(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)
U.S. economic growth is expected to have accelerated in the second quarter, with the preliminary
gross domestic product growth reading expected to be 3.2 percent on an annualized basis.
(0830/1230) The Commerce Department will also release the profit figures for U.S. corporations
for the second quarter. (0830/1230) Separately, the number of Americans filing new applications
for unemployment benefits is expected to fall by 3,000 to a seasonally adjusted 274,000.
(0830/1230) Meanwhile, contracts to buy previously owned U.S. homes are likely to have increased
by 1.0 percent in July after falling unexpectedly by 1.8 percent in June. (1000/1400)
Discount retailer Dollar General Corp (NYSE:DG) is expected to report second-quarter revenue in line with
the average analyst estimate. The company, which is set to be dethroned as the top U.S. discount
retailer by store count after losing a takeover battle for smaller rival Family Dollar Stores (NYSE:FDO)
Inc to Dollar Tree Inc (NASDAQ:DLTR), expects to speed up store openings this year. As Dollar General reported
better-than-expected profit in the first quarter as well, investors will look for a raise in the
company's full-year forecast.
The Economic Policy Symposium "Inflation Dynamics and Monetary Policy" kicks off in Jackson
Hole. Investors' attention may shift to the Rocky Mountains, where policymakers are due to
gather for the Fed's conference of central bankers, finance ministers, academics and financial
market participants. Fed chair Janet Yellen is not expected to attend, raising the prospect that
other Fed officials may be more tight-lipped about the likelihood of the first rate increase in
almost a decade.
Luxury jeweler Tiffany & Co (NYSE:TIF) is expected to report second-quarter sales and profit in line with
analysts' expectations. Tiffany is heavily dependent on macroeconomic factors such as the
strength of the dollar and other currencies, which determine tourists' spending behavior. A
decline in Chinese and Japanese visitors to the United States has taken some shine off sales at
stores such as the company's flagship Fifth Avenue outlet in Manhattan. But Tiffany has said
that it saw an uptick in tourist spending in Europe as weaker euro and pound encourage spending
in the region. Investors will be look for comments on the impact of the recent yuan devaluation
in China and any forecast for the current year. Smaller rival Signet Jewelers Ltd also reports
second-quarter results on the same day.
J.M. Smucker Co, the maker of Folgers coffee and Jif peanut butter, is expected to report
first-quarter sales above the average analyst estimate. The company cut prices for most of its
Folgers and Dunkin' Donuts coffee brands in the United States by 6 percent in July, partially
reversing last year's price hikes, to woo back customers as green coffee costs fall. Investors
want to know if lower coffee prices helped boost the company's U.S. coffee retail sales, which
have fallen for the past 10 quarters. They are also looking out for cost-cutting steps following
Smucker's $3.2 billion acquisition of pet food maker Big Heart Pet Brands.
Troubled mall-based retailer Aeropostale Inc is expected to report its 11th straight quarterly
loss, according to Thomson Reuters I/B/E/S. A combination of falling mall traffic, weak demand
for its casual apparel and heavy promotions is expected to hurt the company. Aeropostale has
closed underperforming stores, cut costs and it is betting on a merchandise overhaul to drive
sales in the crucial back-to-school shopping season. When the company posts its second-quarter
results, investors will look for trends so far in the third quarter, forecast and commentary on
sales in the back-to-school season.
Software maker Autodesk Inc (NASDAQ:ADSK) is expected to report second-quarter revenue slightly below
analysts' expectations. The company, which makes computer-aided design software AutoCAD,
forecast second-quarter revenue below analysts' estimates in May, citing a strong dollar. It
also cut its full-year revenue forecast. Autodesk has been moving to cloud subscriptions from a
license-based model. This is hurting the company as subscriptions bring less money upfront.
Investors will be looking for growth in subscriptions and billings.
GameStop Corp (NYSE:GME) releases its results for the second quarter. The world's largest retailer of video
game products is expected to benefit from the June release of "Batman: Arkham Knight", the
latest in the "Batman: Arkham" series by Warner Bros Interactive Entertainment. Investors worry
about the impact of digital game downloads on GameStop's software sales. But the company
reported an increase in mobile game downloads in the first quarter, a trend expected to continue
to the second quarter.
Toronto Dominion Bank and Canadian Imperial Bank of Commerce will report third-quarter results.
Toronto Dominion is expected to gain from its U.S. retail footprint, while Canadian Imperial
Bank of Commerce will be hoping to squeeze out growth from its domestic business. Investors will
look for any impact of the fall in oil prices on the lenders.
LIVECHAT: TRADING CANADA - Investing in Canada while the loony swoons
Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver,
joins Global Markets Forum at 1030 ET/1430 GMT for a chat about Canada as an investment target
in a period of global currency upheaval. To join the Global Markets Forum, click here http://bit.ly/1kTxdKD
LIVECHAT: MARKETS with Alastair McCaig, market analyst, IG Index
Alastair McCaig, market analyst at IG Index joins at 0500 ET/0900 GMT for a look at how to
navigate the markets as the clock ticks down to the September Federal Reserve policy meeting. To
join the Global Markets Forum, click here http://bit.ly/1kTxdKD
(All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise)