What to Watch in the Day Ahead - Thursday, Dec. 11

Wed Dec 10, 2014 2:37pm EST
 
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(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) Photoshop maker Adobe Systems Inc is expected to report fourth-quarter profit above estimates, according to Thomson Reuters StarMine data. Adobe has been switching to Web-based subscriptions for its Creative Suite 6 from traditional box licenses to attract more predictable recurring revenue. Investors and analysts want to see if the company can manage to persuade more-resistant customers such as individuals and small businesses to make the switch to cloud. The U.S. Labor Department releases import and export prices data for November (0830/1330) and weekly data on jobless claims (0830/1330). Import prices are expected to show a fall of 1.8 percent while export prices are expected to drop 0.5 percent. Weekly initial jobless claims are likely to fall to 295,000 from 297,000 the prior week. Separately, the Commerce Department releases business inventories data for October (1000/1500) and retail sales figures for November (0830/1330). While business inventories are expected to show a monthly rise of 0.2 percent compared with an increase of 0.3 percent in September, retail sales are expected to show a 0.4 percent rise. Less than a month after its chief executive abruptly retired, United Technologies Corp hosts analysts and investors at its annual outlook meeting in New York. New CEO Greg Hayes, who until recently served as chief financial officer, is expected to lead the meeting in his public debut as CEO. Aside from United Technologies' earnings projection for the next year, Wall Street will be eager to hear if the company will take a different strategic direction under Hayes. RadioShack Corp releases third-quarter results. The struggling electronics retailer is working to cut costs and shore up financing to stay afloat, as it loses market share to online rivals. The company will stop matching employees' retirement-fund contributions and review health benefits to help cut costs, Bloomberg reported. Its discussions to seek approval from lenders to shut 1,100 stores have hit a rough patch, with lender Salus Capital accusing it of breaching covenants, which the company denied. Investors will look out for RadioShack's confirmation on changes in employee health benefits and retirement plans, and updates on discussions with lenders and other cost-cutting measures. Beleaguered Canadian yogawear retailer Lululemon is expected to report higher revenue, but lower profit in the third quarter, with ecommerce driving sales. Investors will likely want details on the performance of its bricks and motar stores, particularly in Canada and the United States as well as the company's outlook and magin performance. The company, which continues to deal with the fallout from a March 2013 recall of yoga pants deemed too sheer, had previously said that efforts to improve operations such as its supply chain, could take until 2015 to work its way through the system. Investors will be looking for signs of sustained improvements. Canadian oil sands developer Cenovus Energy Inc releases its 2015 capital budget as it weighs an ambitious growth agenda against falling oil prices. Company executives will detail their expectations for the oil market next year. Though its costs are among the lowest in the Athabasca oil sands region, some question whether it will hit the pause button as it strives to reach output of 500,000 barrels per day. LendingClub Corp, the world's largest online marketplace that directly connects borrowers and investors, is expected to make its market debut. The company will raise $807.8 million at the top end of the expected price range of $12-$14. LendingClub, which has facilitated more than $5 billion in loans since its launch in 2007, has former U.S. Treasury secretary Lawrence Summers and former Morgan Stanley chief executive John Mack on its board. At the top end of the expected price range, LendingClub will be valued at $4.33 billion. Shares of Alibaba Investment-backed Momo Inc, a Beijing-based provider of mobile chat apps, are expected to start trading on the Nasdaq. The company could raise up to $232 million from the initial public offering of 16 million American depositary shares, expected to be priced between $12.50 and $14.50 each. The company will be valued at about $2.7 billion at the top end of the expected range. Bank of Canada Governor Stephen Poloz speaks before the Economic Club of New York. He starts speaking at 0800 ET (1300 GMT) and the text of his speech will be released at 0745 ET (1245 GMT). He will hold a news conference at 0920 ET (1320 GMT). Statistics Canada releases capacity utilization data for the third quarter and new housing prices data for October. Industry productivity is expected to edge up to 83.1 percent in the third quarter. New home prices are expected to rise by 0.1 percent in October, matching the previous month's pace of price gains. (Compiled by Ayesha Sruti Ahmed in Bengaluru; Editing by Kirti Pandey)