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Verizon Communications (N:VZ) is expected to report fourth-quarter
revenue above Wall Street consensus. The wireless company is
likely to have added more subscribers as it invests heavily in
promotions. Verizon, which bought AOL in June, might also be
scouting for more acquisitions, with CFO Francis Shammo saying
in December the company could look at buying Yahoo (O:YHOO). Investors
will be watching out for any comments on Verizon's capex plans
for 2016.
The number of Americans filing for unemployment benefits likely
fell last week, showing little signs of a pick-up in layoffs
despite a recent sharp slowdown in economic growth and financial
markets turmoil. Weekly jobless claims likely slipped to 278,000
from 284,000 the prior week, according to a Reuters survey. The
claims data covers the survey week for January nonfarm
payrolls. (0830/1330)
Starbucks Corp (O:SBUX), the world's biggest coffee chain operator, is
likely to report first-quarter sales slightly above analysts'
average estimate. The company, which had a couple of robust
quarters last year, delivered a disappointing profit forecast
for the holiday quarter, citing a strong dollar. Known for
starting its fiscal year with conservative estimates, the
company has also locked in prices on more than 90 percent of its
coffee needs for 2016. Investors would be looking for commentary
on sales forecast for the second quarter and for same-store
sales growth in China.
Schlumberger Ltd is expected to report a steep fall in
fourth-quarter profit as plunging oil prices weigh on demand for
oilfield services. The world's No.1 oilfield services provider
warned in October that it would incur a restructuring charge in
the latest quarter due to additional job cuts. Schlumberger,
whose comments are closely monitored for a glimpse into industry
trends, is expected to reiterate a sluggish forecast for North
America.
Higher costs and a strong dollar may push American Express (N:AXP) to
report a decline in profit for the third quarter. Markets
outside the United States account for about a sixth of the
company's revenue. Investors will seek updates from the world's
largest credit card issuer on new co-branded deals after the
termination of several co-branded relationships hurt revenue
last year. Fidelity Investments became the latest to drop its
agreement with AmEx.
Property and casualty insurer Travelers Cos Inc is expected to
report a flat fourth-quarter profit, hurt by insurance pricing,
which was affected most severely in the quarter. However, lower
catastrophe losses and stable underwriting income are expected
to have helped the results.
Union Pacific (N:UNP), the No. 1 U.S. railroad, will post
fourth-quarter results at a time when the industry is suffering
from a freight recession due to falling commodity prices and
North American manufacturers face a possible industrial
recession. The railroads also face the possibility of another
round of consolidation if Canadian Pacific's bid for Norfolk
Southern results in a deal, which the company's CEO has vowed to
fight against. The market will be looking for comments on the
overall economy, prospects for manufacturers and any fresh
comments about mergers in the industry.
United Continental Holdings Inc, the second-largest U.S. airline
by capacity, is scheduled to report its fourth-quarter results
and provide guidance for early 2016. Investors will seek clarity
on United's capacity plans and whether it sees additional
turbulence in 2016 from low-cost rivals, diminished demand from
oil-industry clients and traveler jitters since the November
Paris attacks. Also reporting Q4 earnings will be Southwest
Airlines Co. Investors will look out for comments on the
airline's plans to grow internationally and in Dallas, where a
judge recently ordered that the low-cost airline must share its
gates with bigger rival Delta. Southwest is also expected to
provide an update on its fuel hedging, which cost it hundreds of
millions of dollars last year.
Canadian Pacific Railway Ltd, Canada's second-largest railroad,
will announce 2015 last-quarter results but focus will be on the
company's pursuit of Norfolk Southern (N:NSC) in the United States. Last
month, Norfolk rejected Canadian Pacific's revised bid,
reiterating that it was grossly inadequate and created
substantial regulatory risks and uncertainties.
Potash Corp Chief Executive Jochen Tilk and Agrium CFO Steve
Douglas will make presentations at the CIBC conference in
Whistler, British Columbia. Among other things, investors will
be looking at any commentary on acquisitions by the fertilizer
makers. Potash was rebuffed by Germany's K+S last year.
Brazil payroll data is expected to show about 1.5 million
Brazilians lost their jobs in 2015, in a year when the economy
contracted at its steepest pace in 25 years. Meanwhile in
December, Brazil's economy likely shed a net 655,000 payroll
jobs. (0800/1300)
DAVOS LIVECHAT-GLOBAL ECONOMIC OUTLOOK with Kaushik Basu, chief
economist, World Bank
Kaushik Basu is Chief Economist at the World Bank and prior to
this, he was Chief Economic Adviser to the Government of India.
Join us live from the World Economic Forum in Davos for a
discussion on the Global Economic Outlook and the World Bank's
newly released 2016 World Development Report, which makes the
case that while the internet, mobile phones and other digital
technologies are spreading rapidly throughout the developing
world, the anticipated digital dividends of higher growth, more
jobs, and better public services have fallen short of
expectations. (0630/1130) To join the Global Markets Forum,
click here