What to Watch in the Week Ahead and on Monday, Oct. 6
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WEEK AHEAD The markets are getting through a bout of volatility that leaves them in a position similar to where things were before Bill Gross' surprise resignation: weak growth overseas continues to push investors into safe-haven government debt in the United States, the equity market remains somewhat jittery with earnings on the way, and investors expect the dollar to maintain its recent strength. Alcoa and Monsanto are scheduled to report quarterly results on Wednesday.
Yum! Brands will report third-quarter results after the closing bell on Tuesday. The company has already warned that same-restaurants sales in its all-important China market were down 13 percent for the third quarter ended Aug. 31 due to a supplier scandal that has devastated sales for KFC, Pizza Hut and McDonald's. Investors will be looking for signs that the crisis is abating.
The Federal Reserve will release minutes of its mid-September policy meeting on Wednesday that could yield clues on how dramatically the central bank may overhaul its interest rate guidance later this month.
Closing arguments are scheduled on Thursday in a lawsuit by the U.S. government and 17 states accusing American Express of stifling competition from credit card providers that charge lower processing fees. The trial is before U.S. District Judge Nicholas Garaufis of Brooklyn.
Federal Reserve Bank of Richmond President Jeffrey Lacker speaks on "Rethinking the Unthinkable: Bankruptcy for Large Financial Institutions" before an American Bankruptcy Institute luncheon at the National Conference of Bankruptcy Judges annual meeting on Friday. Federal Reserve Bank of Minneapolis President Narayana Kocherlakota speaks on "Clarifying the Objectives of Monetary Policy" before an event sponsored by the Rapid City Economic Development/Black Hills Knowledge Network on Tuesday. Federal Reserve Bank of San Francisco President John Williams speaks on the economic outlook before a Las Vegas business and community leaders luncheon on Thursday.
The International Monetary Fund holds a news briefing Tuesday on the World Economic Outlook along with IMF chief economist Olivier Blanchard and IMF Economic Counselor and Director of Research Department Thomas Helbling. On Wednesday, IMF Managing Director Christine Lagarde gives opening remarks before the "Challenges of Job-Rich and Inclusive Growth - The Imperative of robust and sustained growth" event.
HubSpot Inc is expected to make its trading debut on Thursday. The company's initial public offering is expected to be priced at $19-$21 per share, valuing the marketing software provider at $637 million at the top end of the range. HubSpot's offering of 5 million shares is expected to raise up to $105 million. Sequoia Capital, Charles River Ventures and General Catalyst Partners are among HubSpot's stockholders. HubSpot helps businesses personalize interactions with customers, who are increasingly averse to traditional marketing tactics such as cold calls, unsolicited emails and disruptive advertisements. The company's shares will trade under the symbol "HUBS".
MOL Global Inc's initial public offering is expected to be priced at $12.50-$14.50 per share on Thursday, valuing the Malaysian online payment company at $978.8 million at the top end of the range. The IPO of 19.5 million American Depository Shares is expected to raise up to $282.2 million. The company, majority-owned by Malaysian billionaire Vincent Tan, is expanding in Southeast Asia and plans to tap the Malaysian government's push to drive e-payments in preparation for a new consumption tax that kicks in next year. Continued...