May 1, 2014 / 7:10 PM / 3 years ago

What to Watch in The Day Ahead; Friday, May 2

5 Min Read

(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) The government's tally of jobs growth for April should confirm that the economy has returned to stronger footing after a hard winter. But hiring is likely to still be stuck in the decent but not awe-inspiring mode seen through much of last year. Wall Street economists expect non-farm payrolls expanded by 210,000 positions in April, which would be the best showing since November, but only a touch above last year's monthly average. (0830/1230) Separately, the Commerce Department is scheduled to issue factory orders for March. (1000/1400)

Chevron, the second-largest U.S. oil company, is expected to report a drop in first-quarter profit as production slipped around the world and the price of crude oil dipped slightly.

Conglomerate Berkshire Hathaway is expected to release first-quarter earnings, the evening before Warren Buffett kicks off the company's annual meeting in Omaha, Nebraska on May 3. Analysts on average expect earnings of $2,172.04 per share.

CVS Caremark is expected to report first-quarter earnings before the bell. The company is likely to update investors on its progress in lining up renewals and new contracts for its booming pharmacy benefits management business.

Royal Bank of Scotland Plc, a holding company of a global banking and financial services group, is expected to report first-quarter earnings.

Detroit, which has filed several versions of the disclosure statement, has to file a final one incorporating any last-minute settlements with creditors. The disclosure statement is a key supporting document for Detroit's plan to adjust $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history.

Analysts expect Estee Lauder to post a growth in sales for the third quarter, even as it battles weak demand in some European countries and South Korea as well as slowing growth in China. Given the struggles of the company's rivals Elizabeth Arden and Avon Products in North America, investors will be interested to see how Estee Lauder's Americas business performs in the quarter, and will be looking out for the company's full-year outlook.

Canadian pipeline giant TransCanada Corp is expected to report a higher first-quarter profit, helped by higher volumes on its Keystone oil pipeline system, which runs from Hardisty in Alberta to Cushing, Oklahoma.

Financial data firm Markit is due to release final reading of the manufacturing Purchasing Managers' Index in the euro zone, covering thousands of factories across the euro zone.

Spirit AeroSystems is scheduled to report first-quarter results. The company, which supplies fuselage for Boeing 737s, has had to cut the price of its contracts with the aircraft maker, hurting its profitability. The company has also been pressured by cost overruns. It has taken several steps to cut costs, but analysts are worried that underpricing its contracts could offset that. Since Spirit's Dreamliner program is already zero margin, investors will be looking to see if the company expects to record further charges related to it. Spirit is also a major supplier to Airbus.

Investment and private equity firm Ares Management is expected to raise up to $419 million in an initial public offering of its common units. The firm will have a market value of about $5 billion if the offering is priced at the high end of its expected range. Ares is going public at a time when investors are becoming picky in an overcrowded IPO market.

Independent refiner Alon USA Energy is expected to report first-quarter earnings. The company is likely to discuss operations, including efforts to increase crude by rail capacity at its California refining system which has been shut down since late 2012, in part because its reliance on imported crude rendered it unprofitable.

Pizza chain Papa Murphy's initial public offering is expected to raise $75 million at the top end of its targeted range, valuing the company at about $220 million. The Vancouver, Washington-based company, best known for its "take n' bake" pizzas, has been owned by private equity firm Lee Equity Partners since 2010. Founded in 1981, Papa Murphy's has around 1,350 stores - the majority of which are franchised - and is the fifth largest pizza chain in the United States.

The Mexican HSBC manufacturing Purchasing Managers' Index data is scheduled to reveal whether factory sentiment continued to cool in April after declining in March for the second month in a row, or if managers' outlook has improved. (Compiled by Shashwat Sharma)

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