What to Watch in the Week Ahead and on Monday, October 30

Tyler Technologies

27/10/2023 19:35

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ON MONDAY 

McDonald's is expected to show a rise in third-quarter same-store sales, as its cheaper burgers
and fries drew customers, but sales growth is likely to slow on both a sequential and
year-on-year basis. Investors will watch for the company's outlook for the current quarter, its
comments on traffic, pricing plans, foreign exchange pressures and expectations around
weight-loss drugs.

Sundar Pichai, chief executive of Alphabet and its subsidiary Google, will testify in the
once-in-a-generation antitrust fight over Google's dominance of search and some parts of search
advertising.
    
Revvity is set to report its third-quarter results before markets open. Investors will look for
comments on demand for its medical equipment, especially in China, and any changes to its annual
revenue forecast.

Vans sneaker maker VF Corp is expected to post a fall in second-quarter revenue as
cost-conscious customers pull back spending amid rising prices and higher interest rates.
Investors will eye comments on demand trends, brand performances, holiday shopping comments and
any update on the second-half forecast.

Image-sharing platform Pinterest is expected to report higher third-quarter revenue, helped by a
recovery in the digital advertising market.

Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will speak with
lawmakers on the House of Commons finance panel.    
    
Air Canada is expected to swing to a third-quarter profit from a year earlier loss, as the
country's largest carrier took advantage of strong demand during the peak summer travel season
despite surging fuel prices.
    
Brazil's IGP-M inflation index for October and budget balance data for September are due for
release. 


REST OF THE WEEK 
    
U.S. Federal Reserve officials will start their two-day monetary policy meeting on Tuesday, and
a decision on benchmark interest rates is due on Wednesday. The central bank is widely expected
to keep its policy rate unchanged at the upcoming meeting. Investors will be eager to hear
policymakers' views on the economy and interest rate outlook. Separately, the Bank of Japan is
expected to conclude a two-day policy meeting on Tuesday amid growing pressure to shift further
away from its controversial bond yield control, as rising global bond yields and persistent
inflation push the 10-year JGB yield closer to a ceiling set just three months ago. Meanwhile,
the Bank of England looks set to keep interest rates on hold on Thursday but also stresses that
it is far from relaxing its fight against Britain's high inflation rate despite growing worries
about a recession.

On the U.S. economy front, the Labor Department is expected to release the widely-watched
monthly employment report on Friday. Non-farm payrolls likely increased by 172,000 jobs in
October, compared to a gain of 336,000 jobs reported in September. The unemployment rate for the
same month is expected to remain at 3.8%. Average hourly earnings likely advanced 0.3% in
October after a 0.2% rise in September. A separate report from the Commerce Department on
Thursday is expected to say factory orders accelerated 1.0% in September after a 1.2% gain in
August. On Wednesday, the ISM's manufacturing PMI for October is expected to be unchanged at
49.0. Construction spending, the Commerce Department is likely to say on Wednesday, likely
increased 0.4% in September after rising 0.5% in August. The conference board on Tuesday is
scheduled to report its consumer confidence index, probably dropping to 100 in October from 103
in September. Jobless claims data for the week ending October 28 is due on Thursday. 

Apple is expected to report a drop in revenue in the third quarter on Thursday, which would
capture continued de-acceleration in Mac computers and iPad sales and a just over 2% growth in
iPhone sales. Investors will expect its comments on the holiday-shopping quarter outlook and the
early sales for the iPhone 15 line, which it launched in September. Separately, Apple will hold
a virtual event entitled 'Scary Fast' on Tuesday. Analysts expect new Mac computers to be
unveiled.

Pfizer will report third-quarter earnings before markets open on Tuesday. The results come a few
weeks after Pfizer announced a cost-cutting plan and slashed its full-year outlook due to
lower-than-expected sales of its COVID products. Investors will watch out for details on job
cuts, sales of COVID products in the quarter and comments about expectations for the COVID
products market next year. Moderna will report third-quarter results on Thursday at a time of
increased uncertainty over the demand for COVID-19 vaccines. Investors will focus on the
company's sales target for this year and the next after larger rival Pfizer reduced its 2023
sales outlook in October on a plunge in revenue of COVID-related products. 
    
Separately, Eli Lilly will report third-quarter results before markets open on Thursday.
Investors will look for any changes to outlook, quarterly sales of its new diabetes drug
Mounjaro and comments around preparation for the drug's launch as a weight-loss treatment later
this year. Focus will also be on any updates for its Alzheimer's drug candidate and Mounjaro
supply. Also, Regeneron Pharmaceuticals is set to report third-quarter results before markets
open on Thursday. Investors will focus on quarterly sales of the higher-dose version of the
company's eye disease drug, Eylea and the eczema drug Dupixent.   

Caterpillar is expected to report a higher third-quarter profit on Tuesday as demand in its
construction stays firm on the back of the federal government's infra projects.
    
Qualcomm is expected to report a fall in fourth-quarter revenue on Wednesday, hurt by a
persistent weakness in the smartphone market.

CVS Health with report third-quarter results before markets open on Wednesday. Investors will
look for updates on the annual earnings forecast commentary regarding cost-saving efforts and
medical costs at its health insurance business.
    
Mondelez International is expected to post a rise in third-quarter revenues on Wednesday, 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.

Starbucks is expected to post an uptick in fourth-quarter same-store sales on Thursday, as store
efficiency improvements and its loyalty program keep sales afloat even as some consumers cut
spending on its pricey coffees and cold beverages. The company's comments on China's market
recovery will be keenly watched, while expectations for 2024 and its update on its reinvention
plans will also be in focus.

Video game publisher Electronic Arts is expected to post a rise in second-quarter revenue on
Wednesday, helped by a recovery in spending by gamers and strong demand for its gaming titles.
        
Federal Reserve Vice Chair for Supervision Michael Barr will participate in a discussion on the
Community Reinvestment Act before the "National Housing Conference - Breakfast with Barr: A
Conversation About CRA in the 21st Century" event in Washington on Friday. (0800/1200)
Separately, on the same day, Barr will participate virtually in a discussion on the Community
Reinvestment Act before the event titled "The New Community Reinvestment Act Rule: What It Means
For Communities Around the Country."

Yum Brands will likely report an increase in third-quarter same-store sales on Wednesday, 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.

Nikola is expected to post a dip in third-quarter revenue on Thursday as the company battles
with a recall of its trucks due to battery issues. Wall Street is looking forward to hearing
about its strategy for its hydrogen fuel cell electric trucks.
    
Monster Beverage is expected to post a rise in third-quarter sales on Thursday, benefiting from
higher pricing and resilient demand for its high-performance energy drinks and wellness
beverages. Investors will look for comments on pricing,  private-label competition and a shift
in consumer demand.

Molson Coors is expected to post a rise in third-quarter revenue on Thursday, helped by steady
demand for its beers and higher prices. Investors will eye for comments on demand trends in
North America, gross margin recovery and any updates on forecast.

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

Estee Lauder is expected to post a fall in first-quarter revenue on Wednesday, signalling a hit
from slowing demand for luxury make-up and skincare in the United States and 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.

GE Healthcare is scheduled to give its third-quarter earnings report on Tuesday. Investor focus
will be on its medical imaging equipment sales.

Drug distributor Cencora will report fourth-quarter results before markets open on Thursday.
Investors will look for the initial 2024 outlook and commentary regarding demand for generic and
speciality drugs.

Organon & Co will report third-quarter results before markets open on Thursday. Investors will
look for updates on annual earnings forecast and performance across its women's health and
biosimilar businesses.

Norwegian Cruise Line is expected to post a rise in third-quarter revenue on Wednesday, 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.

DoorDash is expected to post a rise in third-quarter revenue on Wednesday, 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.

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

Exxon Mobil CEO Darren Woods on Wednesday 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. 

Cognizant Technology Solutions is expected to post higher third-quarter revenue on Wednesday on
growing service demand as businesses digitize their operations. Additionally, Tyler Technologies
is expected to post higher third-quarter revenue on Wednesday on rising demand for its software
and services exclusive to the public sector.

Albemarle, the world's largest lithium producer and a key Tesla supplier, is set to report a
jump in third-quarter profit. Separately, Rare Earth miner MP Materials is set to post
third-quarter results on Thursday and give an update on its attempts to resume refining the
critical strategic minerals in California.

Ball Corp is expected to report a decline in third-quarter revenue on Thursday as demand for its
aluminium packaging, like beverage cans, shrinks as companies struggle with consumers cutting
down on discretionary spending amid tightened household budgets. Investors will watch out for
comments on the company's inventory levels and the impact of retail pricing on its operations.

Church & Dwight is expected to post a rise in third-quarter revenue on Friday, helped by higher
prices and steady demand for its household and personal care products, including liquid
detergents and mouthwash. Investors will look for comments on demand trends, gross margin
recovery, impact on volumes and any update on the forecast.

Paramount Global is expected to report a rise in third-quarter revenue on Thursday. Analysts
will look for commentary on ad demand and the impact of Hollywood strikes.

Cybersecurity firm Fortinet is expected to post higher third-quarter revenue on Thursday on
rising demand for the company's products due to a surge in online threats.

Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will speak on
Wednesday with lawmakers on the Canadian Senate panel on banking, commerce and the economy.

Statistics Canada is expected to release GDP data for August on Tuesday. The country's
employment data for October is due on Friday. S&P Global's Canada manufacturing PMI data is due
on Wednesday. 

Canada's Shopify is expected to post a rise in third-quarter revenue on Thursday, as more
merchants joined its platform to capitalize on social commerce and e-commerce trends.
    
Restaurant Brands International is set to report a rise in third-quarter sales. Still, growth is
expected to slow as traffic at Burger King and Popeyes slows amid a pullback in consumer
spending. Investors will watch for the company's outlook, updates on Burger King's turnaround,
franchise health, and pricing.
    
Brazil's industrial output data for September is slated for release on Wednesday. On the same
day, the country's central bank is expected to announce a decision on the country's benchmark
interest rates. Mexico's third-quarter gross domestic product (GDP) data is due Tuesday. Chile's
September Jobless rate data and manufacturing activity data are due on Tuesday, while September
economic activity data is due on Thursday.



 (Reporting by Nachiket Tekawade and Ankita Yadav in Bengaluru; Editing by Tasim Zahid)
 ((Nachiket.Tekawade@thomsonreuters.com;))