What to Watch in the Day Ahead - Thursday, October 26

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25/10/2023 19:31

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Amazon is expected to report an increase in third-quarter revenue growth on resilient consumer
spending and strong cloud services demand.

On the U.S. economic front, gross domestic product (GDP) probably increased at a 4.3% annualized
rate in the third quarter, the Commerce Department is expected to say in its advance estimate.
The Labor Department is expected to say initial claims for state unemployment benefits likely
rose to 210,000 in the week ending Oct. 21, compared to 198,000 claims in the prior week. The
number of people receiving benefits after an initial week of aid, also known as continuing
claims, likely rose to 1.740 million in the week ending Oct. 14 from 1.734 million the week
before. The Commerce Department is scheduled to report orders for durable goods likely rose 1.7%
in September after increasing 0.1% in August. 

United Parcel Service is expected to report a fall in third-quarter profit, as the logistics
giant handled fewer packages and fights to win back customers who fled after the
Teamsters-represented workers threatened to strike.

Intel is expected to report a drop in third-quarter revenue. The chipmaker, looking to turn
around its business after falling behind peers, has been impacted by a slowdown in the data
center market in recent months and a sluggish recovery in PC demand.

Mastercard is scheduled to report its third-quarter earnings. Spending patterns, especially on
cross-border travel, will be under the scanner. Investors will also be scrutinizing the Chinese
market impact.
        
Merck is scheduled to report its third-quarter earnings. Investor focus is expected to be on the
sales of cancer immunotherapy Keytruda and the human papillomavirus (HPV) vaccine Gardasil.

Ford Motor is scheduled to report third-quarter results even as the U.S. automaker works to end
a costly walkout by the United Auto Workers union.    
     
Federal Reserve Board Governor Christopher Waller will give opening remarks before the Economics
of Payments XII Conference in Washington. (0900/1300) 

The U.S. International Trade Commission is expected to decide whether to ban imports of Apple
Watches based on allegations that they infringe patents belonging to medtech company Masimo. An
ITC judge preliminarily ruled for Masimo in January.

Bristol Myers Squibb will report third-quarter earnings before markets open. Investors will look
out for performance in the quarter amid generic competition for its major drugs and updates on
its annual. Any commentary around the 2024 outlook will also be keenly watched.

Media giant Comcast is expected to report a fall in its third-quarter revenue as advertising
spending remains tight, with little signs of improvement in an uncertain economy.
    
Global agricultural commodities trader and processor Bunge will release third-quarter results
after raising full-year earnings guidance in August following a strong first half and favorable
oilseed crush margin outlook. Investors will look out for any updates on Bunge's merger with
Viterra, which is expected to close in mid-2024.

Kenvue is expected to report third-quarter results before markets open. Investors will look out
for changes to the company's full-year forecast and sales of its skincare products and
over-the-counter medicines. Comments around shift in consumer spending, higher costs, price
increases and updates on legal challenges related to its Tylenol Cold & Flu medicine will also
be in focus.

Harley-Davidson is expected to post a decline in third-quarter sales and profit due to slowing
leisure demand. Investors will be looking for signs of increasing inventories as the forecast
for retail demand looks murky heading into 2024.
  
Southwest Airlines is expected to report lower third-quarter profit. The focus will be on the
airline's commentary on the strength of domestic travel demand and cost pressures.
      
Altria Group is expected to post a marginal rise in third-quarter revenue as it benefits from
steady demand for higher-priced spitless nicotine pouches and Marlboro cigarettes. Investors
will watch out for comments on shipment volumes and market share gains for Altria's on! nicotine
pouches in the U.S.

Boston Scientific is expected to report its third-quarter earnings. Investor focus is likely on
the impact of biotech funding crunch and demand for its cardiovascular devices.

Laboratory Corp of America will report third-quarter results before markets open. Investors will
look for updates on the annual earnings forecast and commentary on supply constraints related to
non-human primates.
    
Kimco Realty is expected to post a rise in quarterly revenue as it benefits from higher rental
rates and steady lease demand at its grocery-anchored shopping malls. Investors will watch out
for any updates on its deal to acquire fellow commercial real estate investment trust RPT
Realty.

Hasbro is expected to post a dip in third-quarter revenue as demand across the toy industry
softens, while the writers' and actors' strike will pressure its entertainment segment revenue.
Investors will look out for the impact of the Hollywood strike on the overall revenue outlook
and holiday consumer demand.
    
Royal Caribbean Cruises is expected to post a rise in third-quarter revenue as it benefits from
robust demand for cruise vacations. Investors will watch out for booking commentary and the
impact on costs from higher fuel prices.

Gary Gensler, chair of the U.S. Securities and Exchange Commission, is expected to participate
in a discussion at the U.S. Chamber of Commerce about his agency's plans to mandate
climate-related disclosures from publicly traded companies.

Digital Realty Trust, which owns and manages data center assets, is expected to report a rise in
third-quarter revenue.

Internet services firm VeriSign is expected to report an increase in its third-quarter revenue
on strong demand for its domain name services.

Juniper Networks is expected to post a fall in third-quarter revenue as service providers have
been cutting back on cloud spending amid an uncertain economy.

Hershey's third-quarter revenue is expected to see a boost from higher prices, even as demand
for its chocolates, sweets and snacks starts to ease. Investors will be focused on the company's
outlook, its comments on weight loss drugs, margins, and any push back on pricing from
retailers.

Chipotle Mexican Grill is expected to post a rise in third-quarter revenue, helped by steady
demand for its burritos and rice bowls even as menu prices rise. Investors will be watching for
the company's outlook, its comments on wage inflation, further pricing plans, and expectations
around an impact on demand from weight loss drugs.
    
Keurig Dr Pepper is expected to post a rise in third-quarter revenues as benefits from price
hikes offset a slowdown in demand. Investors will watch for the soda maker's forecast and its
comments on any potential impact on sales from increased usage of weight loss drugs.
    
Valero Energy is set to report third-quarter results before markets open, with the focus being
on refined product demand outlook, renewable diesel earnings expectations, and capital returns
profile heading into year-end and 2024. 
    
Enphase is expected to report a drop in third-quarter profit as higher rates and a new metering
policy in California weigh in on demand.

Masco is expected to report a drop in third-quarter revenue as demand softens for its home
furnishing products such as paints and plumbings, with sticky inflation discouraging bigger home
improvement projects from consumers. Investors will watch out for comments on raw material
inflation and pricing actions.    
    
Brazil's statistics agency IBGE is scheduled to report the country's annual inflation, as
measured by the IPCA-15 consumer price index, likely increased to 5.04% in mid-October, compared
to 5.00% last month. The country's producer prices data is also due for release. Mexico's
national statistics agency is expected to report the country's seasonally adjusted unemployment
rate was 2.9% in September, compared to 3.0% in August. Chile's central bank is scheduled to
announce its monetary policy decision and is widely expected to cut its benchmark interest rate
to 8.75%.

 (Compiled by Nachiket Tekawade in Bengaluru; Editing by Tasim Zahid)
 ((Nachiket.Tekawade@thomsonreuters.com;))