What to Watch in the Week Ahead and on Monday, August 28

Sovos Brands

25/08/2023 19:59

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ON MONDAY
Federal Reserve Vice Chair for Supervision Michael Barr is due to participate in "Banking
Services" roundtable discussion with the Confederated Salish and Kootenai Tribes Council. (1230
/1630)
    
Mexico's national statistics agency is expected to report trade balance data for July. The
country posted a $1,424 million trade deficit in June when adjusted for seasonal swings.
Additionally, Brazil's central bank is scheduled to report the country's bank lending data for
July. The country's FGV consumer confidence data also due for release is likely to show a
reading of 96.8 for the month of August, compared to 94.8 in July.
    
REST OF THE WEEK
On the U.S. economic calendar, the Institute for Supply Management (ISM) on Friday is expected
to report manufacturing PMI likely rose to 47.0 in August from 46.4 in the previous month. The
survey's measure of prices paid by manufacturers likely came at 43.5 in August, compared to 42.6
in July. The Labor Department's employment report also due on Friday is likely to show nonfarm
payrolls rose by 170,000 jobs in August, compared to an increase of 187,000 jobs reported in the
previous month. Private payrolls in August are likely come in at 150,000 jobs, compared to
172,000 jobs in July. The unemployment rate likely remained unchanged at 3.5% in August. The
report is also expected to show that average hourly earnings rose 0.3% on a monthly basis in
August compared with an increase of 0.4% in July. On Thursday, data from the Commerce Department
is expected to show personal consumption expenditures (PCE) price index likely rose 0.2% on a
month-on-month basis in July. Annually, the PCE price index jumped 3.3% in the 12 months through
July. Excluding the volatile food and energy components, the PCE price index likely climbed 0.2%
in July. In the 12 months through July, the core PCE price index likely rose 4.2%. The Labor
Department is expected to report on Thursday initial claims for state unemployment benefits rose
by 5,000 to a seasonally adjusted 235,000 for the week ended August 26, compared to 230,000
recorded for the previous week. On Wednesday, the government in its second estimate of
second-quarter Gross domestic product (GDP) is scheduled to report the economy likely grew at a
2.4% annualized rate in the second quarter. The preliminary data on personal consumption
expenditures price index (PCE) excluding food and energy for the second quarter is also due for
release. The ADP National Employment report on Wednesday is likely to show U.S. private payrolls
fell to 195,000 jobs in August, compared to 324,000 jobs reported in the previous month. On
Tuesday, the Labor Department is expected to release the Job Openings and Labor Turnover Survey,
or JOLTS report. The Conference Board, on Tuesday, is likely to report consumer confidence rose
to 116.0 in August, compared with 117.0 reported in July. The Commerce Department is due to
report on Thursday consumer spending likely edged up 0.6% in July, compared to a 0.5% rise in
June. U.S. construction spending likely remained unchanged at 0.5% in July, the Commerce
Department is expected to report on Friday. 

Federal Reserve Vice Chair for Supervision Michael Barr is due to participate in "Banking
Services" roundtable discussion with the Blackfeet Business Council on Tuesday. On Thursday,
Federal Reserve Bank of Atlanta President Raphael Bostic is due to make prepared remarks and
participate in a panel discussion at the South African Reserve Bank's Biennial Research
Conference. In another event the same day, Federal Reserve Bank of Boston President Susan
Collins speaks virtually on creating an economy that works for all and the role community
colleges play in the nation's essential development of its people and workforce before the
Bunker Hill Community College annual convocation. Later on Friday Bostic is scheduled to
participate in a panel discussion at the South African Reserve Bank's Biennial Research
Conference with SARB governor Lesetja Kganyago, IMF first deputy managing director Gita
Gopinath, and Huw Pill, chief economist and executive director for Monetary Analysis and
Research at Bank of England. On Friday, Federal Reserve Bank of Cleveland President Loretta
Mester is scheduled to give closing remarks onsite before hybrid Inflation: Drivers and Dynamics
Conference 2023 in Frankfurt am Main, Germany. 

Broadcom Inc is expected to report on Thursday a rise in third-quarter revenue as the chipmaker
benefits from the artificial intelligence boom.

Lululemon Athletica Inc is expected to post a rise in second-quarter revenue on Thursday helped
by resilient demand for its pricey activewear from affluent Americans. Investors will look out
for comments on demand trends in North America and China, cost control initiatives, inventory
management and any forecast that the company provides.

Dollar General Corp is expected to post a rise in second-quarter revenue on Thursday as
customers, pinched by still-high inflation, opt for cheaper groceries, apparel and party
supplies. Investors will be looking out for margin impact from spending shift to essential
goods, retail shrink and comments on near-term U.S. demand.

Woodford Reserve bourbon maker Brown-Forman Corp is expected to post a rise in first-quarter
revenue on Wednesday, driven by steady demand for its premium whiskeys and other alcoholic
beverages. Investors will look for comments on raw material and supply chain costs and travel
retail sales.

Hormel Foods Corp, on Thursday, is expected to post a marginal rise in third-quarter revenue on
resilient demand for its packaged meat and food products, with consumers preferring cheaper
home-cooked meals over dining out. Investors will seek comments on inventory levels, costs of
raw material and promotional strategies.

Best Buy Inc is expected to post a fall in second-quarter revenue on Tuesday, as American
shoppers hit a pause on buying electronics and home appliances amid strained household budgets
due to rising costs of living. Investors will look out for comments on back-to-school shopping,
holiday season and benefit from easing costs.

On Thursday, UBS AG will report its second-quarter results together with Credit Suisse for the
first time since it took over Switzerland's number two bank.

On Tuesday, J M Smucker Co is expected to post a drop in first-quarter revenue as it battles
stiff competition from private label brands with consumers trading down to cheaper options from
its higher priced jams and coffees. Investors will watch out for comments on pricing strategies
and consumer trends from the company.

On Thursday, Campbell Soup Co is expected to post a rise in fourth-quarter sales, as higher
prices help offset weak demand at a time when consumers are trading down to cheaper food brands.
Investors will be focused on the company's forecast, its comments on demand trends, private
label competition, margins and details around its $2.7 billion deal to buy Sovos Brands.

U.S. ride-hailing firm Uber Technologies Inc on Thursday is scheduled to launch its first
electric product in Kenya, its first step towards greening its entire fleet. Firms are racing to
adopt sustainable business practices to help combat the threats posed by climate change through
reduction of emissions.

Catalent Inc is expected to report fourth-quarter earnings before markets open on Tuesday.
Investors will focus at commentary on full-year forecasts at a time when the contract research
manufacturer has been hit by production snags at its major facilities, including its Brussels
unit where it does filling work for Novo Nordisk's Wegovy. Focus will also be on updates about
its other Maryland manufacturing site, where it produces raw material for mRNA-based therapies
and gene therapies as well as at its plants in Bloomington, Indiana which deals with drug
product manufacturing.

On Friday, Statistics Canada is expected to report the country's economy likely shrunk 0.2% in
the second quarter, compared to a 0.3% growth in the previous quarter. Annualized GDP rate
likely came in at 1.2% for the second quarter, compared to 3.1% rate recorded in the previous
quarter. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) data for August is
also scheduled for release on the same day. On Thursday, Statistics Canada is due to release the
country's current account data for the second quarter.

On Friday, Brazil's government statistics agency IBGE is scheduled to release the country's GDP
data for the second quarter and trade balance data for August. The country's S&P Global
manufacturing PMI for August is also due for release. On Wednesday, Brazil's statistics agency
IBGE is scheduled to report producer price index (PPI) data for July. On the same day, the
country's Labor Ministry is expected to release payroll data for July and the Treasury
Department is due to report trade balance data for July. On Thursday, Brazil's central bank is
expected to release budget balance data for July and the country's statistics agency IBGE is due
to release unemployment rate for July. 

Mexico's Finance Ministry is scheduled to report the fiscal balance data for July on Wednesday.
Mexico's national statistics agency INEGI is due to release economic activity data for June on
Tuesday and jobless rate data for July on Thursday. Mexico's S&P Global manufacturing PMI for
August is scheduled for release on Friday. 

Chile's statistics agency INE is due to report the country's jobless rate for July on Wednesday.
Chile's manufacturing output in July is due for release on Thursday.  

 (Reporting by Ananya Roy in Bangalore; Editing by Shweta Agarwal)
 ((Ananya.Roy@thomsonreuters.com;))