What to Watch in the Day Ahead - Wednesday, May 27
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Toll Brothers Inc, the largest U.S. luxury homebuilder, is expected to report higher revenue for the second quarter, helped by strengthening housing demand. Investors will look for an update on the company's full-year forecast and comments on demand trends in the spring selling season.
Warehouse club operator Costco Wholesale Corp is likely to report third-quarter sales below analysts' average estimate, according to Thomson Reuters StarMine. Retailers have reported mixed results for the quarter ending late April/early May, with Macy's and Kohl's blaming colder-than-usual February and West Coast port disruptions for slow sales. Others, including Costco's smaller rival Target, reported strong sales with robust online activity as well as strong demand for apparel, items for children, and in the health and wellness category.
Federal Reserve Bank of Richmond President Jeffrey Lacker speaks on "From Country Banks to SIFIs: The 100-year Quest for Financial Stability" at an event hosted by the Louisiana State University Graduate School of Banking, in Baton Rouge. Elsewhere, U.S. Treasury Secretary Jacob Lew will participate in a moderated conversation at the London School of Economics and Political Science. The discussion will focus on the state of the global economy ahead of the Lew's travel to a meeting of G-7 finance ministers in Dresden, Germany.
The U.S. Commerce Department releases revised building permits data for April.
Tiffany & Co has been hit by a strong dollar, which has made it more expensive for foreign visitors to splurge in the United States. So investors will be looking for an updated full-year forecast when the No. 1 U.S. jeweler releases first-quarter results. Tiffany reported its first fall in quarterly sales in more than a year in March. But spending in Japan before an increase in the country's consumption tax may be a bright spot.
Fashion and accessories company Michael Kors Holdings could report lower-than-expected fourth-quarter profit and sales, according to StarMine, as a frenzy over Kors handbags in North America dies down. More promotions at department stores are also luring customers away from Kors' branded stores. Investors will be looking for a forecast for the next year and any new strategies to stave off brand fatigue.
The Bank of Canada will issue its decision on interest rates, but is expected to keep its key rate at 0.75 percent. While the central bank is not due to update its economic forecasts, analysts will parse its statement for any mention of recent weak U.S. data and how that might impact Canada's growth prospects. Governor Stephen Poloz recently said the Canadian economy remains on track to see a partial rebound in the second quarter. The bank surprised nearly everyone with an interest rate cut in January but has held rates steady since then. (1000/1400)
Bank of Montreal, Canada's fourth-largest bank by market capitalization and assets, reports second-quarter results. National Bank of Canada, the country's sixth-largest lender is also expected to report a higher second-quarter profit, helped by its wealth management and financial markets units.
LIVE CHAT: The Age of the Yuan, with Cumberland Advisors' Chief Economist Bill Witherell The Chinese yuan may be the fifth-biggest currency for global trade, but it still has a way to go to become freely convertible. That fact, combined with its loose peg to the U.S. dollar, is a big challenge to Chinese policymakers' ambitions of building the yuan into a reserve currency. Witherel joins the Forum at 1000 ET (1400 GMT) to discuss the yuan and its trading prospects. To join the forum, click here bit.ly/1kTxdKD
(Compiled by Nivedita Balu; Edited by Maju Samuel)
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