(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)
Wal-Mart Stores Inc (NYSE:WMT) is expected to report a fall in earnings in the second quarter, reflecting
the impact of its $1 billion investment in increasing wages, and a stronger dollar. Analysts on
average expect earnings per share of $1.12, down from $1.21 in the same quarter a year earlier.
Wal-Mart has forecast U.S. same-store sales growth of about 1 percent for the 13 weeks ending
July 31. Investors will be focused on what impact it sees from the devaluation of the yuan and
the slowdown in the Chinese economy.
Offprice retailer TJX Cos Inc is likely to report profit and sales above analysts' average
estimates in the second quarter. TJX is expected to be helped by lower gas prices and wage
growth. A hike in the number and quality of brands in its stores and merchandise that reflects
popular fashion trends is also expected to drive sales. Investors will look for third-quarter
forecast, commentary on industry trends and plans to expand in international markets.
Home Depot Inc (NYSE:HD), the world's No. 1 home improvement chain, is likely to report second-quarter
sales below analysts' average estimate. Strong housing market data over the last few months is
expected to have kept overall demand for home improvement goods steady. However, record rainfall
in May and June in large parts of the United States is likely to have kept a lid on sales of
products in the home exterior improvement categories, such as paint and gardening supplies.
U.S. housing starts likely increased in July, fueled by strong demand for rental apartments,
setting a solid foundation for growth early in the third quarter. The house market recovery is
gaining traction after being sluggish for much of last year, with a report showing confidence
among builders in August rose to its highest level since November 2005. Economists expect
housing starts to have advanced to a seasonally adjusted pace of 1.19 million units last month.
Meanwhile, the permits for future home construction are forecast to have slipped to 1.232
million-unit rate in July from 1.34 million-unit rate in the previous month.(0830/1230)
Chile's economy is expected to have contracted in the second quarter. The quarter-on-quarter
performance is forecast to have declined 0.1 percent after a 1 percent growth in the previous
quarter. Separately, Argentina releases the unemployment rate for the second quarter.
LIVECHAT: FOREX Comment with Adam Button, Currency Analyst & Editor, Forex Live
China's exchange rate moves gave emerging markets a jolt, prompting many to predict a
wide-ranging set of competitive devaluations among Asia's export engines. Join Forex Live
commentator Adam Button at (1000/1400) for a chat about FX markets and how they are positioned
to weather rising U.S. rates against the backdrop of a devaluing Chinese yuan. To join the
Global Markets Forum, click here: http://bit.ly/1kTxdKD
(All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise)