What to Watch in the Day Ahead - Tuesday, April 23

W. R. Berkley

22/04/2024 19:29

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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Among automakers in the U.S., analysts expect Tesla's first-quarter revenue to drop when the
carmaker releases its report card. The revenue drop will mark the first fall in nearly four
years after deliveries in the first quarter fell. Wall Street also expects CEO Elon Musk to
provide guidance on the future of autonomy software, the Robotaxi project and the affordable car
program. General Motors is also scheduled to report its first-quarter results. GM's biggest
challenge will be explaining to investors where profit growth will come from in the months ahead
as EV growth slows.

S&P Global is due to report flash U.S. PMIs for April. The flash manufacturing PMI reading is
expected to be 52, compared to 51.9 in the previous month. The flash services PMI likely came in
at 52, compared to 51.7 in the previous month. Meanwhile, a report from the Commerce Department
is likely to show new home sales rose to a seasonally adjusted annual rate of 670,000 units in
March from 662,000 units in February. Separately, the Federal Reserve Bank of Philadelphia is
scheduled to issue a Non-manufacturing Business Outlook Survey for April.

Visa is expected to report a rise in second-quarter profit, helped by resilient consumer
spending on dining out and travel. The summer season is shaping up to be one of the best in
recent years, and will also help the world's largest payment processor's revenue outlook for the
current quarter. Analyst and investor focus is expected on executive comments on a hit to
earnings from the interchange fees settlement and competition arising from Capital One's $35
billion deal to buy Discover Financial.  

PepsiCo is expected to post a rise in first-quarter revenue, boosted by steady demand for its
pricey sodas and snacks. Investors will look for comments on further price hikes, easing costs,
impact on demand due to the conflict in the Middle East, and a shift in consumer demand.

United Parcel Service is expected to report a decline in first-quarter profit, as small package
delivery demand remains subdued and higher costs tied to the company's new labor contract with
the Teamsters union trim margins.
    
General Electric is expected to report higher first-quarter profit, but the focus will be on the
company's plans as a standalone aerospace company following the spin-off earlier this month.

US defense contractor Lockheed Martin is expected to report a lower first-quarter profit amid
supply constraints. 

Texas Instruments will report first-quarter results. Investors will focus on indicators of
demand from industrial and automotive customers as well as consumer electronics end markets.

Mattel is expected to report a rise in first-quarter revenue, which would be early signs that
demand for its toys and dolls has begun to recover. Investors will watch for comments on
consumer trends, margin recovery, cost savings initiatives, and any forecast that it provides.

Philip Morris International is scheduled to publish its first-quarter results, and investors
will be looking for fresh details about the hotly anticipated U.S. launch of its flagship heated
tobacco device, IQOS, in the second quarter.

When Danaher reports its first-quarter results, investors will focus on the performance of its
respiratory diagnostics and life sciences units and closely watch for comments around demand for
life sciences tools from smaller biotech companies.

Copper giant Freeport McMoRan is likely to post a jump in earnings for the first quarter due to
rising prices for the red metal.

Insurer W R Berkley is scheduled to report its first-quarter earnings. Analysts expect the
firm's profit to jump, helped primarily by a surge in investment income.

Payments firm Fiserv is expected to report a jump in first-quarter profit as consumer spending
continues to be robust.

Quest Diagnostics is reporting its first-quarter results, and investors will look for color on
the performance of the company's base business, excluding COVID-19 during the quarter and any
changes to the laboratory operators' 2024 outlook.

Computer storage devices maker Seagate is due to report its third-quarter earnings. The company
is also expected to forecast fourth-quarter revenue growth, after about eight quarters of
decline, on the back of recovery in the PC market.

CoStar Group is expected to forecast second-quarter revenue above Wall Street estimates as the
National Association of Realtors settlement might spur up home sales, bringing in more traffic
to homesales.com website.

NASA Chief Bill Nelson sits down with Reuters in Mexico City to talk about U.S.-Mexico
collaboration on airborne science, including greenhouse gas and tropospheric emissions,
wildfires, and water management.

 (Compiled by Shreya Sabharwal in Bengaluru; Editing by Ravi Prakash Kumar)
 ((Shreya.Sabharwal@thomsonreuters.com;))