What to Watch in the Day Ahead - Tuesday, May 2
01/05/2023 19:30
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U.S. Federal Reserve's Federal Open Market Committee (FOMC) is scheduled to begin its two-day
meeting on interest rates. The Fed is expected to deliver a final 25-basis-point interest rate
increase and then hold rates steady for the rest of 2023, according to economists in a Reuters
poll.
The U.S. Commerce Department is set to release a report indicating that factory orders probably
increased by 1.1% in March, after declining by 0.7% in the previous month. The Labor Department
is scheduled to release its Job Openings and Labor Turnover Survey, or JOLTS report, for March,
showing a decline in jobs to 9.775 million from 9.931 million in the previous month.
Pfizer Inc is expected to report first-quarter earnings before markets open. Investors will
watch out for the COVID-19 products sales during the quarter and any changes to the drugmaker's
full-year outlook. Focus will also be on comments around any updates on the Seagen Inc
acquisition and anticipated product launches for 2023.
Starbucks Corp is expected to report a rise in second-quarter same-store sales as its new menu
items and service improvements continue to draw Americans, while a recovery in China further
boosts sales. The company's expectations for 2023, comments on margins, expansion plans and any
updates on the unionization of its workers will be on top of investors' minds.
Advanced Micro Devices Inc is expected to report a drop in first-quarter revenue, hurt by a
slump in personal computer market and slowing data center business.
Uber Technologies Inc is expected to report a rise in first-quarter revenue, gaining from
post-COVID reopenings and return of passenger traffic.
Marriott International Inc is expected to report a rise in first-quarter profit as pent-up
desire to travel fueled demand and boosted occupancy levels.
Restaurant Brands International Inc is expected to post a rise in first-quarter revenue, boosted
by higher prices and strong demand at its Tim Hortons and Burger King chains. Investors will
look for comments on demand in China, raw material and labor costs as well as a shift in
consumer spending.
Chesapeake Energy Corp is expected to report a fall in first-quarter profit as gas prices have
receded from last year. Investors will look at commentary around drilling rigs and asset sales.
DuPont de Nemours Inc is expected to post lower first-quarter profit as the chemicals maker
navigated subdued demand and cost pressure. Investors would be looking for comments around
full-year outlook and "forever chemical" trial.
Match Group Inc is set to report a marginal drop in quarterly revenue as a tough economy pinches
consumers' wallets. Analysts will be looking for insights on how consumer spending is holding
up.
AmerisourceBergen Corp is expected to report second-quarter earnings before markets open.
Investors will likely focus on any additional commentary regarding diversification of its
specialty platform, including the most recent acquisition of minority stake in OneOncology.
Clorox Co is expected to post a rise in third-quarter revenue banking on price hikes that helped
it offset a slowdown in demand for its cleaning products and disinfectants. Investors will look
for comments on shift in consumer spending, impact from inflation, cost-saving initiatives, any
further layoffs and any forecast that the company provides.
U.S. mall operator Simon Property Group Inc is expected to post a rise in first-quarter revenue
as tenant demand and occupancy trends remains stable. Investors will look for comments from the
company on impact from inflation, any shift in consumer spending, development activities and any
forecast the company provides.
A trial is set to begin in Delaware federal court on the U.S. government's claims that Gilead
Sciences Inc's blockbuster HIV drugs Truvada for PrEP and Descovy for PrEP infringe its patents.
The U.S. has asked for over $1 billion in damages, though these damages may be offset by a
ruling for Gilead in the U.S. Court of Federal Claims on its allegations that the CDC breached
agreements with the company. A jury trial on the government's claims will be followed by a bench
trial on some Gilead defenses, and the proceedings are set to take 6 days in total.
Food distributor Sysco Corp is expected to post a fall in third-quarter revenue, hurt by softer
demand for its seafood and imported foods as consumers grapple with rising prices. Investors
will be watching out for company's forecast, comments on current demand trends amid threats of a
recession, inventory mix, higher costs and inflation.
Incyte Corp is likely to report first-quarter earnings before markets open. Investors and
analysts will focus on any changes to its full-year forecast and comments on sales of its skin
treatment, Opzelura, and blood disorder drug, Jakafi.
Zimmer Biomet Holdings Inc is likely to report first-quarter earnings before markets open.
Investors and analysts will focus on any changes to its full-year forecast and comments on the
medical device maker's new surgical robot and smart knee implant.
Coors Light parent Molson Coors Beverage Co is expected to report a rise in first-quarter
revenue, benefiting from resilient demand for its mainstream and economical beers. Investors
will watch out for the management's comments on annual outlook as well as the impact of
inflation-driven higher costs of materials, energy, and transportation on its margins.
On the Latin American economic schedule, Brazil's S&P Global Manufacturing PMI for April is
scheduled for release. Similarly, Mexico's S&P Global Manufacturing PMI for April is set for
release. Chile's IMACEC economic activity index for March is also due.
(Compiled by Shreya Sabharwal in Bengaluru; Edited by Shilpi Majumdar)
((Shreya.Sabharwal@thomsonreuters.com;))