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Johnson & Johnson (NYSE:JNJ) is expected to report moderately higher earnings as it kicks off the
first-quarter earnings season for large U.S. drugmakers, bolstered by cost cuts and growing
sales of its treatments for cancer, arthritis and psoriasis. But investors will want insights
from J&J on just how badly its Remicade arthritis treatment will be hurt by Pfizer Inc (NYSE:PFE)'s
recently approved biosimilar.
Goldman Sachs Group Inc (NYSE:GS) is likely to report a decline in first-quarter profit as it continues to
battle weak capital markets, trading revenues and investment banking fees amid uncertainty over
U.S. interest rates, China's slowing economy, and low oil prices. Shareholders will look for
details on the bank's exposure to energy loans, outlook on underwriting income and plans to
overcome interest rate uncertainty.
Intel Corp (NASDAQ:INTC) is expected to report a rise in first-quarter revenue, which will also be above
analysts' estimates, according to Thomson Reuters StarMine data. The world's largest chipmaker,
which will change its reporting structure this quarter, will look to calm investor worries about
the slowing pace of growth in its data center business. Intel, which had issued
weaker-than-expected guidance for the quarter, has been hurt by a global slowdown in PC sales.
Housing starts, as measured by the U.S. Commerce Department, likely slipped in March as
single-family home construction retreated from an eight-year high. But an expected rebound in
building permits should indicate that the housing market remains on solid ground and a bright
spot amid signs economic growth almost stalled in the first quarter. A Reuters survey of
economists forecast groundbreaking on new housing projects fell to a seasonally adjusted annual
pace of 1.17 million units last month from 1.18 million units in February. Building permits are
forecast rising to a 1.20 million-unit pace from 1.18 million in February. (0830/1230)
UnitedHealth Group Inc (NYSE:UNH) leads the pack of health insurer earnings, and reports first-quarter
earnings. With their starting position, UnitedHealth's report often sets the tone for other
insurers and has an impact on shares of Aetna (NYSE:AET) and Anthem. Last fall the company said it might
abandon the Obamacare exchanges in 2017.
Struggling online search and advertising company Yahoo (NASDAQ:YHOO) Inc's first-quarter profit is likely to
drop more than analysts' estimtes, according to Thomson Reuters StarMine data. The company,
which faces stiff competition from Google (NASDAQ:GOOGL) and Facebook (NASDAQ:FB), has been weighed down high payments to
partners and websites which send readers to Yahoo's site.
Omnicom Group Inc (NYSE:OMC) is expected to report first-quarter revenue below analysts' expectations,
according to Thomson Reuters StarMine data. The advertising company, which gets nearly half its
revenue from outside the United States, is expected to be hurt by a strong dollar. Investors
and analysts will be looking out for Omnicom's forecast for the second quarter and the full
year, as well as details on possible share repurchases.
Researchers at the American Association of Cancer Research meeting will present data on
Bristol-Myers Squibb Co's high profile immunotherapy drug Opdivo in head and neck cancer, a
potential new use for the drug already helping patients with advanced melanoma and lung cancers.
VMware Inc is expected to report first-quarter profit below analysts average estimate, according
to Thomson Reuters StarMine data. The software maker in January forecast lower-than-expected
2016 revenue and profit, suggesting its strong growth in new businesses was not enough to
compensate for weakness in its traditional server-virtualization software. Investors will be
looking for growth in new businesses, such as NSX, which makes networking more efficient.
Lawyers for the Federal Trade Commission and Staples Inc (NASDAQ:SPLS) square off for final arguments in the
fight over whether Staples should be allowed to merge with smaller rival Office Depot Inc. The
government says that the deal will hurt competition in the delivery of office supplies for big
firms who contract to buy office supplies.
MGM Resorts International is scheduled to price the $975 million initial public offering (IPO)
of its carve-out MGM Growth Properties LLC in what will be the biggest IPO of the year. This
will be the first of three non-biotechnology IPOs this week, as the market closely watches to
see if the IPO window continues to stay open after BATS nudged it open last week, in its $253
million IPO.
Fund managers, investors and lawyers meet at the 13D Monitor Active-Passive Investor Summit to
talk activist investing as ever more hedge funds are trying to play a bigger role in the
companies they manage. Jeffrey Smith whose Starboard Value fund plans to unseat the entire board
at Yahoo, including its CEO, will speak as will Ed Garden, chief investment officer at Trian
Fund Management, which recently took a big stake in General Electric (NYSE:GE).
Canadian Infrastructure Minister Amarjeet Sohi will speak about the role public-private
partnerships will play in the government's C$120 billion 10-year infrastructure plan. Government
officials say they are talking to the country's largest pension funds about investing in
billions of dollars worth of infrastructure projects to help stimulate the economy.
Canadian province Manitoba holds its 41st general election. The long-ruling New Democrat
government led by Greg Selinger is expected to lose power in the Western Canadian province known
for crop production and manufacturing. The Progressive Conservatives are leading the polls and
have said they will reduce provincial sales tax if they come to power.
Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins will come
before the House of Commons Standing Committee on Finance. Lawmakers are likely to press them on
the strength of the Canadian economy and the appropriate level for the Canadian currency.
LIVECHAT-U.S. EARNINGS CHAT with Lipper Alpha Insight's Greg Harrision
Greg Harrision takes questions on early reports by U.S. companies for the first quarter as
anxious investors puzzle over America's growth prospects. (1100/1500) To join the discussion,
click here: