What to Watch in the Week Ahead and on Monday, November 27
24/11/2023 19:12
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ON MONDAY
A report from the Commerce Department is likely to show new home sales fell 34,000 to a
seasonally adjusted annual rate of 725,000 units in November.
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REST OF THE WEEK
On the U.S. economic front, a raft of data is expected in the week ahead. The Commerce
Department's Bureau of Economic Analysis, on Wednesday, is expected to give the second estimate
of third-quarter gross domestic product where it is likely to show the U.S. economy expanded at
a 5% rate. The Commerce Department on Thursday is expected to say the personal consumption
expenditures (PCE) price index, excluding the volatile food and energy components, likely edged
up 0.2% in October, after a 0.3% increase in September. In the 12 months through October, the
so-called core PCE price index likely advanced 3.5%, after a 3.7% rise on the same basis in
September. Meanwhile, consumer spending likely rose 0.2% in October, after a 0.7% increase in
September. Personal income is expected to have accelerated 0.2% in October, following a 0.3%
gain in the month before.
On Friday, the Institute for Supply Management is likely to report that its manufacturing PMI
rose to 47.7 in November from 46.7 in October. The Commerce Department, on Friday, will probably
report that construction spending rose 0.4% in October after a similar rise in September.
Separately, a report on Tuesday from the Conference Board is likely to show the consumer
confidence index fell to 101.0 in November from 102.6 in October. Also on Tuesday, the S&P
CoreLogic Case-Shiller national home price index is expected to show a reading of 0.9% in
September on a seasonally adjusted month over month basis. On Thursday, initial claims for state
unemployment benefits are expected to increase to a seasonally adjusted 215,000 in the week
ending Nov. 25, compared with 209,000 claims in the prior week. The National Association of
Realtors pending home sales index, on Thursday, is expected to drop 1% in October after it rose
1.1% in the previous month.
The Federal Reserve is set to issue the Beige Book on Wednesday. (1400/1900)
Federal Reserve Chair Jerome Powell on Friday is likely to participate in a fireside chat at
Spelman College in Atlanta, (1100/1600) while Federal Reserve Board Governor Lisa Cook is
expected to participate in a roundtable to hear from local leaders in the tech innovation and
entrepreneurship community during a visit to Spelman College on the same day. (1400/1900).
On Tuesday, Federal Reserve Vice Chair for Supervision Michael Barr is scheduled to speak
virtually on the Community Reinvestment Act before the event, 'Modernized Community Reinvestment
Act and Indian Country' (1305/1805) and is expected to participate virtually in a discussion
before the Opportunity Finance Network Fireside Chat on the Community Reinvestment Act
Regulations. (1530/2030) Separately, Barr will be speaking on 'Bank Supervision and Regulation'
before the Fifth ECB Forum on Banking Supervision in Frankfurt on Friday.
Federal Reserve Bank of Chicago President Austan Goolsbee on Tuesday will give welcome and
opening remarks before hybrid 'Who Owns Midwest Farmland? And Why?' Midwest Agricultural
Conference hosted by the Federal Reserve Bank of Chicago in Chicago. (1000/1500) Also, Goolsbee
is expected to participate in moderated question-and-answer session before the 37th Annual
Economic Outlook Symposium at the Federal Reserve Bank of Chicago on Friday.
Federal Reserve Board Governor Michelle Bowman is likely to speak on 'Monetary Policy and the
Economy' before a Utah Bankers Association breakfast in Salt Lake City on Tuesday. (1045/1545)
Separately, on Tuesday, Federal Reserve Board Governor Christopher Waller is set to speak on the
economic outlook before an American Enterprise Institute event, 'The Federal Reserve and the
Economic Outlook: A Conversation with Federal Reserve Governor Christopher J. Waller' in
Washington. (1005/1505). On Wednesday, Federal Reserve Bank of Cleveland President Loretta
Mester is expected to speak on 'Financial Stability' before the Policy Conference 2023 hosted by
the Loyola University Chicago Quinlan School of Business in Chicago. (1345/1845) Federal Reserve
Bank of New York President John Williams is scheduled to give keynote address before the Bretton
Woods Committee's 'Exploring Innovations in Central Banking' conference in New York on Thursday.
(0905/1405)
On Wednesday, General Motors CEO Mary Barra and CFO Paul Jacobson are scheduled to update
analysts on the state of the automaker's business. (0800/1300) They are likely to discuss the
impact of the new UAW contract and the outlook for the Cruise robo-taxi unit.
Salesforce, on Wednesday, is expected to report a rise in third-quarter revenue, helped by a
pickup in spending for the company's cloud and business products.
Synopsys, on Wednesday, is expected to post 23% rise in its fourth-quarter revenue as AI trends
boost chip demand.
Human resources software company Workday is set to report on Tuesday a rise in third-quarter
revenue as demand for the company's cloud-based software services remain strong amid an easing
macro environment.
Dell Technologies is expected to post a 6% fall in third-quarter revenue due to weak demand for
its servers and network equipment on Thursday.
Data analytics software maker Splunk, on Tuesday, is likely to report a rise in third-quarter
revenue, helped by strong demand for the company's cybersecurity software.
NetApp is expected to release its second-quarter results on Tuesday. It is expected to report an
8% fall in revenue on weak demand for its cloud services.
A U.S. judge will hold a final pretrial conference on Thursday ahead of a trial in the U.S.
Securities and Exchange Commission's fraud case against cryptocurrency developer Terraform Labs
and its founder Do Kwon.
A report from Statistics Canada on Thursday is likely to show that Canada's economy expanded in
the third quarter at an annualized rate of 0.2%, following a 0.2% decline in the quarter before.
Another report on Friday will likely say that the country added 15,000 jobs in November. The S&P
Global Canada Manufacturing Purchasing Managers' Index report is also expected on Friday.
On Latam front, Bank of Mexico will publish its quarterly report on the country's finances, with
a presentation by the bank's governing board on Wednesday. Meanwhile, the IBGE is scheduled to
release Brazil's industrial production figures for October on Friday, while S&P Global
manufacturing PMI data and trade balance numbers for November are expected on the same day. On
Tuesday, Brazil's IPCA-15 Mid-Month CPI data for November is scheduled, while the IGP-M
inflation index reading for the same month is likely to be released on Wednesday. Chile's INE is
set to report the unemployment rate for October on Wednesday. Also, Chile's manufacturing output
data is expected on Thursday, along with IMACEC economic activity index reading expected on
Friday.
(Compiled by Haritha K P in Bengaluru; Edited by Shilpi Majumdar)
((Haritha.KP@thomsonreuters.com;))