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LIVECHAT - FX WEEK AHEAD Reuters FX Buzz Analyst Jeremy Boulton discusses G7 currencies and select EM FX pairs. (0800 ET/1200 GMT) To join the conversation, click here here REST OF THE WEEK On Tuesday, Wall Street is expecting Google-parent Alphabet Inc's top line numbers to be hit by a slowdown in digital ad spending due to the coronavirus outbreak. Facebook Inc is expected to report on Wednesday. The social media giant has warned the coronavirus outbreak is undercutting its ad sales, even as more users spend time on the social network due to lockdown orders globally. Apple Inc on Thursday has warned of a shortfall in March quarter sales as the coronavirus outbreak has caused disruption in its manufacturing facilities and retail stores globally. Amazon.com Inc on Thursday is expected to post a rise in quarterly revenue due to a surge in demand for online orders as the coronavirus outbreak kept people locked in their homes. Investors will be on the lookout for any commentary on the impact of the pandemic on business and forecast.
Top U.S. oil producers Exxon Mobil and Chevron report first-quarter financial results on Friday before the market opens, as the coronavirus crisis crashes global demand for oil and refined products. ConocoPhillips, the largest independent oil producer, on Thursday is expected to report a fall in its first-quarter profit and revenue hurt by a collapse in oil prices. Investors will be watching out for further production curtailments and updates on its operations in Malaysia and Libya impacted by the coronavirus pandemic.
On Wednesday, U.S. economic growth for the first-quarter is likely to show that the GDP data narrowed to -4% after growing 2.1% in the fourth quarter. On the same day, pending home sales index data is scheduled to be released. U.S. pending home sales index is likely to have dropped 10% in March, after rising 2.4% in February. On Thursday, data is likely to show that in March, core PCE price index dropped 0.1% in March, after gaining 0.2% in February. Personal income is likely to have dropped 1.5%, after increasing 1.6% in February. Initial jobless claims for the week ended April 20, is expected to have dropped to 3.5 million from 4.427 million in the previous week. On Tuesday, U.S. consumer confidence is expected to drop to a reading of 88 in April, from 120 in March. Data for U.S. construction spending on Friday is likely to show that it dropped 3.5% in March, after falling 1.3% in February.
Federal Open Market Committee begins two-day meeting on interest rate policy, in Washington on Tuesday.
Microsoft Corp on Wednesday, is expected to post a rise in third-quarter revenue, helped by higher sales in its cloud business as more people shift to working from home amid coronavirus-led lockdowns. Twitter Inc on Thursday is expected to post a drop in first-quarter revenue after the social media company flagged a hit to its ad sales due to the coronavirus outbreak. While Qualcomm is expected to report a rise in second-quarter revenue on Wednesday. Investors are mostly interested in forward looking commentary from the world’s biggest mobile chip supplier, as the semiconductor industry braces for a big hit from the coronavirus pandemic. Spotify Technology SA is expected to report on Wednesday a rise in quarterly revenue as more people stay indoors amid the coronavirus outbreak, boosting demand for online entertainment like podcasts. However, investors will be looking at comments on its ad revenue given the broader decline in ad spend.
Boeing is expected to report a quarterly loss, compared with a profit a year earlier, hurt by the 737 MAX jet grounding and the COVID-19 pandemic, which has affected sales of its other jets. Investors will look for comments on any further production cuts Boeing might be contemplating due to a sharp decline in aircraft demand.
Southwest Airlines Co is due to report first-quarter results on Tuesday that will show the initial impact of the coronavirus pandemic on earnings and travel demand, which airlines say has virtually disappeared and may not fully return before the end of the year. Tesla Inc is expected to post a rise in quarterly revenue on Wednesday. Earlier this month, the electric car-maker reported solid deliveries despite the coronavirus outbreak. Investors will be on the lookout for any comments on the pandemic’s impact on the company’s manufacturing and delivery forecast issues which Tesla has not addressed till date. Ford is expected to report a first-quarter pre-tax loss on Tuesday of about $600 million and will discuss its efforts to shore up its cash position. The company on April 13 previewed a big loss related to COVID-19 shutdowns. Harley Davidson Inc on Tuesday is expected to report lower first-quarter earnings hurt by the coronavirus pandemic that has forced it to temporarily suspend production in the United States. General Electric Co, which makes engines for Boeing and Airbus planes, is expected to report lower first-quarter profit and revenue on Wednesday, as coronavirus-led lockdowns hurt demand for jets. Investors will look for cost mitigating actions GE is taking to conserve cash. Husky Energy on Wednesday is expected to report a first-quarter loss as the coronavirus pandemic created weaker demand for refined products and dampened oil prices. The company has already cut its 2020 budget and investors will now focus on how it mitigates the impact on production and benefits from Canada’s proposed C$2.5 billion aid to the industry. Cenovus Energy on Wednesday is expected to report weak refining margins and lower upstream earnings in its first quarter, hurt by a dual shock from the coronavirus outbreak and a price war between oil producing nations. Cenovus has temporarily suspended its crude-by-rail program and investors will look for details about the impact of curtailed volumes. Valero Energy Corp on Wednesday is expected to swing to a loss in the first-quarter as demand for the refiner’s gasoline and jet fuel has crashed because of the lockdowns imposed to curb the coronovirus outbreak. Among other cost cutting moves, investors will want to hear if Valero plans to cut its dividend like some other companies have. TC Energy on Friday is expected to post a slight drop in results, with expectations of lesser crude and natural gas liquids being shipped on its pipelines as producers cut output after the oil price plunge.
Pfizer Inc is set to post quarterly results on Tuesday, when it is expected to provide an update on the impact of the COVID-19 outbreak on its businesses. Investors will also be looking out for progress on the company’s coronavirus drug development programs and details on its deal with Mylan. U.S. drugmaker Merck & Co Inc will report first-quarter earnings on Tuesday and sales of cancer drug Keytruda is expected to remain strong despite disruptions caused by the coronavirus pandemic. Investor focus will also be on Merck’s sales in international markets such as China and any changes to its full-year forecast. AbbVie Inc is expected to report first-quarter results on Friday, with investors focusing on the imminent closing of its Allergan acquisition. Focus will also be on whether AbbVie’s treatments and the products it gains through the Allergan deal, such as Botox, have seen an impact from the COVID-19 pandemic, which has led to the delay of non-essential medical procedures. Centene Corp will report its first-quarter earnings on Tuesday. Investors will focus on the company’s comments about COVID-19 related costs and possible benefits due to a decline in healthcare spending by Americans. Focus will also be on the company’s profit target for the year and its long-term strategy amid the virus outbreak. Anthem Inc is expected to report first-quarter results on Wednesday, with investors focusing on uncertainty around whether COVID-19 will affect the company’s near-term growth. Focus will also likely be on COVID-19 related costs, as well as any changes to the company’s full year outlook. On Wednesday, Humana is set to report first-quarter results on Wednesday when it is expected to provide an update on the COVID-19 impact to its business. Investors would also look out for details on whether the outbreak has had an impact on its benefit expense ratio and any changes to its expectations for the year. Cigna Corp will report its first quarter 2020 results on Thursday. Focus will be on company’s comments on profit pressures due to the impact of increasing unemployment in the United States. Investors will also focus on the company’s 2020 profit forecast and its long-term strategy to limit the impact of the COVID-19 pandemic. PepsiCo on Tuesday is expected to report a rise in revenue for its quarter ending in March, but all eyes will be focused on any forecast the company gives about demand in the second quarter after rival Coca-Cola Co warned of sales taking a hit as restaurants, theaters and other venues closed due to the coronavirus pandemic. Starbucks is expected to report its second-quarter results on Tuesday. Focus will be on Starbucks’ business in China, where it was forced to close nearly all its stores due to the coronavirus crisis earlier in the year. Several cafes in Asia are now open and investors will look for updates on the business and consumer behavior. Updates on its U.S. market, especially any comments on when stores are expected to reopen.
Ebay Inc is expected to post a fall in quarterly revenue on Wednesday, as the e-commerce company faces stiff competition from bigger players such as Amazon.com Inc at a time when online orders surge as people stay-at-home to curb the spread of the novel coronavirus. Yum Brands Inc is expected to report its first-quarter results on Wednesday. Full-year forecast of the KFC and Taco Bell operator will be closely watched. Investors will also be watching for Pizza Hut’s performance during the quarter that includes the initial weeks of the coronavirus outbreak in the United States, which saw diners order more pizzas as they stay at home due to the lockdowns. The pizza chain has struggled to boost sales for the past few years amid intense competition and a surge in online food delivery. On Tuesday, Oreo maker Mondelez International is likely to post an increase in first-quarter profit and revenue, thanks to consumers stockpiling snacks and chocolates ahead of the coronavirus-related lockdown in the United States and some European countries. Investors will be on the lookout for potential revisions to 2020 outlook and comments on demand so far in the current quarter. Mcdonald’s is expected to reports its first-quarter earnings on Thursday. Investors will look for management’s comments on the strength of its franchisees and its business going forward. The burger chain has shifted its model to offer only delivery and take-away to curb the spread of the novel coronavirus in the United States and other parts of the world. Kraft Heinz on Thursday is expected to show a rise in first-quarter sales as consumers stocked up on packaged foods late last month as they prepared for lockdowns due to the coronavirus pandemic. Focus will remain on the company’s supply chain as several packaged food and consumer product makers try to restock shelves at supermarkets amid a surge in demand. Breakfast cereal maker Kellogg Co on Thursday is expected to post a decline in quarterly net sales, likely hurt by weakness in its foodservice business. It is expected to post a decrease in profit as well, hit by higher labor and freight costs. Investors will be on the lookout for potential revisions to 2020 outlook and comments on demand so far in the current quarter. On Thursday, the world’s No. 1 payments network Visa Inc is scheduled to report its second-quarter results on Thursday after markets close. Investors will keep an eye on the impact from the rapid spread of the COVID-19 pandemic on customer spending. Payments network Mastercard Inc is expected to report its first-quarter earnings on Wednesday. On Tuesday, Wells Fargo & Co shareholders will vote on a number of proposals at new CEO Charlie Scharf’s first meeting at the company. The meeting has drawn large protests every year since the 2016 sales practices scandal erupted. Investors will be keeping a close eye on the impact of coronavirus on the company. Carlyle on Thursday reports its first-quarter earnings even as the COVID-19 pandemic hits public markets and halts asset sales. U.S. package delivery company United Parcel Service is expected to report lower first-quarter profit on Tuesday, as coronavirus-led lockdowns disrupt operations. Caterpillar Inc will release its first-quarter earnings in premarket hours on Tuesday. The heavy equipment maker is expected to report a steep drop in earnings, hurt by business disruptions caused by the virus outbreak.
Hasbro Inc on Wednesday is expected to report a rise in first-quarter revenue and profit, but investors will pay more attention to commentary the company makes on sales trends in more recent weeks, as the novel coronavirus pandemic virtually shutdown business activity. The toy maker’s outlook and updates on the state of its manufacturing facilities will also be closely watched. Comcast is expected to report a rise in first-quarter revenue on Thursday, benefiting from an increase in demand for its internet services as more businesses opt to work from home amid the coronavirus outbreak. Investors will be looking for comments on its upcoming streaming service Peacock.
On Thursday, chemicals maker Dow Inc’s first-quarter earnings are expected to be hit by decline in demand due to the coronavirus outbreak and a squeeze in margins resulting from oil price crash. Investors will look for details on the impact of macro conditions on Dow’s units and its plan to battle the global slump.
Coach handbag maker Tapestry Inc on Thursday is expect to report a loss for the quarter ending in March, as the luxury goods industry gets hammered by the novel coronavirus pandemic which has forced businesses to close stores and global tourism to plummet. Wall Street will pay close attention to updates on the company’s liquidity, short-term outlook and online sales trends. Honeywell International Inc is expected to report its first-quarter results on Friday. The U.S. aero parts maker is expected to take a hit on its quarterly sales due to the business disruption caused by the COVID-19 pandemic. Investors will also look for comments on the actions the company is taking to curtail costs as demand falters. Phillips 66 is expected to report a rise in first-quarter profit on Friday, driven by cheap crude prices and higher refining margins. The investors will be looking out for updates on the company’s strategy after the coronavirus outbreak has knocked out demand for gasoline, jet fuel and other refined products. Estee Lauder Companies Inc is set to post lower profit and revenue on Friday as the Mac cosmetics owner’s prestige beauty product sales is expected to take a hit from the coronavirus outbreak. However, investors will keep an eye on their online sales as well as any impact to workforce.
Canadian grocery and pharmacy chain Loblaw is likely to post increases in first-quarter revenue and profit helped by customers stocking up on grocery ahead of the coronavirus-related lockdown. Investors will be on the lookout for potential revisions to 2020 outlook and comments on demand so far in the current quarter. (Compiled by Swathi Nair in Bengaluru; Editing by Amy Caren Daniel)