What to Watch in the Day Ahead - Tuesday, April 28

Wall Financial

27/04/2020 19:30

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Alphabet Inc reports its first-quarter results. Wall Street is expecting top line numbers from
Google's parent to be hit by a slowdown in digital ad spending due to the coronavirus outbreak.

Market participants will be focusing on a two-day meeting by the U.S. Federal Reserve. In recent
months, the Fed has slashed rates to near zero, restarted bond purchases and rolled out an
unprecedented range of programs to keep credit flowing and shore up business and household
confidence.

A raft of pharma companies, including Pfizer Inc, Merck & Co Inc, Centene Corp and Novartis AG
are scheduled to post their first-quarter results. Pfizer is expected to provide an update on
the impact of the COVID-19 outbreak on its businesses. Investors would also be looking out for
progress on the company's coronavirus drug development programs and details on its deal with
Mylan. Merck's sales of cancer drug Keytruda are expected to remain strong despite disruptions
caused by the COVID-19 pandemic. Investor focus will also be on Merck's sales in international
markets such as China and any changes to its full-year forecast. Investors will also focus on
Centene's comments about COVID-19 related costs and possible benefits due to a decline in
healthcare spending by Americans. Meanwhile, Swiss drugmaker Novartis AG is seen reporting sales
rose from $11.1 billion in 2019 on the strength of skin and arthritis drug Consentyx and its
heart failure medicine Entresto. Chief Executive Val Narasimhan may also update progress on
testing generic hydroxychloroquine in coronavirus patients.

Ford Motor Co is expected to report a first-quarter loss. The automaker will discuss efforts to
shore up its cash position. The company previewed a big loss related to COVID-19 shutdowns.

PepsiCo Inc is expected to report a rise in revenue for the quarter ending in March, but all
eyes will be focused on any forecast the company makes about demand in the second quarter after
rival Coca-Cola Co warned of sales taking a hit as restaurants, theaters and other venues closed
due to the coronavirus pandemic.

U.S. consumer confidence index is expected to have dropped to 87.9 in April from a reading of
120.0 in the previous month. The S&P CoreLogic Case-Shiller composite index of home prices in 20
metropolitan areas is also scheduled for release. Home price growth in 20 metro areas is likely
to have increased 3.3% in February from a year ago, compared with a gain of 3.1% in January.
(0900/1300)

Caterpillar Inc is scheduled to post its first quarter earnings. The heavy equipment maker is
expected to report a steep drop in earnings, hurt by business disruptions caused by the
coronavirus outbreak.

Starbucks Corp releases its second-quarter earnings. Focus will be on the coffee chain's
business in China, where it was forced to close nearly all of its stores due to the coronavirus
crisis earlier in the year. Several cafes in Asia are now open and investors will look for
updates on the business and consumer behavior. Updates on its U.S. market, especially any
comments on when stores are expected to reopen, will also be key. Yum China Holdings Inc is also
scheduled to post it first-quarter results.

Harley-Davidson Inc is expected to report lower first-quarter profit, hurt by the coronavirus
pandemic that has forced it to temporarily suspend production in the United States.

Oreo maker Mondelez International Inc is likely to post an increase in first-quarter revenue,
thanks to consumers stockpiling snacks and chocolates ahead of the coronavirus-related lockdown
in the United States and some European countries. Investors will be on the lookout for potential
revisions to 2020 outlook and comments on demand so far in the current quarter.

Xerox Holdings Corp is expected to post a drop in first-quarter revenue, hurt by weaker demand
for its printers and photocopiers as more businesses digitize their work.

Chipmaker Advanced Micro Devices Inc is expected to post a rise in revenue for the first
quarter. Investors will be on the lookout for any commentary on the economic uncertainty caused
by the coronavirus pandemic and its impact on forecast.

Southwest Airlines Co is scheduled to report first-quarter results that will show the initial
impact of the coronavirus pandemic on earnings and travel demand, which airlines say has
virtually disappeared and may not fully return before the end of the year.

Wells Fargo & Co shareholders will vote on a number of proposals at new CEO Charlie Scharf's
first meeting at the company. The meeting has drawn large protests every year since the 2016
sales practices scandal erupted. Meanwhile, HSBC Holdings plc reports its first quarter earnings
and expected to show a heavy hit from the economic impact of the new coronavirus in its twin
homes of Hong Kong and London. UBS Group AG also presents its first-quarter results. Investors
will be looking out for signs of how the coronavirus pandemic is likely to impact business.

BP Plc reports its first quarter results which are set to be dominated by the dramatic drop in
demand for energy and collapsing oil prices due to coronavirus.

Other major companies, including United Parcel Service Inc and 3M Co are also scheduled to post
their first-quarter results, while D.R. Horton Inc is expected to release full second-quarter
results after reporting preliminary results on April 7.

Canadian companies including commercial real estate service provider Colliers International
Group Inc and wood products company West Fraser Timber Co Ltd are scheduled to post earnings for
the first quarter.

Brazil's statistics agency IBGE releases mid-April IPCA-15 consumer price index. The consumer
prices had increased 0.02% in the month to mid-March. Separately, Mexico is slated to release
trade balance data for March. The country had posted a $1,429 million trade surplus in February
when adjusted for seasonal swings. In non-seasonally adjusted terms, it posted a trade surplus
of $2,911 million.

LIVECHAT-FED WATCH
Michael Pearce, Senior U.S. Economist, Capital Economics, speaks on expectations for the Federal
Reserve’s upcoming meeting, the outlook for U.S. monetary policy, and what’s ahead for the U.S.
economy. (1000/1400) To join the conversation, click here https://refini.tv/2P8N0Wp

 (Compiled by Sourav Bose in Bengaluru; Editing by Shailesh Kuber)
 ((sourav.bose@thomsonreuters.com;))