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Medical device maker Medtronic (NYSE:MDT) Plc is expected to post its first-quarter results in line with
estimates, driven by sales of its cardiac, vascular and minimally invasive products. A plethora
of product launches should allow Medtronic to deliver on its objective of mid-single digit
growth, although investors will be looking to see how its diabetes division has done given the
competitive landscape. Investors will also be curious to see how Medtronic's extra week of sales
in the quarter and continuing currency headwinds have impacted earnings.
The U.S. Commerce Department issues July data for International Trade. The trade deficit likely
narrowed in July as exports rose for the first time in three months, which could further boost
the outlook for the third quarter economic growth. The trade gap probably fell to $42.4 billion
from $43.8 billion in June. Separately, the Labor Department releases weekly data for jobless
claims, expected to have increased 4,000 to a seasonally adjusted 275,000 in the week.
(0830/1230) Also, financial firm Markit releases its final reading of Purchasing Managers Index
for August. (0945/1345) In another report, the Institute for Supply Management projects its
services sector index to have decreased to 58.1 in August from 60.3 in July. (1000/1400)
Campbell Soup Co is scheduled to report its fiscal fourth-quarter results. The maker of brands
such as Pepperidge Farm cookies and Goldfish crackers is struggling to grow as consumer tastes
shift toward less processed foods. In July, Campbell reduced its long-term organic sales growth
forecast to 1-3 percent from 3-4 percent to reflect the slow-growth environment in the packaged
food industry. The company is also cutting costs through job cuts and implementing zero-based
budgeting, which requires managers to justify every cost in each new period, to increase its
margins.
The Governing Council of the European Central Bank (ECB) announces its interest rate decision.
The ECB is expected to cut its inflation forecast, primarily on weak commodity prices and
slowing emerging market growth, another sign that quantitative easing (QE) is not yet working as
planned. The bank's chief economist already flagged that QE may have to be expanded or
accelerated so the bank could start laying the groundwork for more asset buys. Growth, however,
looks to be picking up and lending growth is at its best in two years, offering at least some
hope that the euro zone is slowly getting back on its feet. (0745/1145)
Toys for movie studio Walt Disney's upcoming "Star Wars: The Force Awakens" go on sale in stores
around the world. The toy roll-out is part of a huge merchandising effort by Disney ahead of the
December release of the movie, the first in a new "Star Wars" trilogy. The toys will be
introduced over an 18-hour period in 15 cities and 12 countries. Also, Wal-Mart Stores Inc (NYSE:WMT) said
it would bring forward its holiday layaway program, as the world's largest retailer hopes to get
a jump on year-end demand and fuel sales of Star Wars toys.
Mining equipment maker Joy Global Inc (NYSE:JOY) is expected to report lower third-quarter revenue and
profit as coal miners cut production. The company gets more than 60 percent of its revenue from
coal miners. Investors will look for an update on full-year financial forecast.
Canada's trade balance is forecast to have widened to a deficit of C$1.3 billion in July. With
policymakers looking for a stronger export sector to help drive the economy, focus will be on
whether the sharp gain exports saw in June will be sustained. Analysts will also be watching for
revisions to June's numbers, which had been surprisingly upbeat. (0830/1230)
Financial firm Markit releases August Purchasing Managers Index for Brazilian Services. The
index fell on a seasonally adjusted basis to 39.1 in July, matching a record low from March 2009
in the eight-year data series. Separately, Mexico's national statistics agency releases June
data for gross fixed investment, which is expected to have advanced 6.70 percent, compared with
2.30 percent a year earlier. (0900/1300)
LIVECHAT: TRADING CANADA - Bank of Canada policy outlook
Roland Chalupka, chief investment officer at Fiduciary Trust Canada, joins the Global Markets
Forum (1030 ET/1430 GMT) for a conversation about central bank policy and the impact of Chinese
stock volatility on global markets. To join the conversation, click here: http://bit.ly/1kTxdKD