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Warehouse club retailer Costco Wholesale Corp (NASDAQ:COST) is likely to report second-quarter profit and
sales slightly below analysts' average estimate, according to Thomson Reuters StarMine. Falling
grocery prices, a slowdown in sales in January and a strong dollar are expected to have weighed
on sales and margins. The company gets about 27 percent of its revenue from outside the United
States.
Federal Reserve Bank of San Francisco President John Williams will speak on the economic outlook
before the Bishop Ranch Forum in California. Williams, a policy centrist, expects a tightening
labor market to start boosting inflation later this year, making rate hikes an imperative for
coming months. (1100/1600) Also, the Federal Reserve issues its so-called Beige Book, a
compendium of anecdotes on the health of the economy drawn from the central bank's sources
across the nation. It will likely continue to flash mixed signals for the U.S. economy, with
broadly positive momentum expected on jobs and consumer spending, set against further signs of
stress in the manufacturing and energy sectors. (1400/1900)
Data from payrolls processor ADP will likely show that private payrolls increased by 190,000
jobs in February after rising 205,000 in January. (0815/1315)
Teen apparel retailers Abercrombie & Fitch Co and American Eagle Outfitters (NYSE:AEO) Inc report
fourth-quarter results. While Abercrombie & Fitch is expected to report its 12th straight
quarter of falling sales, American Eagle is expected to report fourth-quarter profit and sales
below the average analyst estimates, according to Thomson Reuters StarMine. Retailers had been
hurt by a long spell of warm weather, which has weighed on winter apparel such as coats and
jackets. Teen retailers are also being forced to discount more to lure customers who are
flocking to trendier shops and embracing online shopping.
Canada's Torstar Corp, the owner of the Toronto Star newspaper, is expected to report a fall in
quarterly profit as print advertising revenue continues to slide. The media company's digital
revenue, however, is expected to rise. When the company releases its fourth-quarter results,
investors will look for further cost reduction measures and comments on Star Touch, the tablet
edition of the Star.
Canadian Prime Minister Justin Trudeau will give a keynote speech to an innovation and
sustainability summit where he will discuss his government's plans to invest in green growth.
Brazil's central bank meets to decide its next monetary policy move amid growing pressure to
keep interest rates on hold at 14.25 percent. The bank surprised investors at its last meeting
by keeping rates steady after signaling it was ready to raise borrowing costs to tame a surge in
inflation. A deepening recession is adding pressure to stay put even when inflation climbs to
over 12-year highs.
LIVECHAT on the US business outlook with Kim Rupert of Action Economics
Kim Rupert is managing director for global fixed income at Action Economics and comes to the
Forum to brief members on the significance of the latest economic data, possible Federal Reserve
moves and the global outlook just ahead of the often markets-moving U.S. monthly payrolls
report. (1000/1500) To join the Global Markets Forum, click here (Compiled By Nayyar Rasheed in Bengaluru; Editing by Sriraj Kalluvila)