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The U.S. Department of Commerce is scheduled to release its second preliminary gross domestic
product figures for the first quarter and will likely revise prior estimates to reflect a 0.5
percent decline. A prior report showed Q1 GDP growth nearly flat at 0.1 percent, its slowest
pace since Q4 2012. (0830/1230) The Commerce Department is also expected to report that pending
home sales went up 1.0 percent in April. (1000/1400) Meanwhile, the Labor Department is likely
to report that initial filings for jobless claims declined to 318,000 from 326,000. (0830/1230)
Federal Reserve Bank of Cleveland President Sandra Pianalto is scheduled to speak before the
Inflation, Monetary Policy, and the Public conference. (0830/1230) Separately, Kansas City
Federal Reserve President Esther George, who has consistently pushed for the central bank to
stop easing and start thinking about tightening policy, gives a dinner address at a monetary
policy conference at Stanford University.
A steadily increasing membership base has spurred Costco's comparable store sales growth since
last year as U.S. buyers look for cost-saving options amid a weak economy. Monthly same-store
sales have been strong in the year so far, signaling the company has not been affected by the
harsh winter weather that many other retailers have flagged for weak results. When Costco
reports third-quarter results, investors will be focusing on new membership signups, membership
renewal rates and the rise in number of executive members. They will also be watching out for
the effect of currency fluctuations on the company's international operations, which are
expected to rub some shine off quarterly sales.
Canadian Imperial Bank of Commerce is expected to report declining second-quarter profit due
largely to a pre-announced C$420 million writedown in its First Caribbean International Bank
unit and additional loan losses. The bank's results will also reflect the impact of the sale of
half of its Aeroplan credit card portfolio to TD Bank. Analysts expect a profit of C$2.07 per
share, excluding items.
Chipmaker Avago Technologies is likely to report second-quarter results below analysts' average
estimates, according to StarMine data. The company had warned of lower revenue last quarter,
saying it lost revenue from a smartphone customer. Analysts had speculated that the customer
could be Apple Inc.
Tata Motors, India's biggest automaker by revenue, is expected to report an 18 percent rise in
fourth-quarter net profit, according to analyst estimates, helped by strong sales of its Jaguar
and Land Rover cars in China and the Asia-Pacific region. High car ownership costs in a sluggish
economy and the absence of new product launches have hit Tata's sales in its home market,
increasing the automaker's dependence on its UK unit, Jaguar Land Rover Ltd, to prop up profits.
The company expects to launch two new models this fiscal year for its domestic market and is
also expected to start its new manufacturing facility in China.
Teen apparel retailer Abercrombie & Fitch is expected to post another decline in sales when it
reports first-quarter results before the bell as the harsh winter weather in parts of the United
States hurt traffic to stores in February and March. The company said earlier this year that it
would lower prices to battle competition and it has been expanding its merchandise to include
shoes and larger clothes sizes for women to attract more shoppers. Investors will be looking out
for any commentary on when sales are expected to pick up and for new initiatives to boost sales.
Data analytics software maker Splunk had forecast first-quarter adjusted margins would shrink
8-10 percent as it invests in product development and hires more sales people. However, when the
company reports results after the bell, analysts expect revenue to beat expectations due to
strong growth in licensing revenue as corporate and government clients spend more on indexing
and analyzing data.
Sanderson Farms is expected to report second-quarter results before the bell. Investors will be
looking for updates on supplies, export demand and the impact of higher retail chicken prices.
Chinese solar company ReneSola is expected to report a much smaller first-quarter loss, helped
by improving demand and prices for its panels from China. Investors will also want to know if
the China improvement is sustainable and they will look for the company's U.S. shipment forecast
after it was named a respondent in the U.S. Department of Commerce's anti-dumping investigation.
Nimble Storage's first-quarter profit is likely to beat Wall Street estimates, according to
StarMine data, as demand for its storage products rise. The company is gaining market share at
the expense of traditional storage equipment providers such as NetApp.
Canada's current account deficit is expected to narrow in the first quarter after widening to
its fourth-largest level ever in the final months of 2013.
(Compiled by Ayesha Sruti Ahmed in Bangalore)