What to Watch in the Week Ahead and on Monday, July 31
28/07/2023 19:31
(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 The Chicago purchasing managers' index (PMI) is scheduled for release and is likely to deliver a reading of 43 in July, up from 41.5 in the previous month. The world's largest aircraft lessor Aercap Holdings NV, is expected to report a 9% increase in second-quarter revenue to $1.821 billion, thanks to the sharp recovery in travel demand and tight supply of available aircraft that is boosting lease rates. Western Digital Corp is expected to report a drop in fourth-quarter revenue hurt by a supply glut crisis in the chip industry. Tenet Healthcare Corp is set to report second-quarter results. Investors will lookout for performance across its outpatient service business as hospital operators benefit from a rebound in non-urgent medical procedures such as hip and knee replacements that were put off due to the pandemic. Energizer Holdings Inc and Walmart Inc are expected to seek a dismissal of three proposed class actions by consumers and retailers accusing them of conspiring to raise the prices of disposable batteries. The lawsuits are in San Francisco federal court. Chile's INE statistics agency is expected to release manufacturing output figures for June. The manufacturing output fell 1.2% in the previous month. REST OF THE WEEK Apple Inc is expected to release third-quarter results on Thursday, 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 on Thursday, 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. On the U.S. economic calendar, on Tuesday, the Institute for Supply Management (ISM) is expected to report manufacturing PMI likely rose to 46.8 in July from 46.0 in the previous month. The ISM survey's measure of prices paid by manufacturers is also expected on the same day. The Labor Department's closely watched employment report on Friday is expected to show non-farm payrolls increased to 200,000 jobs in July, after surging to 209,000 jobs in the prior month. Unemployment rate is likely to rise to 3.6% in July. Private payrolls are expected to gain 175,000 in July, after rising 149,000 in the month of June. The report is also expected to show that average hourly earnings rose to 0.3% on a monthly basis in July. Separately, 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 on Thursday. On the same day, 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, on Wednesday, the ADP National employment is scheduled to report private payrolls likely increased by 188,000 jobs in July, after jumping by 497,000 jobs in June. Also, the Mortgage Bankers Association's weekly report on the average 30-year fixed contract rate for the week ended July 28 is scheduled for release on the same day. On Thursday, The Commerce Department is expected to report factory orders likely increased 2.3% in June, after a 0.3% gain in May. Separately, the Labor Department is expected to show, preliminary unit labor costs likely accelerated at a rate of 2.6% in the second quarter on the same day. In another report on Tuesday, the Commerce Department is expected to show construction spending likely rose 0.6% in June, after gaining 0.9% in May. Also, S&P Global is scheduled to release the final reading of the manufacturing PMI index for the month of July on the same day. On Tuesday itself, the Labor Department is scheduled to release its Job Openings and Labor Turnover Survey, or JOLTS report, for June. The report is likely to show 9.620 million job openings in June, down from 9.824 million in the previous month. Meanwhile, on Thursday, the S&P Global's final reading of Composite and Services PMI for July is set for release. Separately, on the same day June's data for durable goods is set for release. Chip designer Advanced Micro Devices Inc is expected to report a fall in second-quarter revenue hurt by weak cloud demand. Qualcomm Inc is expected to report a decline in third-quarter revenue, on Wednesday, as smartphone demand remains sluggish. Starbucks Corp is expected to report a rise in third-quarter same-store sales on Tuesday, powered by steady demand for its pricey coffees from its affluent customer base. Investors, however, will be focused on the company's outlook and its comments on trends in China, as well as details on margins and cost inflation. U.S. drugmaker Pfizer Inc will report second-quarter earnings before markets open on Tuesday. Investors will watch out for COVID-19 products sales during the quarter and any changes to the company's full-year outlook. Focus will also be on any updates about the Seagen deal and upcoming product launches. On Tuesday, Caterpillar Inc is expected to report a rise in second-quarter profit and estimates on the back of higher sales for construction equipment and commercial customer spending despite the impact of higher costs. On Thursday, the Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to speak on "Recession Revisited" before the Montgomery County Chamber of Commerce. Global grains merchant and oilseed processor Bunge Ltd is scheduled to report second-quarter results on Wednesday, its first quarterly filing since announcing a merger deal with rival crop trader Viterra. Bunge likely benefited in the quarter from a record-large Brazilian soy crop that boosted processing volumes, although crush margins narrowed during the period. Uber Technologies Inc is scheduled to reports second-quarter results on Tuesday. Analysts expect a 16% rise in second-quarter revenue boosted by strong demand for its diversified services and higher ride-hailing prices. Marriott International Inc on Tuesday is expected to post a rise in second-quarter profit and revenue as the U.S. hotel operator benefits from strong travel demand. On Thursday, 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, on Tuesday, U.S. oil producer Devon Energy Corp is expected to report a slump in quarterly 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. On Wednesday, Yum Brands Inc is likely to report a rise in second-quarter sales driven by strength at its Taco Bell and KFC chains, as consumers look for affordable restaurant meals amid inflation. Investors will be focused on the company's margin trajectory, comments on trends at Pizza Hut, menu pricing and recovery in China. Electronic Arts Inc is expected to report a rise in revenue in the first-quarter on strong performance of its latest title "Star Wars Jedi: Survivor" on Tuesday. Merck & Co Inc is scheduled to report its second-quarter earnings on Tuesday. Investor focus is expected to be on sales of cancer immunotherapy Keytruda and human papillomavirus vaccine Gardasil. Norwegian Cruise Line Holdings Ltd is expected to report a rise in second-quarter revenue, on Tuesday, benefiting from higher ticket prices and pent-up demand as customers shift to spending more on experiences. Investors will be eyeing for updates on demand trends, impact from inflation and fuel prices on margins and any forecast that the company provides. On Tuesday, JetBlue Airways Corp is expected to report a profit in the second-quarter compared to a year-ago loss on the back of strong travel demand. Investors will be looking for comments on travel demand, on the airline's now-scrapped Northeast Alliance with American Airlines, and its planned acquisition of Spirit Airlines. Humana Inc is scheduled to report its second-quarter results on Wednesday. Investor focus is expected to be on the company's Medicare insurance plans and its medical costs. Amgen Inc, which is facing Federal Trade Commission delays to its planned acquisition of Horizon Therapeutics reports its second-quarter profit on Thursday. Regeneron Pharmaceuticals Inc is expected to report second-quarter earnings on Thursday. The investors would look out 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. Separately, on the same day Gilead Sciences Inc reports second-quarter profit, with Wall Street expectations for higher HIV drug sales and lower sales of COVID antiviral Veklury. Emerson Electric Co is expected to see a drop in revenues and profit in its second quarter as industrial clients try to control costs as it reports on Wednesday. On Tuesday, fertilizer maker Mosaic Co's second-quarter profit is expected to tumble compared to last year as prices of fertilizers have eased due to an improvement in global supplies and less demand. Canada Goose Holdings Inc is expected to show an increase in first-quarter revenue on Thursday, as demand for its luxury parkas from wealthy shoppers hold strong. Investors will be watching for the company's forecasts, and its comments on China recovery and any signs of slowdown in the U.S. Statistics Canada on Friday is expected to show the country's economy likely added 20,600 jobs in July, while the jobless rate likely rose 5.5% in July. On Tuesday, S&P Global Canada is scheduled to report the manufacturing PMI data for July. Separately, Ivey PMI data is scheduled to release on Friday. On Tuesday, Brazil's statistics agency IBGE is scheduled to release the industrial output data for June. S&P Global Manufacturing PMI for July is scheduled for release the same day. S&P Global composite and services PMI data for July is due for release on Wednesday. (Compiled by Kumar Satyam; Editing by Shweta Agarwal) ((Kumar.Satyam@thomsonreuters.com;))