4.373 billion the previous month. Additionally Brazil is expected to release its foreign direct investment data, which is likely to increase to $6.850 billion in March, from a gain of $5.012 billion in February. Mexico's S&P Global’s manufacturing PMI for April will be on tap for the day. In addition, Chile's Monthly Economic Activity Indicator (Imacec) is scheduled to report a rise of 2.0% in March, from after reporting a gain of 4.5% in the month before. (Compiled by Anjana Jayakrishnan Nair in Bengaluru.) ((AnjanaJayakrishnan.Nair@thomsonreuters.com;))