What to Watch in the Day Ahead - Wednesday, July 26

Tower Semiconductor

25/07/2023 19:30

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Investors will keenly watch out for the U.S. Federal Reserve's monetary policy decision at the
end of a two-day meeting. The Federal Open Market Committee (FOMC) is likely to raise its
benchmark overnight interest rate by 25 basis points to the 5.25%-5.50% range.

Meta Platforms Inc is expected to report an 8% rise in second-quarter revenue on the back of a
recovery in the digital advertising market. Analysts will look for comments on its new platform
Threads, including expected new features, monetization plan, and whether Meta factors Threads in
its earnings forecast. 
    
Boeing Co reports second-quarter earnings, outlining demand and production trends and updating
on the supply-chain challenges faced by the industry.

The U.S. Commerce Department is expected to report new home sales likely fell to a seasonally
adjusted annual rate of 725,000 units in June, from 763,000 units in the month before.

Coca-Cola Co is expected to post a rise in second-quarter revenue, benefiting from steady demand
for its sodas as well as higher prices. Investors will look for comments on further price
increases, easing costs and lower volumes due to price hikes.

Mattel Inc is expected to log a decline in second-quarter sales, hurt by retailer inventory
pullback, slowing consumer spending and higher costs. Investors will watch for Barbie toy sales
forecasts, revenue recovery and inventory outlook for the year.

Chipotle Mexican Grill Inc is expected to post a rise in second-quarter revenue, as Americans
continued to order its burritos and rice bowls despite higher prices. Investors will keep an eye
out for the company's comments on margins and cost inflation and current traffic trends.

AT&T Inc is expected to post a smaller increase in postpaid phone net additions when it reports
its second-quarter earnings. Investors will be looking to the company for comments on the
company's exposure and liabilities, if any, to the lead-cables issue raised by the Wall Street
Journal.

Hilton Worldwide Holdings Inc will report a rise in second-quarter profit/revenue as resilient
demand for travel offset fears of a mounting recession.

Edwards Lifesciences Corporation is set to report second-quarter results after markets close.
Investors will focus on the sales of the company's heart valve replacement devices and
commentary on its full-year forecast.

Thermo Fisher Scientific Inc is expected to report second-quarter earnings before markets open.
Investors will focus on comments on demand trends from its biotech clients, any changes to its
annual earnings forecast, and updates to the medical equipment maker's strategy for mergers and
acquisitions.

The U.S. railroad operator Union Pacific Corp is expected to report higher revenue and profit in
the second quarter, as the company benefited from higher shipment volumes and price hikes.
Comments on coal business, hiring slowdown would be of interest.
    
ebay Inc is expected to report a rise in second-quarter revenue as inflation-hit consumers
gravitated to its refurbished good.
    
Allegion Plc is expected to report a quarterly rise in revenue, backed by the strength of demand
in domestic sales. Investors will be looking out for how the sales in its international segment
will perform in the backdrop of challenging macroeconomic environment.
    
Analysts expect Tower Semiconductor Ltd to report a 17% drop in quarterly revenue hurt by a
downturn in demand for personal computers and other devices amid economic uncertainty.
    
The U.S. oil producer Hess Corp is expected to report a dip in second-quarter profit as oil
prices scaled back from last year's peaks. However, its Guyana assets would help it report
another strong quarter in terms of production.
    
General Dynamics Corp is expected to post higher second-quarter revenue and profit helped by
healthy weapon demand.

Raymond James Financial Inc is expected to miss Wall Street estimates of profits for the third
quarter as the investment bank and brokerage is set to generate a low dealmaking revenue on
macroeconomic headwinds.

Quest Diagnostic Inc is expected to report its second-quarter earnings. Investors would look for
color on its diagnostic business in a post-COVID market and also any changes in 2023 forecast.

PTC Inc is expected to report a 14% rise in third-quarter revenue on sustained demand for its
computer-aided design software. Investors expect to hear from the company on how it plans to
tackle an uncertain economy.

Wall Street expects Lam Research Corp to post a 32.5% drop in fourth-quarter revenue as U.S.
export curbs to China weigh on its financials.

Automatic Data Processing Inc is expected to report a 6.3% rise in quarterly revenue as a stable
labor market boosts demand for its services.

Amphenol Corp is expected to report a second-quarter revenue of $2.95 billion compared with
$3.14 billion revenue a year ago as economic environment remains uncertain.
    
    

 (Compiled by Shreya Sabharwal in Bengaluru; Editing by Shweta Agarwal)
 ((Shreya.Sabharwal@thomsonreuters.com;))