What to Watch in the Day Ahead - Thursday, November 7

WK Kellogg Co

06/11/2024 19:30

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The Federal Reserve is widely expected to slash its interest rate by 25 basis points following
the conclusion of the two-day-long monetary policy meeting. 

On the U.S. economic front, the Labor Department will show that the initial claims for state
unemployment benefits for the week ending November 2 probably climbed to 221,000 from 216,000 in
the week before. Additionally, the continued jobless claims for the week ended October 26 are
likely to rise to 1.875 mln from 1.862 mln. Meanwhile, the Commerce Department's revised figures
for wholesale inventories are unlikely to show any change from the initial drop of 0.1% in
September. Also, the nonfarm productivity for the third quarter is expected to come in at 2.3%
after a reading of 2.5% in the previous quarter. Separately, the preliminary unit labor costs
are set to rise to 1% in the third quarter, after a 0.4% rise in the second quarter. 

Tapestry is set to post a first-quarter revenue decline hurt by weak sales of Coach Tabby
handbags on the back of soft accessible luxury spending. Investors will look out for comments on
the deal with Capri that was blocked recently and strategies to bolster demand. Additionally,
Michael Kors parent Capri Holdings is expected to post a decline in second-quarter revenue, hurt
by sluggish demand for luxury goods. Investors will look for comments on demand, the impact of
the US Judge blocking its merger with Tapestry, as well as annual forecasts. Separately, Ralph
Lauren is expected to report a rise in second-quarter revenue helped by robust
direct-to-consumer sales of its pricey denims and polo shirts.

Froot Loops maker WK Kellogg is expected to post a decline in third-quarter revenue, on slowing
demand for its ready-to-eat breakfast items and snacks. Investors will look out for comments on
restructuring plan updates, annual forecast adjustments, pricing strategies and efforts to
bolster volume. Additionally, chocolate maker Hershey is expected to post a rise in
third-quarter revenue, helped by demand for its pricey chocolates along with spreads and syrups.
Investors will look out for comments on the report that PFAS were present on wrappers, cocoa
price inflation and annual forecast updates.

Consumer health firm Kenvue will report third-quarter results before markets open. Investors
will closely watch the performance of its skin health and beauty business, which includes brands
like Neutrogena and Clean & Clear. Any comments around conversations with activist hedge fund
Starboard will also be in focus.

Rivian is expected to post a drop in third-quarter revenue after it missed analysts' estimates
for third-quarter deliveries. Rivian now expects full-year production to be between 47,000 and
49,000 vehicles, down from its earlier forecast of 57,000 vehicles. The forecast cut means the
company now expects to make fewer vehicles than it did last year. Separately, Lucid is expected
to report a wider loss in the third quarter as the company ramps up production of its line of
luxury sedans.

Oilfield services firm Halliburton reports third-quarter results before the market opens.
Halliburton is expected to post a per-share profit of 75 cents for the period compared with 79
cents a year ago, according to analysts. Separately, Duke Energy is expected to report
third-quarter results before market open, where investors will be watching for any comments on
storm impact and restoration costs, as well as any commentary on data center demand and load
growth forecast.

Warner Bros Discovery is expected to report a fall in revenue in the third quarter, hurt by weak
performance at its studio segment.

Moderna is scheduled to report its third-quarter earnings. Investor focus is expected to be on
the company's launch of its RSV vaccine, sales of its COVID-19 shots and forecast for 2025.
Management commentary on its pipeline of vaccine candidates will also be closely monitored.
Also, Becton Dickinson is expected to give its fourth-quarter results. Investor focus will be on
the performance of its drug delivery devices and surgical equipment. Separately, 3M spin-off
Solventum is expected to report third-quarter results after markets close. Investors are
expected to look out for demand for its wound care and surgical sterilization products.

Carlyle Group is expected to post a year-on-year jump in its third-quarter distributable
earnings driven by strong asset sales across its private equity portfolio.

Pinterest is expected to report higher third-quarter revenue, helped by strong digital
advertising spend on the image-sharing platform.

Block's third-quarter profit is expected to jump when it reports its quarterly earnings.
Analysts will closely watch the gross payment volume growth of its Square business. Separately,
Corpay's third-quarter profit is expected to be ahead of Street expectations when it reports its
quarterly earnings. Analysts will watch out for the business payment firm's fourth-quarter
outlook.

Mettler-Toledo International is expected to report third-quarter results after markets close.
Investors are expected to look out for demand in its key market China.

PG&E Corp is set to report third-quarter earnings before the bell where investors will focus on
potential load growth improvements and the impact of California wildfire risks.

Bombardier is set to report third-quarter results before the bell. The Canadian business jet
maker is expected to post upbeat quarterly earnings on the back of sustained jet demand.
However, investors are also eyeing the company's aircraft deliveries owing to the impact of the
18-day strike at its Mississauga and Waterloo manufacturing facilities in July, amid persisting
supply chain issues in the industry.

Barrick Gold miner is expected to post a rise in quarterly profit, aided by strong gold prices.
Investors would be looking forward to its commentary on costs and M&A plans.

On the Latin American economic front, Mexico's statistics agency INEGI is scheduled to report
inflation figures and producer price index readings for October. The headline inflation is
expected to be at 0.51%, after rising 0.05% in the previous month. On an annual basis, the
inflation is expected to be at 4.72% after rising 4.58% in the previous month. Separately,
Argentina's September industrial output figures are scheduled for release on the same day. Also,
Peru's central bank is likely to lower its interest rate by 25 basis points to 5%.

 (Compiled by Archak Sengupta in Bengaluru; Editing by Vijay Kishore)