What to Watch in the Day Ahead; Wednesday, May 28
(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) Fashion accessories retailer Michael Kors is scheduled to report fourth-quarter results before the bell amid high expectations after its trendy handbags and watches won over holiday shoppers and the company raised its full-year forecast. The company has already grown bigger than rival Coach and investors will look for signs that it will be able to keep up the momentum as it enters a new year. Bank of Montreal is scheduled to release second-quarter results. Profit is expected to rise slightly due to strength in its domestic banking unit. Larger rivals Royal Bank of Canada, Toronto-Dominion Bank and Scotiabank have reported better-than-expected results. Much of the focus will be on Bank of Montreal's U.S. banking unit, which has posted uneven results over the past few years and is not expected to be a bright spot in the latest quarter. A small dividend increase is seen as a possibility. Analysts expect a profit of C$1.53 per share. Luxury homebuilder Toll Brothers is scheduled to report second-quarter results before the market opens. As a recovery in the U.S. housing market appears to be finally regaining momentum, the company is better positioned to take advantage of the pickup in the housing market because of its decision to enter the home rental market. Investors will be looking for an update in order trends and for comments on plans to increase investment in apartment rentals. Seadrill is expected to release results for the first quarter. The company's outlook will be more important than ever as the offshore drilling market is slowing sharply and Seadrill is sitting on a large number of uncommitted newbuild contracts. Its recent deal with Rosneft is a major breakthrough, but its order book is still seen falling and rates are coming down. Brazil's central bank looks set to finally stop raising interest rates after taking them to over two-year highs, hoping it has done enough already to keep inflation under control. Forty-eight of 58 economists polled by Reuters expect the Selic rate to stay at 11.00 percent; only 10 forecast a 25-point hike, which would be the tenth in a row since April 2013. (Compiled By Ayesha Sruti Ahmed in Bangalore)
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