What to Watch in The Day Ahead; Friday, August 1

Thu Jul 31, 2014 2:28pm 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) Chevron Corp, the second-largest U.S. oil company, is expected to report a jump in second-quarter profit, as asset sales in Chad and elsewhere offset spiking currency charges. U.S. non-farm employers likely expanded their payrolls by 233,000 workers in July, marking another month of strong jobs growth, while economists forecast the jobless rate holding steady at a near six-year low of 6.1 percent. (0830/1230) Separately, ISM's manufacturing gauge and data on consumer sentiment and construction spending is expected to be released. (1000/1400) The Commerce Dept is expected to release Construction Spending and Personal Income for June. (0830/1230) (1000/1400) United States-Michigan sub indexes Final for July are scheduled to be released. (0955/1355) Separately, Federal Reserve Bank of Dallas is likely to issue its Trimmed Mean PCE price index for June. (0000/0400) Also, the U.S. auto industry is scheduled to report July sales. (0000/0400) Procter & Gamble is likely to report fourth-quarter results before the bell. Net sales in the past two quarters have remained flat, increasing pressure on P&G to launch innovative products and streamline its businesses. It has also been widely speculated that P&G is set to re-enter the adult incontinence products market in a bid to expand its portfolio. Investors will keep an eye on what P&G is doing to improve margins and market shares in its key categories and progress on its 5-year, $10 billion restructuring plan that it announced in February 2012. Hilton, whose brands include Conrad and Waldorf Astoria, is due to report second-quarter results. The hotelier said in May it expected higher room rates and occupancy to allow it to deliver strong results for the year. Investors will be looking for updates to that forecast. ArcelorMittal, the world's largest steel producer, is scheduled to release its second-quarter figures. Improved profit is expected by investors. The company cut world consumption outlook last time, partly due to Russia. A new exchange-traded fund known as the "iBillionaire" index is set to begin trading, with the intent of enabling mom and pop investors to cash in on the investment ideas of some of the world's wealthiest, from Warren Buffett to Carl Icahn. The iBillionaire index, which was introduced last fall, is constructed from the stock picks disclosed in 13F filings by these big money investors. While the ETF seeks to piggyback on their ideas and put them into a low-cost wrapper, one shortcoming is it only includes long positions and is remiss of shorting and day-to-day active management. Weyerhaeuser, the timber conglomerate, is expected to report a slightly lower-than-expected second-quarter profit, hurt by higher transportation costs and lower prices in its timberland business. However, the company said in April it expects earnings to rise in its wood products business, its biggest. The company said in May it would spin-off its real estate company in connection with the "Reverse Morris Trust" deal with TRI Pointe Homes. Spirit Aerosystems Holdings is expected to report better-than-expected quarterly results as aircraft makers such as Boeing and Airbus booked higher orders. The company is also expected to provide an update on the status of the fuselages supplied to Boeing that were damaged in a train derailment last month. Investors will also be looking for comments on a rumored sale of its fabrication business to GKN Aerospace. CBOE Holdings, operator of the biggest stock-options market, is expected to report results amid a drop in second-quarter volume. Analysts are watching the earnings as the company has beaten estimates the last 15 quarters. Average daily volume in June fell 11 percent from a year earlier, following a 5 percent drop in May. In a bid to attract European business, CBOE extended trading hours for VIX futures to nearly 24 hours a day. Japanese electronics maker Sharp is likely to announce its results for the first quarter. Israel-based Mobileye NV, which is backed by Goldman Sachs Group Inc, Fidelity Investments and BlackRock, expects to price a U.S. initial public offering of ordinary shares at $17-$19 each. The IPO is expected to raise up to $527.3 million, and the company is expected to be valued at about $4 billion at the higher end of the IPO price. Mobileye makes collision-avoidance software and equipments that are used in more than 3 million vehicles made by automakers including BMW and General Motors. Enbridge, Canada's largest pipeline operator, is expected to report slightly higher second-quarter earnings. The RBC Canadian Manufacturing Purchasing Managers' index, a measure of manufacturing business conditions, is scheduled to be released for August. The index had a reading of 53.5 last month. (0930/1330) China's factory activity, excluding Hong Kong and Macau, likely expanded at a faster pace in July, as recent stimulus measures kick in. The official PMI and HSBC/Markit PMI are both scheduled to be released.(2100/0100) Separately, Markit's final release of Euro Zone-PMI Manufacturing, covering thousands of factories across the euro zone, is scheduled to be released. (0400/0800) Brazil's statistics agency is expected to release its report on June's industrial output. (0800/1200) Separately, HSBC Purchasing Managers' Index for Brazil's manufacturing sector for the month of July is scheduled to be released. High labor costs, poor infrastructure and a hefty tax burden still weigh heavily on Brazil's manufacturers, whose lackluster performance has weighed on economic growth. (0900/1300) Separately, Peru's state statistics agency's inflation figures for July are expected to be released. The annual inflation rate has run slightly above the upper limit of the central bank's 1-3 percent target range so far this year. (0100/0500) (All analysts' estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Nandi Kaul in Bangalore; Editing by Sriraj Kalluvila)

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