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There are no public events on the schedule for the Fed's five
governors but the regional bank presidents have a busy week.
Philadelphia Fed president Charles Plosser speaks on the
economic outlook on Tuesday at the Economic Club of New York.
New York Fed President William Dudley talks about the Puerto
Rican economy the same day at a San Juan accountants' symposium,
while San Francisco Fed President John Williams joins a panel on
the global economy at Stanford University. On Thursday, Richmond
Fed President Jeffrey Lacker addresses a regional business
gathering in Lynchburg, Virginia, about human capital issues,
while St. Louis Fed President James Bullard discusses monetary
policy and income inequality at the Council on Foreign Relations
in New York.
Data next week will likely show signs of housing regaining its
footing after a run-up in mortgage rates stalled the recovery.
Commerce Department data on Tuesday is expected to show new home
sales rising to a 440,000-unit pace from a 433,000-unit rate. On
Wednesday the Commerce Department is expected to report that
durable goods orders were flat in May. It is also expected to
report that the economy contracted at a much steeper 1.7 percent
annual rate instead of the 1.0 percent pace reported last month.
On Friday, the department is expected to report that consumer
spending rebounded 0.4 percent in May after dipping 0.1 percent
the prior month.
Sportswear maker Nike, scheduled to report fourth-quarter
results after the bell on Thursday, warned in March that growing
pressures from weaker currencies in key emerging markets would
take a big toll on its profit in the quarter and into the next
fiscal year. It also said sales in China would be unchanged or
even down slightly, reawakening concerns it was having trouble
finding its bearings in that market after signs of progress in
The Street expect Walgreen's quarterly results on Tuesday to
meet expectations after the drugstore operator's May sales rose
6 percent, helped by strong growth in both front-end and
pharmacy sales. Traffic is likely to remain a challenge in near
term as the company implements pricing changes. Investors will
want to know how purchasing synergies related to the company's
distribution agreement with AmericansourceBergen are
Accenture is likely to report quarterly revenue below analysts'
average estimate on Thursday, according to StarMine. The company
had warned last quarter that weakness in its consulting
business, which brings in more than half of its revenue, would
carry on through the year. Analysts are expecting Accenture to
face pricing pressure in its application service business and
suggested that the company may face hurdles converting
consulting bookings to revenue.
On Tuesday, the House Judiciary Committee's Subcommittee on
Regulatory Reform, Commercial and Antitrust Law is scheduled to
conduct a hearing on the proposed merger of AT&T and DirecTV.
Witnesses testifying at the hearing will include AT&T CEO
Randall Stephenson, DirecTV CEO Michael White, consumer
advocates and American Cable Association representatives on
behalf of smaller cable providers.
Monsanto, the world's largest seed company, is scheduled to
report third-quarter results before the bell on Wednesday. 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.
Cruise operator Carnival, scheduled to report results before the
bell on Tuesday, warned in March that it may report a loss for
the second quarter as it cuts prices and spends more on
advertising to attract customers after onboard mishaps hurt
demand over the past couple of years. Its lower-than-expected
profit forecast was in contrast to No. 2 cruise operator Royal
Caribbean Cruises Ltd, which raised its full-year earnings
forecast in January, saying its ticket sales in Europe were
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 on
Wednesday. Investors will look out 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.
ConAgra Foods warned that its adjusted fourth-quarter profit
would be lower than its forecast, as the company struggles with
its big push into private-label foods and sales fall in its
consumer foods business. When the company reports results before
the bell on Thursday, investors will look for details on its
private brands business, where the company is having trouble
integrating its $5 billion Ralcorp acquisition.
There is emerging evidence of a sector-wide weakness going
beyond the unusual weather, with housing data such as U.S.
housing starts and a drop in mortgage applications pointing to a
loss of momentum. Builders have consistently raised concerns
about stiff credit conditions for buyers and tight supply of
building lots and labor. While Lennar has inched up to become
the second largest homebuilder from third this year, investors
will be keen to know how much longer a large land bank could
keep it immune from other problems and maintain its lead against
other homebuilders when it reports results on Thursday.
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
the Department of Education had stepped up oversight of the
company and had asked for information about job placement data,
attendance and grades. Investors will be watching for similar
comments from Apollo when it reports third-quarter results on
Wednesday, and whether the company finally expects student
enrollments to pick up.
North Dakota Governor Jack Dalyrmple is ratcheting up pressure
on Enbridge, Oneok and other pipeline companies to help curb
flaring pushing them to double efforts to build new gathering
lines across the state's oil fields. At a pipeline conference
in Bismarck on Tuesday, Dalrymple and other state regulators are
expected to launch tough new penalties for existing wells that
flare, which contributes to greenhouse gas emissions, and also
unveil new regulations that should streamline right-of-way
problems that have hobbled pipeline development thus far.
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
and help it become profitable. When the company reports
fourth-quarter results before the bell on Wednesday, investors
will be looking out for details on cost savings and its forecast
for the full year.
Paul Konigsberg, a former accountant for Bernard Madoff who was
indicted last year on charges he helped the convicted swindler
defraud thousands of customers in the Ponzi scheme masterminded
by Madoff, is expected to enter a guilty plea, becoming the 15th
defendant to be convicted in connection with the fraud. The
hearing is before U.S. District Judge Laura Taylor Swain on
Among IPOs scheduled for the week are ServiceMaster Global
Holdings and wearable camera maker GoPro on Thursday, and arts
and crafts retailer Michaels Cos on Friday. GoPro's initial
public offering is expected to raise about $427 million, valuing
the company at up to $3 billion. ServiceMaster Global, which
owns the largest pest control company in the world, Terminix
International, is expected to raise up to $754 million. Its
offering of 35.9 million shares is expected to be priced between
$18 and $21 per share, valuing the company at up to $3 billion.
Michaels Cos is expected to raise up to $528 million. Its
offering of 27.8 million shares is expected to be priced at
between $17 and $19 each and will value the company at up to $4
On Tuesday, Mexico's inflation numbers will reveal whether the
rate continued to ease in early June off a seven month low of
3.44 percent notched in the first half of May. Economic activity
data out the same day will shed light on economic activity in
April, after March figures registered a 0.81 percent contraction
month on month. On Friday, May trade balance data will show
whether Mexican factory exports continued to rise after
expanding by 2.13 percent in April, when consumer imports surged
at their fastest pace in over a year.
MONDAY, JUNE 23
France's leading power equipment and train manufacturer, Alstom,
has to decide on General Electric's $16.9 billion bid for its
energy assets. GE in late May agreed to extend the deadline from
June 2 to June 23, to allow for continued negotiations with the
French government. The deadline could bring some finality to the
deal saga, in which German rival Siemens has teamed up with
Japan's Mitsubishi for a rival bid.
The National Association of Realtors is expected to report that
home re-sales increased to a 4.73 million-unit pace in May from
a 4.65 million-unit pace. (1000/1400)
Micron Technology is scheduled to report fiscal third-quarter
results as Wall Street looks for strength in solid-state drives
and signs of stability in a lackluster PC industry. Micron's
stock has surged 30 percent in the past three months reflecting
optimism about demand for DRAM and flash memory chips, but a
miss from the chipmaker could spark a selloff.
Data from Mexico will show whether unemployment continued easing
in May, after cooling off of an over one year high the prior
month. (0900/1300) Separately, Argentina is due to release
current account and gross domestic product figures for the first
(Compiled By Ayesha Sruti Ahmed in Bangalore)