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Bank of America is expected to report second-quarter earnings. The bank reported its first loss
in three years in the first quarter thanks to a $6 billion charge tied to legal expenses, and
following reports that it may have to pay between $12 billion and $17 billion to settle
outstanding federal investigations. Investors and analysts are wondering whether the bank will
report another sizable litigation charge in the second quarter. Two other regional banks U.S.
Bancorp and PNC Financial Services Group are also expected to post second-quarter results.
Federal Reserve Chair Janet Yellen is scheduled to deliver a second day of testimony on the U.S.
central bank's semi-annual monetary policy report, this time before the House Financial Services
Committee. (1000 /1400) Separately, Federal Reserve Bank of Dallas President Richard Fisher will
speak on "Monetary Policy and the Maginot Line". (1200/1600)
BlackRock, the world's largest money manager, is scheduled to report second-quarter earnings
before the market opens. Analysts expect the New York-based company, which now manages more than
$4.4 trillion in assets, to earn $4.46 per share, up from $4.15 per share a year ago. Chief
Executive Larry Fink said in June that he stands by his 5-percent organic growth rate target.
The Labor Department is expected to issue the Producer Price Index for June, expecting an
increase of 0.2 percent. (0830/1230) Meanwhile, the Federal Reserve's U.S. manufacturing output
is likely to show a rise of 0.6 percent. Factory production increased 0.6 percent last month
after slipping by a revised 0.1 percent in April. (0915/1315) Separately, the Mortgage Bankers
Association is scheduled to report the seasonally adjusted index of mortgage application
activity. (0700/1100) The Federal Reserve is scheduled to issue its so-called Beige Book.
During the second quarter, eBay Inc faced a series of challenges, including a massive data
breach in its marketplaces division and the departure of the head of its PayPal unit. The
e-commerce company, which is expected to report a profit of 68 cents per share, also saw its
traffic fall after Google updated its search engine, analysts said. Investors will be looking
for insight into how eBay has fortified its marketplaces unit from future attacks. They will
also want clarity on who will lead the company's fast-growing PayPal unit after chief David
Marcus stepped down last month to join Facebook.
Abbott Laboratories is scheduled to release second-quarter earnings before the bell. Wall Street
expects the company to report sharply higher quarterly earnings, following a profit slump the
prior quarter, thanks in part to recovering sales of its infant formulas that were recalled in
Asia last August due to a contamination scare.
SanDisk posts its second-quarter results after the bell as the memory chipmaker's stock surges
on its recent success in selling its own solid-state drives. Investors are keen on an update on
the company's gross margin forecast, as SanDisk uses more of its NAND memory chips to build its
own high-end storage devices for enterprise customers.
Kinder Morgan, the largest oil and gas pipeline, storage and processing company in North
America, is due to report second-quarter earnings and update investors on its nearly $15 billion
in expansion projects.
Yum Brands is scheduled to report second-quarter results. Is Yum's KFC recovery in China still
on track? The fast-food giant gets more than half its overall sales from China, where most of
its 6,300 restaurants are KFCs. Sales slumped badly in KFC China after an avian flu outbreak and
a food safety scare that pummeled demand for chicken last year.
Heart device maker St. Jude Medical, which has beat analysts' average profit estimates for eight
straight quarters, reports its second-quarter results before the bell. Analysts expect the
company to report earnings of $1.00 per share on revenue of $1.44 billion. The market will be on
the watch for any changes to the full-year forecast and if the company has been able to arrest
its slide in the implantable defibrillators market.
Taiwan Semiconductor Manufacturing Co, the world's No.1 contract chip maker, reports its
second-quarter financial results. Analysts, on average, expect a net profit of T$56.4 billion,
compared with T$51.8 billion in the same quarter last year and T$47.9 billion in the
January-March period. The company predicted record sales this quarter, largely due to increased
demand for chips driven by the proliferation of complex features, such as fingerprint sensors
and motion detectors, in smartphones. The firm's recent forecast has been strong and it is
predicting double-digit profit growth this year.
Fewer deliveries of Bell helicopters and costs related to the Beechcraft acquisition are likely
to weigh on Textron's second-quarter results. The world's largest business jets maker is under
scrutiny after a defense department report alleging that the Pentagon overpaid it for its
components by millions of dollars. Textron has said it does not agree with the charges in the
report. Investors, however, will be watching for comments on the alleged over-payment to see if
this could have a material effect on the company.
IT services company iGate is likely to report better-than-expected results for the second
quarter helped by deal wins and customer additions. The company recently won a large deal in
Europe and the management has expressed confidence of winning two other large deals exceeding
$100 million in revenue. Last quarter, iGate forecast a strong second half citing demand in
CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference in New York
City. Some of the biggest investors in the world, including Carl Icahn, Leon Cooperman and
Stanley Druckenmiller, provide their views and opinions on the markets and share their best
investment ideas for the second half of the year. Treasury Secretary Jack Lew will speak before
the Delivering Alpha Conference.
While Bank of Canada is universally forecast to keep its overnight rate at 1 percent, its
language on inflation and growth in its statement will draw the most attention. Twenty-one of 30
analysts polled by Reuters expect Governor Poloz to tone down his concern over low inflation,
given that overall inflation is now over the official target, but a significant minority think
he will instead emphasize continued economic softness and try to avoid saying anything which
would boost the Canadian dollar. The bank will likely lower its second-quarter GDP forecast from
the annualized 2.5 percent it forecast in its April Monetary Policy Report. (1000/1400)
Separately, Statistics Canada's report on May factory sales is expected to show a 1.0 percent
increase from April. (0830/1230)
A motion is expected to be filed for the preliminary approval of a settlement between Apple Inc,
U.S. states and consumers over claims the iPad maker conspired to fix the prices of e-books. The
settlement was announced in June, although terms were not disclosed. Motions for preliminary
approval typically spell out terms of class action settlements.
China's National Bureau of Statistics is scheduled to report second-quarter annual growth. The
economy probably steadied in the quarter with annual growth holding firm at 7.4 percent,
suggesting that a recovery is taking hold as a flurry of government stimulus measures kick in.
The central bank's monetary policy committee, known as Copom, is expected to set Brazil's
benchmark lending rate, which is likely to show an increase of 11 percent. Separately, Brazil's
statistics agency IBGE releases retail sales data expected to show the third straight monthly
drop for the first time in over a decade. (0800/1200)
(Clarification - Omnicom Group Inc is expected to report quarterly results between July 15 and
18. Monday's edition mentioned that the company was scheduled to report on Tuesday, July 15.)
(Compiled By Sourav Bose; Editing by Simon Jennings)