(The Day Ahead is an email and PDF publication that includes the day's major stories and
events, analyses and other features. To receive The Day Ahead, Eikon users can register at
DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT)
WEEK AHEAD
Markets will hopefully start a bit of a celebratory period after the S&P 500's best week in a
year in what's overall been a flat, meandering market through most of 2015. The Thanksgiving
week is a notoriously quiet one, with people trying to get out of town as quick as possible, and
so the usual trends remain in place - a higher dollar, higher short-rates, flattish long rates
and modest improvement in stocks as investors look forward to getting that first rate hike "out
of the way" come mid-December.
On Tuesday, Hewlett-Packard Co, which split into Hewlett Packard Enterprise Co and HP Inc on
Nov.1, will report combined results for both the companies for the final time. HP Inc, which
houses the legacy printer and PC business, is expected to report better-than-expected
fourth-quarter revenue and profit, according to Thomson Reuters StarMine. The company is
expected to benefit from cost-cutting in the printer business and an expected improvement in the
PC market in 2016. On the other hand, HPE is expected to report a fourth-quarter profit below
analysts' average estimate, according to Thomson Reuters StarMine. HPE, which was considered the
faster-growing of the two, is now marred with concerns about growth.
The U.S. economy likely grew at a fairly decent clip in the third quarter than initially
thought, a sign of resilience that could give the Federal Reserve confidence to raise interest
rate next month. According to a survey of economists, the Commerce Department is likely to
revise gross domestic product up to a 2.0 percent annual rate on Tuesday, reflecting a weaker
drag from inventories and stronger consumer spending than previously estimated. The government
had previously reported that GDP expanded at a 1.5 percent rate in the third quarter. Meanwhile,
economists estimate the index of consumer attitudes, to be released the same day, to rise to
99.5 in November from 97.6 last month. Also on Tuesday, the S&P/Case Shiller composite index of
20 metropolitan is expected to show a steady gain of 5.2 percent in September on a
year-over-year basis. On Wednesday, data for durable goods orders is scheduled to be released.
After a decline in overall orders for durable goods in September, the shipments are projected to
have rebounded by 1.5 percent in October. Later in the day, the University of Michigan's final
November reading on the overall consumer sentiment index is estimated to edge lower to 93.0,
compared with the preliminary reading of 93.1.
Dollar Tree Inc (O:DLTR), the largest U.S. dollar store chain, is expected to report a third-quarter
profit below analysts' estimates on Tuesday, according to Thomson Reuters StarMine. Amid intense
competition from big box retailers such as Target Corp (N:TGT) and Wal-Mart Stores Inc (N:WMT), Dollar Tree's
margins have been suffering as it spends on integrating Family Dollar (N:FDO) stores, which have been
struggling with pricing, merchandising and store layout issues.
Campbell Soup Co is expected to report first-quarter revenue slightly below analysts' estimates
on Tuesday, according to Thomson Reuters StarMine. As consumer tastes shift toward less
processed foods, the company has tried to lift sales by increasing its organic food offerings,
removing artificial flavors from its products, and buying companies in faster growing
categories.
Upscale jeweler Tiffany & Co's third-quarter profit and revenue are expected to beat analysts'
estimates by a slight margin on Tuesday, according to Thomson Reuters StarMine. Analysts say the
company has to weather near-term pressures, heightened by recent attacks in Europe which can
further deter spending in the important holiday quarter. However, they say Tiffany is more of a
long-term success story, and attributes this to the company's impressive profit margins.
Investors will look out for any forecast from Tiffany and comments on when it expects headwinds
to mitigate. On the same day, Signet Jewelers Ltd is expected to report better-than-expected
third-quarter sales and profit, as it attracts U.S. customers with its lower-priced products and
discounts.
On Tuesday, Mexico's inflation data for the first half of November will be released, after
consumer prices hit a record low of 2.47 percent in early October. The Mexican central bank will
release the current account balance for the third quarter on Wednesday. The country's
unemployment data and trade balance data for October will be released on Friday. On Thursday,
Brazil is expected to post a current account deficit of $3.9 billion, compared with $3.076
billion in September.
ON MONDAY, NOVEMBER 23
U.S. meat processor Tyson Foods (N:TSN) Inc's fourth-quarter profit could come in slightly below
analysts' average estimate, according to Thomson Reuters StarMine. The company said on Thursday
it will stop operations at two of its plants in the United States, affecting about 880
employees. However, analysts said strong international sales in the quarter and lower pork
prices should help offset the hit to margins due to high cattle costs and price cuts because of
delay in beef shipments.
GameStop Corp (N:GME), the world's largest retailer of video games and related products, is expected to
report third-quarter revenue and profit well below analysts' average estimate, according to
Thomson Reuters Starmine. The company had said it expected robust revenue growth in the second
half but the growth is expected to be weighted to the fourth quarter with the launch of highly
awaited games such as "Star Wars: Battlefront" and "Fallout 4". However, analysts remain
concerned about the same-store sales growth amid the influence of digital download and hardware
or console sales trends.
U.S. home resales likely fell in October after hefty gains in the prior month. A survey of
economists forecast existing home sales dropping 2.0 percent to an annual rate of 5.40 million
units. September's sales pace of 5.55 million units was the second highest since 2007. The
housing market recovery has been constrained by a persistent shortage of houses for sale, which
has driven up prices and sidelined first-time buyers. (1000/1500) Meanwhile, financial data firm
Markit's preliminary U.S. manufacturing Purchasing Managers' Index probably inched lower to 53.9
in November from 54.1 in October. (0945/1445)
Mexico is scheduled to release the retail sales data for September. Retail sales had risen 1.5
percent in August from the previous month, marking four consecutive months of increases,
pointing to a modest recovery in domestic spending in Latin America's No. 2 economy. (0900/1400)
LIVECHAT - Currencies Watch with Marc Chandler, Global Head Markets Strategy at Brown Brothers
Harriman
Marc Chandler, a strategist and blogger, delivers his take on the dollar as the Fed appears
ready to raise rates for the first time in a decade. (1000/1500) To join the Global Markets
Forum, click here http://bit.ly/1kTxdKD
(Compiled By Nayyar Rasheed in Bengaluru; Edited by Don Sebastian)
events, analyses and other features. To receive The Day Ahead, Eikon users can register at
DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT)
WEEK AHEAD
Markets will hopefully start a bit of a celebratory period after the S&P 500's best week in a
year in what's overall been a flat, meandering market through most of 2015. The Thanksgiving
week is a notoriously quiet one, with people trying to get out of town as quick as possible, and
so the usual trends remain in place - a higher dollar, higher short-rates, flattish long rates
and modest improvement in stocks as investors look forward to getting that first rate hike "out
of the way" come mid-December.
On Tuesday, Hewlett-Packard Co, which split into Hewlett Packard Enterprise Co and HP Inc on
Nov.1, will report combined results for both the companies for the final time. HP Inc, which
houses the legacy printer and PC business, is expected to report better-than-expected
fourth-quarter revenue and profit, according to Thomson Reuters StarMine. The company is
expected to benefit from cost-cutting in the printer business and an expected improvement in the
PC market in 2016. On the other hand, HPE is expected to report a fourth-quarter profit below
analysts' average estimate, according to Thomson Reuters StarMine. HPE, which was considered the
faster-growing of the two, is now marred with concerns about growth.
The U.S. economy likely grew at a fairly decent clip in the third quarter than initially
thought, a sign of resilience that could give the Federal Reserve confidence to raise interest
rate next month. According to a survey of economists, the Commerce Department is likely to
revise gross domestic product up to a 2.0 percent annual rate on Tuesday, reflecting a weaker
drag from inventories and stronger consumer spending than previously estimated. The government
had previously reported that GDP expanded at a 1.5 percent rate in the third quarter. Meanwhile,
economists estimate the index of consumer attitudes, to be released the same day, to rise to
99.5 in November from 97.6 last month. Also on Tuesday, the S&P/Case Shiller composite index of
20 metropolitan is expected to show a steady gain of 5.2 percent in September on a
year-over-year basis. On Wednesday, data for durable goods orders is scheduled to be released.
After a decline in overall orders for durable goods in September, the shipments are projected to
have rebounded by 1.5 percent in October. Later in the day, the University of Michigan's final
November reading on the overall consumer sentiment index is estimated to edge lower to 93.0,
compared with the preliminary reading of 93.1.
Dollar Tree Inc (O:DLTR), the largest U.S. dollar store chain, is expected to report a third-quarter
profit below analysts' estimates on Tuesday, according to Thomson Reuters StarMine. Amid intense
competition from big box retailers such as Target Corp (N:TGT) and Wal-Mart Stores Inc (N:WMT), Dollar Tree's
margins have been suffering as it spends on integrating Family Dollar (N:FDO) stores, which have been
struggling with pricing, merchandising and store layout issues.
Campbell Soup Co is expected to report first-quarter revenue slightly below analysts' estimates
on Tuesday, according to Thomson Reuters StarMine. As consumer tastes shift toward less
processed foods, the company has tried to lift sales by increasing its organic food offerings,
removing artificial flavors from its products, and buying companies in faster growing
categories.
Upscale jeweler Tiffany & Co's third-quarter profit and revenue are expected to beat analysts'
estimates by a slight margin on Tuesday, according to Thomson Reuters StarMine. Analysts say the
company has to weather near-term pressures, heightened by recent attacks in Europe which can
further deter spending in the important holiday quarter. However, they say Tiffany is more of a
long-term success story, and attributes this to the company's impressive profit margins.
Investors will look out for any forecast from Tiffany and comments on when it expects headwinds
to mitigate. On the same day, Signet Jewelers Ltd is expected to report better-than-expected
third-quarter sales and profit, as it attracts U.S. customers with its lower-priced products and
discounts.
On Tuesday, Mexico's inflation data for the first half of November will be released, after
consumer prices hit a record low of 2.47 percent in early October. The Mexican central bank will
release the current account balance for the third quarter on Wednesday. The country's
unemployment data and trade balance data for October will be released on Friday. On Thursday,
Brazil is expected to post a current account deficit of $3.9 billion, compared with $3.076
billion in September.
ON MONDAY, NOVEMBER 23
U.S. meat processor Tyson Foods (N:TSN) Inc's fourth-quarter profit could come in slightly below
analysts' average estimate, according to Thomson Reuters StarMine. The company said on Thursday
it will stop operations at two of its plants in the United States, affecting about 880
employees. However, analysts said strong international sales in the quarter and lower pork
prices should help offset the hit to margins due to high cattle costs and price cuts because of
delay in beef shipments.
GameStop Corp (N:GME), the world's largest retailer of video games and related products, is expected to
report third-quarter revenue and profit well below analysts' average estimate, according to
Thomson Reuters Starmine. The company had said it expected robust revenue growth in the second
half but the growth is expected to be weighted to the fourth quarter with the launch of highly
awaited games such as "Star Wars: Battlefront" and "Fallout 4". However, analysts remain
concerned about the same-store sales growth amid the influence of digital download and hardware
or console sales trends.
U.S. home resales likely fell in October after hefty gains in the prior month. A survey of
economists forecast existing home sales dropping 2.0 percent to an annual rate of 5.40 million
units. September's sales pace of 5.55 million units was the second highest since 2007. The
housing market recovery has been constrained by a persistent shortage of houses for sale, which
has driven up prices and sidelined first-time buyers. (1000/1500) Meanwhile, financial data firm
Markit's preliminary U.S. manufacturing Purchasing Managers' Index probably inched lower to 53.9
in November from 54.1 in October. (0945/1445)
Mexico is scheduled to release the retail sales data for September. Retail sales had risen 1.5
percent in August from the previous month, marking four consecutive months of increases,
pointing to a modest recovery in domestic spending in Latin America's No. 2 economy. (0900/1400)
LIVECHAT - Currencies Watch with Marc Chandler, Global Head Markets Strategy at Brown Brothers
Harriman
Marc Chandler, a strategist and blogger, delivers his take on the dollar as the Fed appears
ready to raise rates for the first time in a decade. (1000/1500) To join the Global Markets
Forum, click here http://bit.ly/1kTxdKD
(Compiled By Nayyar Rasheed in Bengaluru; Edited by Don Sebastian)