What to Watch in The Day Ahead: Wednesday, June 25

Tue Jun 24, 2014 2:40pm EDT

(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 . Thomson One users can register at RT/DAY/US. All times in ET/GMT) The U.S. Commerce Department is expected to release its third and final revision of Gross Domestic Product figures for the first three months of year. First-quarter GDP will likely be revised to show the economy contracted at a 1.7 percent annual rate from the previously reported 1.0 percent decline. (0830/1230) The Commerce Department also releases data on new orders for long-lasting goods manufactured in the United States, and financial data firm Markit releases its "flash" gauge of the services sector activity for June. (0830/1230) (0945/1345) Monsanto, the world's largest seed company, is scheduled to report third-quarter results before the bell. It reported higher-than-expected earnings in the previous quarter with its corn business on track to post record volume for the fiscal year. The company had said it expected full-year earnings per share of $5.00 to $5.20 on an ongoing basis and $5.02 to $5.22 on a net basis. Packaged foods company General Mills has been battling increased competition from cheaper store-branded foods and is scheduled to report fourth-quarter results before the market opens. Investors will look for information on how the company plans to revive sales of its U.S. retail business, its largest by revenue. Higher dairy costs and supply chain disruptions earlier this year could hurt the company's profit. A change in consumer attitudes for heavily processed foods is likely to hurt sales for the company and rivals alike. Internet giant Google is expected to unveil new products that extend its reach into wearable devices, automobiles and other devices during its annual developer's conference. Google Fit, the name of a new health service likely to be showcased, will allow consumers to combine the health and personal fitness information collected by electronic bracelets. Google is also expected to demonstrate a new service to integrate Android inside cars and the company may provide an update on efforts to develop software for smartwatches and televisions. Apollo Education, owner of the University of Phoenix, has been struggling with falling enrollments and stricter regulation. The for-profit education industry faces new government regulations that could force colleges to revise course structures or risk losing federal aid if 30 percent or more students default on their loans. Apollo's peer Corinthian Colleges said last week that the Department of Education had stepped up oversight of the company and had asked for information on job placement data, attendance and grades. Investors will be watching for similar comments from Apollo when it reports third-quarter results, and whether the company expects student enrollments to finally pick up. Bookstore chain Barnes & Noble said this month it will develop a tablet with Samsung as it tries to revive its money-losing Nook digital business. The company said in February it was "still studying" the possibility of separating its businesses, which include superstores, college bookstores and Nook. The agreement with Samsung is likely to help cut expenses in the Nook business, helping it become profitable. When the company reports fourth-quarter results before the bell, investors will be looking out for details on cost savings and its full-year forecast. State-backed Royal Bank of Scotland is scheduled to hold its annual shareholders' meeting in Edinburgh. The meeting is likely to be dominated by the issue of whether the bank can remain headquartered in Scotland if the Scots vote for independence. The bank is also expected to face criticism over its treatment of small businesses within its restructuring unit and the slow payout of compensation to small firms. Also in focus will be possible updates on a planned IPO of U.S. business Citizens, restructuring of investment banking operations and eventual return to private ownership. The Argentine government is due to release May industrial production data. Investors are on the lookout for the tenth consecutive monthly decline due largely to weakness in the automobile sector. Also in focus will be implications for the broader economy, which in the first quarter slipped into recession. (1500/1900) (Compiled By Ayesha Sruti Ahmed in Bangalore)