What to Watch in the Day Ahead - Wednesday, November 1

Tyler Technologies

31/10/2023 18:30

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Federal Reserve Chair Jerome Powell will announce the policy rate decision after a two-day
monetary policy meeting, with investors keen to hear policymakers' views on the U.S. economy and
interest rate outlook.

On U.S. economic front, the Job Openings and Labor Turnover Survey for September is likely to
fall to 9.25 million from 9.61 million in August. Separately, the Institute for Supply
Management's manufacturing purchasing managers' index for October is expected to show a reading
of 49.0. Additionally, construction spending will likely rise another 0.4% in September after a
jump of 0.5% in August.

Qualcomm, hurt by persistent weakness in the smartphone market, is expected to report a fall in
fourth-quarter revenue. 

CVS Health Corp will look to provide updates on its annual earnings forecast and provide
commentary about its costs-saving efforts and medical costs at its health insurance business
when it reports its third-quarter results. 

Mondelez International is expected to post a rise in third-quarter revenues, helped by robust
demand for its snacks and chocolates despite several price increases. Investors will look out
for comments on holiday demand, volume trends in Europe and comments on price actions.

Aerospace supplier Spirit AeroSystems will release its third quarter results in its first
earnings with interim CEO Patrick Shanahan at the company's helm.

Humana will report its third-quarter earnings on the back of the company announcing the
appointment of a new CEO. Investors will watch out for medical cost trends amid a recovery in
non-urgent procedures and easing staffing constraints, commentary on the outlook for 2024 and
star ratings.

Estee Lauder is expected to post a fall in first-quarter revenue, signaling a hit from slowing
demand for luxury make-up and skincare in the United States and a weak recovery in its travel
retail business. Investors will look out for comments on China, the impact of a stronger dollar,
retail inventory orders and pausing manufacturing of products.

Yum! Brands is likely to report an increase in quarterly same-store sales, as cheaper menu items
and promotions at its Taco Bell and KFC chains pull more customers. Analysts will be focused on
the restaurant operator's outlook, and updates on current demand trends, promotional environment
and weight-loss drugs will also be on top of investors' minds.    
    
PayPal is expected to report a rise in quarterly profit and revenue as the payments giant
benefits from resilient consumer spending against an uncertain economic backdrop. Analyst and
investor focus is expected on operating margins and the company's outlook for the critical
holiday shopping season.

Clorox is expected to post a fall in first-quarter revenue after a cyber attack in August caused
product outages and disrupted supplies and operations. Investors will look out for comments on
restarting operations, demand for its products, pricing and any hit to volumes from price hikes.
   
    
Exxon Mobil CEO Darren Woods will discuss leadership, business strategy, and the energy
transition in a conversation with Joseph L. Hooley, former chairman of State Street Corporation,
at a Boston College Chief Executives Club luncheon.

Airbnb is expected to post a rise in its third-quarter revenue as demand for rental stays
remains strong.

Video game publisher Electronic Arts is expected to post a rise in second-quarter revenue,
helped by a recovery in spending by gamers and strong demand for its gaming titles.

Insurer MetLife is scheduled to report its third-quarter earnings. Investors will be eyeing the
company's earnings to gauge the health of the insurance sector, which has seen some respite this
quarter as a rebound in markets boosts investment income.

AIG is scheduled to report its third-quarter earnings. The company is expected to see a jump in
profit, helped by gains in its life and retirement unit.

DoorDash is expected to post a rise in third-quarter revenue, benefiting from steady demand for
groceries, pet-food items and at-home orders from consumers despite higher prices. Investors
will look for comments on shifts in consumer spending, the impact of inflation, how new
verticals are performing and any forecast the company provides.
        
Cognizant Technology Solutions is expected to post higher third-quarter revenue on growing
service demand as businesses digitize their operations. Additionally, Tyler Technologies is
expected to post higher third-quarter revenue on rising demand for its software and services
exclusive to the public sector.

Roku is expected to report a rise in revenue, with net losses expected to double in its
third-quarter report.

Etsy is expected to post a rise in third-quarter revenue, helped by resilient demand for
personalized products and gifts sold on its online marketplace, despite a broader slowdown in
discretionary spending from consumers. Investors will watch out for comments on consumer demand
ahead of the crucial holiday season.

Norwegian Cruise Line is expected to post a rise in third-quarter revenue, helped by steady
cruise vacation demand and higher ticket prices. Investors will look out for comments on booking
trends, updates on forecasts and any impact from rising fuel costs as well as a stronger U.S.
dollar.
   
Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will speak with
lawmakers on the Canadian Senate panel on banking, commerce and the economy.

Canada's S&P Global manufacturing PMI reading for October is scheduled for release.

Brazil's central bank is expected to announce its decision on the country's benchmark interest
rates. Separately, the country's industrial output data for September is due.


 (Compiled by Archak Sengupta in Bangalore; Editing by Tasim Zahid)
 ((Archak.Sengupta@thomsonreuters.com;))