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Federal Reserve Chair Janet Yellen delivers semi-annual monetary policy testimony before the
House Financial Services Committee in Washington in what will be her first major appearance of
the year and since the Fed began raising rates. The meeting will give the best insight to date
on whether the central bank feels it can proceed with a rate tightening cycle or will be waylaid
by problems around the world including the oil rout and slumping Chinese growth. (1000/1500)
Later, Federal Reserve Bank of San Francisco President John Williams speaks before the 2016
National Interagency Community Reinvestment Conference, "Pathways to Economic Opportunity,"
sponsored by the Federal Reserve Bank of San Francisco, Federal Deposit Insurance Corp, Office
of the Comptroller of the Currency and the Community Development Financial Institutions Fund.
(1330/1830)
Cisco Systems Inc (O:CSCO) is expected to report a fall in second-quarter revenue and profit, according
to Thomson Reuters StarMine. The network equipment maker may have been hurt by a slowdown in
order growth and weakness in its enterprise business outside the United States. A strong dollar
probably affected demand for Cisco's enterprise products in Asia-Pacific, Canada and Latin
America. Cisco has been actively buying other companies to beef up its enterprise and wireless
security businesses.
Microblogging service provider Twitter (N:TWTR) Inc is expected to report a rise in fourth-quarter
profit, beating analysts' estimate, according to Thomson Reuters StarMine. Chief Executive Jack
Dorsey, who took the top job in 2015, has rolled out new services and products, but analysts and
investors remain wary. Investors will look for details on the company's strategy for fiscal 2017
following a recent management shake-up.
The U.S. Treasury Department's budget report is expected to show a budget surplus of $45 billion
in January, according to analysts polled by Reuters. The budget ran in red with a $14 billion
deficit in the prior month. (1400/1900)
Time Warner Inc (N:TWX) is expected to report a fall in fourth-quarter profit, hurt by a strong dollar.
The owner of cable channels including TNT and TBS Cartoon Network had also warned of lower ad
revenue due to a drop in ratings of its key domestic entertainment networks. Investors will look
for details on a sale or spinoff of the company's premium cable channel, HBO.
Mylan (O:MYL) NV's profit is expected to beat the average analyst estimate for the sixth straight
quarter, according to Thomson Reuters StarMine. The drugmaker was helped by higher sales of its
generic drugs in North America. Investors will be keen to hear about Netherlands-based Mylan's
deals strategy after shareholders of smaller rival Perrigo Co (N:PRGO) Plc snubbed its $26 billion
hostile bid late last year.
Electric car maker Tesla Motors Inc (O:TSLA) will report fourth-quarter results after markets close.
Analysts expect quarterly earnings of 8 cents per share on revenue of $1.79 billion. Chief
Executive Elon Musk could offer insights on future model plans and on production of the new
Model X. Investors are counting on the Model X, an SUV designed to compete with those from
luxury automakers, to make the company profitable after years of losses.
Upscale grocer Whole Foods Market Inc (O:WFM) is expected to report first-quarter profit below analysts'
estimates, according to Thomson Reuters StarMine. The company's sales have been hit due to fewer
customer visits, despite price cuts, as big-box retailers and supermarkets increasingly sell
organic foods at comparatively lower prices. Investors will look for current-quarter trends,
comments on the industry and forecast.
Humana Inc (N:HUM) is seen reporting fourth-quarter earnings above analysts' expectations, according to
Thomson Reuters StarMine. The fifth-largest U.S. health insurer is expected to have benefited
from strength in its large Medicare Advantage business. The company, which is being bought by
larger rival Aetna Inc (N:AET) in a $37 billion deal, may also be helped by a weak flu season.
Zynga Inc is expected to report fourth-quarter revenue above analysts' estimates, according to
Thomson Reuters StarMine. Founder Mark Pincus, who returned as chief executive in 2015, has been
focusing on cutting costs and reducing the "FarmVille" maker's slate of games.
A volatile stock market and plummeting oil prices are expected to dent investments when
alternative asset managers KKR & Co LP and Carlyle Group (O:CG) LP report fourth-quarter earnings. KKR
is expected to announce that its earnings per share more than doubled in the final quarter,
while Carlyle is expected to announce a 45 percent annual drop in earnings.
Kinross Gold, the world's fifth-biggest bullion miner by output, is expected to report a bigger
fourth-quarter loss on lower gold prices and production. Kinross, which has been under pressure
to boost its exposure to safer mining jurisdictions, said late last year that it would spend
$610 million in cash to buy two mining assets in Nevada from Barrick Gold and it also struck an
exploration joint venture with Barrick for one property. Some viewed that price tag as steep,
but Kinross said the mine and properties had big potential that wasn't fully appreciated by the
market because they were a relatively small part of Barrick.
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