What to Watch in the Day Ahead - Tuesday, Oct. 14
(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) JPMorgan Chase, the biggest U.S. bank by assets, will release third-quarter results and begin a conference call with analysts before the stock market opens. The call would be CEO Jamie Dimon's first with securities analysts since undergoing treatment for throat cancer during the summer. The third- and fourth-biggest banks, Citigroup and Wells Fargo, also plan to announce and discuss their third-quarter results. Wells Fargo will likely show an improvement in its home loan unit after suffering four straight quarters of declines. Johnson & Johnson is expected to report moderately higher third-quarter sales and earnings, spurred by strong sales of its new Olysio treatment for hepatitis C. But sales of the drug, introduced less than a year ago, are expected to plunge in coming months following U.S. approval last week for a combination treatment from Gilead Sciences that is more potent and more convenient. Investors will be keen for research updates on other potential big-selling J&J drugs now in development, as well as insights into how greatly the stronger dollar is likely to hurt overseas sales of the company's drugs, medical devices and consumer healthcare brands. Chipmaker Intel Corp posts third-quarter earnings after the bell. Intel will most likely have enjoyed a bit of a topline boost in the last quarter when PC sales trickled back in its largest U.S. market, but the industry bellwether's guidance will attract more scrutiny, coming as it does after a string of smaller semiconductor industry players have warned of lackluster results. National Federation of Independent Business issues Small Business Optimism Index for September. U.S. small business optimism edged slightly higher in August as more owners said they expected business conditions to improve in coming months and planned to increase capital spending (0730/1130). Omnicom Group, the No.1 U.S. advertising company, is likely to report a third-quarter profit above analysts' estimates, according to StarMine, helped by higher ad spending in the United States. In July, the company said it was sticking with its annual organic revenue growth target, showing little effect from its aborted $35 billion merger with France's Publicis Group. Investors will look forward to updates on full-year forecast and commentary on ad spending trends. CSX Corp, which provides rail-based transportation services, including traditional rail service and the transport of intermodal containers and trailers, is scheduled to post third-quarter earnings after the bell. Analysts expect earnings per share to be up slightly to $0.48 from $0.46 a year earlier. Federal Reserve Bank of New York President William Dudley gives introductory remarks and presides over a dinner of the Economic Club of New York (1900/2300). Briefing documents from the U.S. Food and Drug Administration staff will give investors an idea of what the agency has in store for Pfizer's controversial quit-smoking drug Chantix. The drug, approved in 2006, has faced questions about its safety. Trouble started in 2007 when the FDA said it received reports of serious side-effects, including suicidal thoughts and behavior, erratic behavior, and drowsiness. The drug also carries a black-box warning - the most severe kind of warning mandated from the FDA - on its label regarding the suicidal side-effects. Chantix's problems continued as questions on possible heart problems in users came up in 2011. The documents will hint at the FDA's thoughts on whether it needs to take additional steps on the side-effects. The Advisory Committee will vote on the same on Oct. 16. The Office for National Statistics of UK releases consumer prices for September. Consumer prices rose 1.5 percent on the year in August, the lowest increase since May, compared with 1.6 percent in July, the Office for National Statistics said (0430/0830). (All analysts' estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Sourav Bose in Bangalore; Edited by Don Sebastian)
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