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The U.S. Federal Reserve's Federal Open Market Committee two-day meeting on interest rate
concludes, followed by the statement. (1400/1900) Separately, new U.S. single-family home sales
likely rose for a third straight month in December, the latest suggestion that housing remains
on firmer footing even as the economy is slowing. According to a Reuters survey of economists,
new home sales increased 2 percent to a 500,000-unit pace in December. (1000/1500) The Commerce
Department report will come on the heels of data last week showing a strong rebound in sales of
previously owned homes in December.
Facebook's fourth-quarter earnings is expected to be slightly above consensus, according to
Thomson Reuters StarMine. The world's largest social network reported a surprisingly strong
profit growth last quarter, helped by a spike in mobile users and advertising. The company has
been spending aggressively on hiring and building data centers. Analysts have said the growth in
video-views presents the most significant near-term opportunity for Facebook (O:FB) as it looks to grab
a bigger slice of the TV advertising market.
Boeing (N:BA) posts fourth-quarter results and its first annual tally under Chief Executive Dennis
Muilenburg, who took over on July 1. Analysts and investors are looking for confirmation that
the 787 program generated positive cash flow in the quarter and that there was an improvement in
Boeing's defense businesses, where it has been aggressively cutting costs as budgets shrink.
Boeing might announce plans to reduce 777 production rates to reflect the fact that it hasn't
sold enough of those to carry it through to the successor 777X model. Boeing said last week it
would further cut production of its slow-selling 747-8 and take a charge worth 84 cents per
share after tax, prompting analysts to adjust their estimates.
Qualcomm (O:QCOM) is expected to report first-quarter profit above analysts' expectations, according to
Thomson Reuters StarMine. The company said it would not break itself up after it delivered its
fourth profit warning in November. The chipmaker, which faces intense competition from Taiwanese
and Chinese companies, said its agreements with two major Chinese customers were taking longer
than anticipated. Investors will look for indications about the state of the chipset business as
well as commentary on cost control in the face of the tough competition.
Biogen (O:BIIB) Inc, which leads the U.S. multiple sclerosis market with five drugs for the condition, is
expected to report fourth-quarter profit and revenue just above Wall Street estimates. Analysts
are worried that the biotechnology company may not be able to meet sales expectations for its
oral MS drug, Tecfidera, whose sales have been slowing. Investors will also be looking to see
whether Biogen's direct-to-consumer marketing campaign and overall restructuring, announced in
October, has borne any fruit.
Data storage giant EMC (N:EMC), which is in the process of being acquired by Dell, is expected to post
fourth-quarter revenue in line with market estimates, according to Thomson Reuters StarMine. EMC
has seen dwindling foreign sales as a result of the stronger dollar and weakness in Asia-Pacific
and Latin America. Investors will watch out for the company's forecast for 2016 as well as
updates on the structure of the proposed buyout by Dell.
PayPal Holdings Inc is expected to report a fourth-quarter profit in line with analysts'
estimate, according to Thomson Reuters StarMine, as the payments company continues to struggle
with fierce competition from Stripe and Square Inc (N:SQ). Investors remain on the fence about PayPal's
customer base. However, analysts expect some upside to revenue from PayPal's partnership with
Macy's and are looking for an update on a potential agreement with Visa Inc (N:V).
E-commerce company eBay is expected to report fourth-quarter profit and revenue slightly above
market estimates, according to Thomson Reuters StarMine. Ebay, which raised its full-year
earnings forecast in October, also posted a strong profit last quarter that helped allay
concerns about its prospects after spinning off PayPal. Investors will want to see if eBay has
sustained that momentum in the latest quarter as well, in terms of gross merchandise volume as
well as new active buyers.
Cessna jet maker Textron Inc (N:TXT) is expected to report a rise in its revenue and profit in the
fourth quarter on higher sales in the Textron Aviation business. However, investors will be
watching the V-22 deliveries at Bell, and for updates on Textron's alliance with Boeing.
Investors will also want to see whether slowing demand for business jets impacts the company's
bottom line. Also slated to report fourth-quarter is United Technologies (N:UTX), the maker of Pratt &
Whitney aircraft engines.
Health insurer Anthem Inc reports quarterly results, and the focus will be on any progress it is
making with regulators in presenting the case for its acquisition of Cigna (N:CI). Last week, rival
UnitedHealth reported a better-than-expected quarterly profit and said 2016 was off to a great
start. Earlier in Jan, Anthem said it expected a higher net profit in 2016 and that it was
"optimistic" about getting antitrust approval for the merger.
Heart device maker St Jude is likely to report fourth-quarter results short of Wall Street
expectations, according to Thomson Reuters StarMine. The company, which reported preliminary
results earlier this month, has been seeing lower sales in its cardiac rhythm management
business which sells pacemakers and heart failure monitoring systems. The company has said these
pressures were partially offset by growth in its neuromodulation business and strong sales from
the recently-acquired Thoratec.
Norfolk Southern (N:NSC), the No. 4 U.S. railroad, faces a double dilemma as it reports fourth-quarter
results. On the one hand, it is struggling to cope with a freight recession and the risk of an
industrial recession that threatens the continent's manufacturers. On the other, it is in the
middle of a takeover challenge from Canadian Pacific. Investors will be looking for commentary
on what the company is doing to successfully navigate the freight downturn and why it presents a
better prospect for shareholders as a standalone company.
Factory automation systems maker Rockwell Automation (N:ROK) is expected to report lower first-quarter
sales and profit, hurt by slowing industrial production growth in the energy and mining sectors.
Rockwell, which gets nearly half of its revenue from outside the United States, also forecast
2016 sales and profit below analysts average estimate, citing continued weakness in emerging
markets.
Cliffs Natural Resources Inc is expected to report a loss in its fourth quarter, compared with a
year-ago profit. The diversified miner was hurt by a steep fall in commodity prices caused by
waning demand from China. The company, which has cut jobs and shut mines to lower costs, exited
the North American coal business and is now looking to focus on its iron-ore business in the
United States. Separately, oil producer Hess Corp (N:HES) is also expected to post a sharp drop in
fourth-quarter profit as tumbling oil prices erode margins across its portfolio.
Canadian telecom and media company Rogers Communications will report fourth-quarter earnings
just two days after saying it will cut 200 jobs in its margin-squeezed media unit. Canada's
wireless market leader is balancing the push to add more mobile phone customers and charging
each of them more with the likelihood of fewer cable subscribers for large packages of channels
as its cable television business braces for rule changes.
Canadian IT services firm CGI Group Inc reports first-quarter results and holds its annual
general meeting following what some analysts call a solid finish to fiscal 2015. The acquisitive
company is expected to continue its 'build-and buy' growth strategy in 2016.
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