What to Watch in the Day Ahead - Thursday, May 28
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New applications for unemployment insurance likely fell last week, keeping in line with a labor market that is generally improving. Analysts expect the U.S. Labor Department to report that jobless claims were up to 270,000 last week, compared with prior week's 274,000. (0830/1230) The National Association of Realtors releases data on pending home sales which is expected to have risen 0.9 percent in April after gaining 1.1 percent in March. (1000/1400)
Royal Bank of Canada, Toronto Dominion Bank and Canadian Imperial Bank of Commerce, three of Canada's five biggest lenders, will report second-quarter results. Investors look to see if there is any slowdown in profit growth amid concerns about weakness in the energy industry and a sluggish economy.
Federal Reserve Bank of San Francisco President John Williams speaks before the Monetary Authority of Singapore Banking Supervision and Regulation joint conference. (0220/0620) Federal Reserve Bank of Minneapolis President Narayana Kocherlakota speaks on monetary policy before a Community Leader Lunch hosted by the Helena Branch of the Federal Reserve Bank of Minneapolis, in Helena, Montana. (1445/1845)
Citigroup Inc CEO Mike Corbat could give an early reading on second-quarter trading revenue of the third-biggest U.S. bank by assets and one of the biggest players in fixed-income markets, when he speaks at a conference for institutional investors in New York.
Teen apparel retailer Abercrombie & Fitch Co is expected to report a fall in revenue for the ninth straight quarter. The company, which has been spurned by customers in favor of trendier and logo-free clothing sold by rival American Eagle Outfitters Inc and fast-fashion chains, is trying to affect a turnaround at its namesake and Hollister brands by cutting supply times and controlling inventory. However, more discounts, fashion missteps, and a stronger dollar have made it difficult for the company to return sales to growth. Investors will look for updates to the forecast, comments on the industry, and additional color on the search for a new CEO, when the company reports first-quarter results.
Sanderson Farms Inc reports second-quarter results. Investors will be looking out for any comments from the third-largest U.S. poultry producer on a possible impact from the import ban on chicken imposed by several countries due to the avian flu outbreak.
Data analytics software maker Splunk Inc is expected to report first-quarter revenue marginally above estimates, according to Thomson Reuters StarMine data. Splunk has been benefiting as businesses increasingly turn to data analytics to secure their networks from a surge in highly sophisticated cyber attacks.
GameStop Corp, the world's largest retailer of video game products, is expected to report first-quarter results below the analysts' average estimate, according to Thomson Reuters StarMine data. GameStop has been hurt by lackluster demand for the new PlayStation 4 and Xbox One consoles, which have failed to make up for falling sales of earlier versions. Moreover, the company in March forecast full-year profit below Street expectations, citing a strong dollar. GameStop is now betting on PS4 and Xbox One software and mobile sales to make up for weak demand for consoles. The company is looking to the Mortal Kombat game, released in April, and Batman games, slated for release in June, to drive growth. Continued...