What to Watch in the Week Ahead and on Monday, October 25

Telefonica Brasil, SA

22/10/2021 19:32

(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 impact of Apple Inc's privacy changes on Facebook Inc's digital advertising business
will be in focus when the social media giant reports for the third quarter. Smaller peer Snap
Inc said the iOS changes were a "frustrating setback" and warned of a prolonged hit.

    Frances Haugen, a former product manager on Facebook Inc's civic misinformation team, is due
to give evidence to the UK parliament committee.

    Burger King parent Restaurant Brands International Inc is expected to post an increase in
third-quarter revenue as COVID-19 vaccinations encourage more people to dine out at its
restaurants. 
    
    LIVECHAT-REUTERS GLOBAL MARKETS FORUM
    Polly Mitchell Guthrie, VP of Industry Outreach and Thought Leadership at supply chain
management firm Kinaxis, speaks on the use of AI technology in supply chains and how companies
are dealing with current disruptions. (1400/1800) To join the discussion, click here https://www.refinitiv.com/en/products/refinitiv-messenger/editorial-communities-financial-forums.

    REST OF THE WEEK
    On Thursday, an advance estimate of the gross domestic product is likely to show that the
country grew at 2.8% in the third quarter. Meanwhile, the consumer confidence index is expected
to show a print of 108.8 in October, up from 109.3 in September on Tuesday. Additionally, the
S&P CoreLogic Case-Shiller national home price index is expected on the same day. The Commerce
Department is also expected to release its new home sales data for the month of September.
Orders for durable goods is expected to fall 1.0% in September on Wednesday after climbing 1.8%
in August. On Friday, consumer spending is likely to show an 0.5% jump in August. Also, the
personal consumption expenditures (PCE) price index, excluding the volatile food and energy
components, is expected to climb 0.2% in September after increasing 0.3% in August.

    Google-parent Alphabet Inc is expected to show a rise in revenue, powered by demand for
online ads, on Tuesday. Also, Microsoft Corp is expected to post a rise in first-quarter revenue
on Tuesday. Demand for Azure and Microsoft 365 apps such as Teams is expected to have stayed
strong. Additionally, Twitter Inc is expected to post a rise in third-quarter revenue on
Tuesday, driven by a boost in advertising sales, which was hurt due to the COVID-19 pandemic.
Separately, Apple Inc is expected to post a rise in fourth-quarter revenue on Wednesday from
strong demand for its laptops and phones as people upgrade their devices. Investors will look
for comments on the supply constraints around the company's latest launch of flagship devices.

    With countries opening up borders and international travel showing signs of ticking up,
Mastercard Inc is expected to post a robust growth in its net income when it reports results on
Thursday. The company had started seeing a rebound in consumer spending in the last quarter, in
line with peers. Also, payments giant Visa Inc is expected to report its fourth-quarter earnings
on Tuesday. Analysts expect the company to post a jump in profit, with spending on domestic
businesses and cross-border travel expected to rebound from last year as vaccination rates rise
and curbs introduced last year ease. Additionally, online brokerage giant Robinhood Markets Inc
will publish its second quarterly report as a public company on Tuesday. While demand for
cryptocurrencies and a retail investors-fueled trading mania brought in bumper profits for the
company in the previous quarter, the trading app owner is expected to post a slowdown in trading
volumes on a quarter-over-quarter basis.

    On Thursday, investors will focus on Amazon.com Inc's e-commerce growth as it laps a surge
in sales in the third quarter from a year ago during the peak of the pandemic. The impact of
global supply chain issues as the busy holiday season begins will also be watched.

    Comcast Corp is expected to post a rise in third-quarter revenue on Thursday, benefiting
from strong demand for its broadband services from hybrid work and cable services from the
viewership of the Tokyo Olympic Games. Investors will also look for the company's future plans
for its nascent streaming service "Peacock".

    General Motors Co and Ford Motor Co are likely to show investors both the positive and
negative financial impacts the global semiconductor chip shortage has caused in the industry
when the U.S. automakers report third-quarter results on Wednesday.

    Exxon Mobil Corp's third-quarter profit, powered by oil and gas prices that have more than
doubled in the past year, could hit levels not seen since 2016 on Friday. Results from its oil
and gas production reflect energy prices soaring on worries about supply shortages while
refining margins are being aided by demand for motor fuels and a series of refinery closures in
the last year. Also, Chevron Corp is expected to release its third-quarter results on Friday.

    Boeing Co is expected to post a rise in third-quarter revenue on Wednesday as its recovery
from the 737 Max crisis takes hold and the broader aviation industry bounces back from
pandemic-induced lows. The focus will be on its attempts to restart production of the 787
Dreamliner as well as any ramp-up plans on 737. Defense contractor General Dynamics Corp is
expected to report an increase in its third-quarter revenue on Wednesday, boosted by higher
sales in its aerospace unit which makes Gulfstream business jets. Investors will look for
updates on the company's financial forecast and comments around the business jet market.

    Caterpillar Inc is expected to report a rise in third-quarter revenue and profit from
pandemic-induced lows on Thursday but the focus will be on how much cost increases hit profit as
well as any commentary on supply chain issues from the global economy bellwether. Diversified
manufacturer 3M Co is expected to report a fall in third-quarter profit, hurt by supply chain
constraints and higher raw material and labor costs. Investors will look for updates on the
company's financial forecast and comments around inflation.

    Global grain trader Archer-Daniels-Midland Co is expected to report higher third-quarter
earnings on Tuesday, despite weeks of suspended export shipments at the top U.S. grains port
after Hurricane Ida. Strong crop processing margins and robust demand for food and renewable
fuel feedstocks likely helped the agribusiness giant to continue a recent string of strong
quarterly results. Meanwhile, Bunge Ltd on Wednesday is likely to turn in a solid third-quarter
profit as strong oilseed processing margins and robust demand for food and renewable fuel
feedstocks propelled earnings.
    
    Harley-Davidson Inc's strategy will be in focus again in the third-quarter on Wednesday but
investors will focus on how much soaring raw material prices and supply chain issues have hurt
the company.

    Helped by a rebound in its TV and film production business and demand for toys based on big
entertainment properties, Hasbro Inc is expected to post a rise in revenue for the third
quarter. However, all eyes are likely to be on the toymaker's holiday season outlook after rival
Mattel brushed away some concerns of product shortages for the crucial shopping season.

    A panel of independent advisers to the U.S. Food and Drug Administration are set to meet on
Tuesday to discuss the authorization of the Pfizer-BioNTech COVID-19 vaccine for use in children
aged 5 to 11. Separately, Thermo Fisher Scientific Inc will report financial results for the
third quarter before the market opens on Wednesday. Investors will be on the lookout for any
comment on COVID-19 test sales, demand for its raw materials used in COVID-19 vaccines and its
annual forecast.

    Advanced Micro Devices Inc is expected to post a rise in third-quarter revenue, thanks to
strong demand for its chips used in PCs and gaming devices. Texas Instruments Inc is set to
report a rise in third-quarter revenue due to strong demand from end markets including
automobiles amid supply chain pressures.

    Rohit Chopra, the head of the U.S. Consumer Financial Protection Bureau (CFPB), will testify
before lawmakers of the top House financial services panel on the state of the consumer watchdog
on Wednesday.

    Kraft Heinz Co is expected to post a slight dip in third-quarter revenue on Wednesday, as
easing COVID-19 curbs encouraged consumers to dine out, slowing demand for packaged foods.
Investors will be looking out for the Jell-O maker's commentary on rising raw material costs,
supply-chain issues and inflation.

    Coca-Cola Co is expected to report a rise in third-quarter revenue on Wednesday as the
reopening of restaurants and theaters boost demand for sodas. Investors will be on the lookout
for an update from the company on how global supply chain issues are affecting its shipments and
costs, and whether it is planning any more price increases like rival PepsiCo Inc.

    Yum! Brands is expected to post a rise in third-quarter revenue on Thursday, driven by
steady online demand and customers returning to its restaurants following easing COVID-19 curbs.
Investors will be looking out for the KFC parent's forecast and commentary on the supply chain,
inflation and labor. Coffee chain Starbucks Corp is expected to post an increase in
third-quarter revenue on Thursday, thanks to strong demand for its espressos and cold brew as
more people return to offices. Investors will look out for comments on labor and commodity
inflation as well as price increases.

    The Bank of Canada will issue a scheduled rate decision and updated Monetary Policy Report
on Wednesday. It is expected to hold its key overnight interest rate at 0.25%. On Friday, Canada
is expected to show its economy grew by 0.7% in August, after shrinking by 0.1% in July. 
Canada's producer prices data for September is also due on the same day.

    Canada's Shopify Inc is expected to post a rise in third-quarter revenue on Thursday, as
more merchants joined it platform to capitalize on social commerce and e-commerce trends.

    Participants in Brazil's 5G cellular auction are due to present their closed envelope bids
on Wednesday ahead of a Nov. 4 auction, with incumbents America Movil, Telefonica Brasil and TIM
expected to be the main bidders.


 (Compiled by Archak Sengupta; Editing by Devika Syamnath)
 ((Archak.Sengupta@thomsonreuters.com;))