What to Watch in the Day Ahead - Friday, Oct. 24
(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) Household products maker Procter & Gamble Co is expected to report first-quarter profit slightly below the average analyst estimate, according to StarMine. P&G said in August it could sell about half of its brands in the next two years and cut jobs to revive sales growth and save costs. The company, which had a management reshuffle recently, also sold off the last of its pet food business to Spectrum Brands last month. Investors will be looking for more details on which brands the company plans to shed and where it would be looking to cut costs.
Colgate-Palmolive Co, which controls nearly 45 percent of the global toothpaste market, posts third-quarter earnings. A strong dollar could hurt its earnings from outside the United States. The company's profit has fallen by an average 7 percent in the past four quarters. Investors will be looking for signs of sales growth.
Ford Motor Co reports third-quarter earnings, the first under new CEO Mark Fields. Investors will be looking for any updates on the rollout of the aluminum-intensive, lighter-weight F-150 pickup. The F-150 has been the top-selling vehicle in North America or over three decades and helps keep the car company profitable when other areas of its business are not doing so well. The U.S. Commerce Department reports new home sales data for September. Sales of new single-family homes are expected to have slipped last month after reaching a six-year high in August. Given that sales of previously owned homes rose in September, the data is not likely to shift views the housing sector's modest recovery is still on track (1000/1400). United Parcel Service Inc reports third-quarter results before the market opens. Alongside main rival FedEx, UPS is considered a bellwether of U.S. economic activity. The company said last month it would hire up to 95,000 seasonal workers for peak season, nearly double the 55,000 it hired last year.
Wall Street expects Bristol-Myers Squibb to report lower third-quarter earnings and sales, hurt by sharply higher research costs and declining sales of treatments for HIV. Investors want greater clarity on the company's experimental treatments for cancer that work by spurring the immune system, now that rival Merck is closing in on the company's lead in the program. Auto parts supplier Delphi Automotive Plc is scheduled to report third-quarter results before the market opens. The company is likely to benefit from the growth in global vehicle demand and its planned restructuring in South America, where revenue fell 24 percent in the last quarter. Delphi could also benefit from demand in developing countries like India and China where it has a sizable presence. The company has been in the news recently for supplying the defective ignition switch to General Motors Co, which has been linked to at least 13 deaths. Lear Corp, a maker of auto seats and electrical power systems, is likely to report better-than-expected third-quarter results, according to StarMine, as sales of new cars rose during the quarter. Analysts expect Lear's margins to rise as sales of premium vehicles increase. Investors will be looking for a forecast on the electrical power systems business after the company said last quarter that it was expected to slip slightly in the second half of the year. Trans-Atlantic exchange operator Nasdaq OMX Group Inc is expected to report a rise in third-quarter profit as recent acquisitions boost revenue.
Shares of e-cigarette marketing company Electronic Cigarettes International Group's start trading on the Nasdaq under the symbol "ECIG" after a public offering of its shares. The stock already trades on the Over the Counter market. The company, which counts Wal-Mart and Walgreens among its customers, owns brands such as Vapestick, Victoria and El Rey. Data from Mexico will show whether economic activity continued to expand in August. The IGAE index of economic activity increased 0.41 percent in July from June. 0900/1300). Britain's Office for National Statistics issues third-quarter GDP data. The pace of economic recoveries is expected to have cooled. (0430/0830). (Compiled by Ayesha Sruti Ahmed and Sourav Bose in Bangalore)
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