What to Watch in the Week Ahead and on Monday, August 16
13/08/2021 19:41
(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)
ON MONDAY
Federal Reserve Bank of New York is expected to release manufacturing data for August. It is
likely to show a reading of 29 following a reading of 43 in July. (0830/1230)
Roblox Corp is expected to report second-quarter results. The company benefited from a surge in
consumer spending for its games "Jailbreak" and "MeepCity" during the pandemic.
On the Canadian calendar, Statistics Canada is scheduled to release manufacturing sales data for
June. It decreased by 0.6% in May. Wholesale trade data for June is also due, it increased by
0.5% in May.
Peru's statistics agency INEI is scheduled to release data for gross domestic product.
LIVECHAT-REUTERS GLOBAL MARKETS FORUM
Marko Kaasila, Senior VP of Product Management at the QT Company, discusses how supply chain
crunches are impacting the tech sector and other industries. (0930/1330) To join the
conversation, click here https://refini.tv/2P8N0Wp
REST OF THE WEEK
On the U.S. economic tap, monthly retail sales data for June is expected to be released on
Tuesday. It is likely to have fallen to 0.2% after a rise of 0.6% in July. Excluding motor
vehicles and parts, retail sales would probably show a rise of 0.2% in July after a rise of 1.3%
in the previous month. On the same day, industrial production output for July is due. It is
likely to have increased 0.5%, after a 0.4% rise in June. Separately, business inventories will
probably see a rise to 0.8% in June from 0.5% in May. On Wednesday, the homebuilder confidence
for August, as measured by NAHB Housing Market index, is likely to remain unchanged from the
previous month at a reading of 80. On the same day, July data for housing starts is due. It is
likely to fall to 1.602 million units from 1.643 million units in the previous month. Meanwhile,
on the the same day, building permits data for June is also scheduled for release. It is
expected to rise to 1.610 million units from 1.594 million units in June. The Labor department
is scheduled to release initial claims for state unemployment benefits for the week ended Aug.
14, on Thursday. The claims stood at 375,000 in the previous week. The Philadelphia Federal
Reserve's Business Index for August is also expected on the same day.
Minutes of the U.S. Federal Reserve's July meeting will be in focus on Wednesday for cues on the
central bank's stimulus tapering. Separately, the Fed Chairman Jerome Powell, on Tuesday, is
scheduled to discuss the work of the Federal Reserve and economic education before virtual town
hall meeting with educators and students across the country.
On Tuesday, Walmart is expected to post a rise is quarterly U.S. same store sales on the back of
strong back-to-school demand for everything from apparel to backpacks. Coming off a year of
robust sales due to consumers stockpiling to prepare for lockdowns, Walmart is also expected to
face some margin pressure due to industry wide supply chain and labor issues. Analysts and
investors will be looking out for any commentary on the impact of the Delta variant on its
business as well as on the retail landscape.
Doughnut chain Krispy Kreme Inc is expected to post its first set of quarterly results, on
Tuesday, since its market debut earlier this year. Investors will look out for its comments on
inflation and current levels of demand.
Home Depot is also expected to report on Tuesday, a rise in quarterly same-store sales boosted
by demand from builders, contractors and handymen getting back to housing projects. Investors
will look out for comments from the company on the state of home improvement demand from
do-it-yourself consumers as the Delta variant threatens a return of some virus restrictions.
On Wednesday, the big box retailer, Target Corp is expected to post a rise in quarterly
same-store sales benefiting from a stronger back-to-school season compared to last year. Target
is also expected to see sales gains from its partnership with beauty retailer Ulta. Investors
will be looking out for any commentary on the impact of the Delta variant on its business as
well as its supply chain.
Lowe's Cos Inc is expected to report, on Wednesday, a dip in quarterly same-store sales after
benefiting from a pandemic rush for home improvement products last year. Wall Street will also
look out for what effects the Delta variant could have on the company's business and whether
rising costs will hit profit margins.
Nvidia Corp is also expected to report on Wednesday, a rise in quarterly revenue, as demand for
its graphic chips used in gaming devices and data centers remained strong during the pandemic.
On Thursday, Department store chain Macy's Inc is expected to report a jump in second-quarter
sales as customers return to stores, aided by the roll out of vaccines. However, investors will
be more focused on the potential impact of the fast spreading Delta variant and increasing cost
pressures as the crucial holiday shopping season approaches.
Applied Materials is expected to post a rise in third-quarter revenue on Thursday, thanks to
continued demand for its chip manufacturing tools which would help navigate through the global
shortage in the industry.
Estee Lauder Cos Inc, on Thursday, is expected to post an increase in quarterly revenue, as
demand for cosmetics and makeup products bounces back following the easing of pandemic-led
restrictions in the United States. Investors will look out for outlook and its comments on
inflation as well as the impact of the Delta variant on its business.
On Friday, Deere & Co is expected to release its third-quarter earnings. It is likely to surge
on buoyant demand for farm and construction machines. The focus, however, will be on the
company's ability to fill in orders amid parts and labor shortages.
On Wednesday, companies that provide equipment and services to drill and manage wells beneath
the ocean surface bring their wares to the Offshore Technology Conference 2021 in Houston.
On Thursday, Tesla CEO Elon Musk will share more details of the company's artificial
intelligence work on 'AI Day'. Musk has talked for some time about how Tesla plans to use
advanced artificial intelligence to enable automated driving and other capabilities.
On the Canadian front, Canadian Mortgage and Housing Corporation is scheduled to release
annualized housing starts data on Tuesday, for July. It stood at a rate of 282,100 units in
June. On Wednesday, the country's annualized and monthly inflation rates are due. They
previously showed a rise of 3.1% and 0.3% respectively. On the same day, core CPI data for
year-on-year and monthly are also due. On Friday, retail sales data for June is scheduled for
release. It is likely to show a rise of 4.4% from a fall of 2.1% in May.
Argentina's yearly data for economic activity is due on Thursday. The stats agency is also
scheduled to release the country's trade balance data for July, on the same day. It showed a
surplus of 1,067 million in July.
(Compiled by Pooja Kesavan; Editing by Shailesh Kuber)
((Pooja.Theikkattu@thomsonreuters.com;))