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New U.S. applications for unemployment benefits likely held steady last week at levels
consistent with sustained labor market strength. Initial claims for unemployment benefits are
near levels last seen in the early 1970s and there is little room for further declines as the
labor market approaches full employment. According to a Reuters survey, first-time applications
for state unemployment benefits were unchanged at 269,000 last week. (0830/1330) In a separate
report, the Treasury Department is likely to post a budget deficit of $68 billion in November,
compared to a gap of $136 billion in the previous month. (1400/1900) Meanwhile, the import and
export prices are expected to have dropped 0.7 percent and 0.3 percent, respectively in
November. (0830/1330)
Photoshop maker Adobe Systems (O:ADBE) Inc is expected to report fourth-quarter revenue and profit in
line with estimates after it lowered its guidance for 2016 in October. The company said it
expects to take a hit from the strong dollar and as its "last material businesses are
transitioning to ratable revenue." Analysts are looking for further comments on the transition
and guidance.
German carmaker Volkswagen (DE:VOWG_p) holds a news conference "on the current status of the investigation
into the Diesel issue." Volkswagen understated carbon dioxide emissions on many fewer vehicles
than initially feared. Chief Executive Matthias Mueller and Chairman Hans Dieter Poetsch will
publish intermediate results from the inquiries. They will not reveal names of those
responsible, but may explain why the company failed to find the wrongdoing.
Southwest Airlines Co Chief Executive Gary Kelly addresses a society of aviation executives,
investors and analysts in New York. The low-cost carrier has said it expects to earn less money
per mile this quarter than it previously forecast because it has sold cheaper fares to undercut
competition in cities such as Dallas. Kelly is expected to elaborate on where Southwest is
feeling the most pressure.
Canada's industrial capacity use in the third quarter is likely to have increased to 81.9
percent, offsetting its fall for two consecutive quarters. Capacity utilization use in the
second quarter was 81.3 percent. (0830/1330) Separately, market analysts expect new home prices
to have edged up by 0.1 percent in October from September. (0830/1330)
LIVECHAT: FED FOCUS with Charlie Bilello of Pension Partners LLC
Awards-winning director of research at investment firm Pension Partners, Bilello, lays out the
reasons why the Federal Reserve needs to focus more on the real world economy as U.S.
policymakers look likely to raise short-term interest rates. To join the Global Markets Forum,
click here