What to Watch in the Day Ahead - Thursday, May 16

Vizio Holding

15/05/2024 19:31

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    Walmart is expected to post a rise in first-quarter sales and raise its outlook for the
year, as the retail bellwether benefits from demand for its low-priced groceries, higher
discounts, and some pull forward of tax refunds in March. Investors are looking for updates on
its acquisition of smart-TV maker Vizio, which received calls from FTC for more information, and
the operating income growth it sees from Walmart and Sam's Club membership and advertising.
 
Federal Reserve Bank of Richmond President Thomas Barkin is expected to be interviewed live on
CNBC. (1000/1400) Cleveland Fed’s President Loretta Mester is scheduled to speak on the economic
outlook at the Wayne Economic Development Council Briefings for Business (B4B) event. (1200
/1600) Additionally, Atlanta Fed President Raphael Bostic will likely speak on the economic
outlook in a moderated conversation hosted by the Jacksonville Business Journal. (1550 /1950)
Meanwhile, Philadelphia Fed President Patrick Harker is likely to speak on "The Economic Impact
of Higher Education and Healthcare Institutions” and is due to participate in a conversation at
hybrid 2024 Anchor Economy Conference. (1030/1430) Separately, Federal Reserve Board Vice Chair
for Supervision Michael Barr is likely to testify at U.S. Senate Banking, Housing, and Urban
Affairs Committee hearing on oversight of financial regulators. (1000/1400)
 
Investors eyed slowing consumer price inflation in April with relief, underpinning expectations
for Federal Reserve interest rate cuts this year. Next on the U.S. economic front, the Commerce
Department's Census Bureau is scheduled to report that single-family housing starts likely rose
to 1.420 million in April from 1.321 million in March. Building permits are expected to rise by
1.485 million units in April after adding 1.467 million units in the month before. Meanwhile,
the Labor Department is likely to publish initial claims for state unemployment benefits, which
are projected to fall 11,000 to a seasonally adjusted 220,000 for the week ended May 11. The
number of people receiving benefits after an initial week of aid is expected to reach 1.785
million for the week ended May 4. A separate report from the Labor Department is expected to
show import prices likely rose 0.3% in April, while export prices are forecast to gain 0.4% for
the month. Additionally, the Philadelphia Fed's business index likely slipped to a reading of 8
in May from 15.5 in April. Furthermore, the Federal Reserve is set to release industrial
production data, which is expected at 0.1% in April.
 
Semiconductor equipment supplier Applied Materials is expected to report a decline in its
second-quarter revenue, likely to be hit by weak demand due to U.S. export restrictions on the
shipments of advanced chips and chipmaking equipment to China. Investors will be looking for
commentary on the company's China shipments.
 
Deere is expected to post a slump in second-quarter revenue as demand for its tractors and
combines take a hit from a softening agriculture sector, with farmers pulling back on spending
due to lower crop prices and farm incomes. Investors will be watching for the company's
forecast, its comments on dealer inventories, production and margins.
 
Revenue and profit growth at search engine giant Baidu is expected to be flat compared to last
year, as a weak Chinese economy weighs on ad spending. Investors will closely watch updates on
its AI chat tool Ernie Bot, including its sales.
 
JD.com is expected to release first-quarter results at a time when Chinese consumers remain
cautious in the face of broader economic uncertainties. The Chinese e-commerce giant is expected
to post a rise in first-quarter revenue boosted by steady demand thanks to hefty discounts.
 
Video game publisher Take-Two Interactive is expected to report a fall in fourth-quarter
revenue, hit by weak demand for its popular titles like "Grand Theft Auto" and "NBA 2k" as
consumers cut back on spending amid a challenged economic outlook.
 
Under Armour is expected to post a drop in fourth-quarter revenue as weak consumer demand
impacts sales in the apparel maker’s wholesale channel. Investors will watch out for comments on
the benefits of the company’s ongoing cost reduction measures and strategies for discounts for
the year.
 
Canada Goose is expected to report a rise in fourth-quarter revenue, helped by a rebound in
sales in China, even as the luxury parka maker sees weak demand in the U.S. Investors will eye
comments on consumer sentiment in China and North America, margin recovery, and the forecast it
provides for the next fiscal year.
 
Canada's Pembina Pipeline is scheduled to hold an investor day. Energy industry participants are
waiting for news of a final investment decision on the Cedar LNG project, which Pembina has said
it will make by June.
 
On the Latin American front, inflation in Brazil, as measured by the IGP-10 price index, is
expected to show a rise of 0.95% in May, after falling 0.33% in April.
        

 (Compiled by Anjana Jayakrishnan Nair in Bengaluru; Editing by Ravi Prakash Kumar)
 ((AnjanaJayakrishnan.Nair@thomsonreuters.com;))