What to Watch in the Week Ahead and on Monday, June 1
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WEEK AHEAD The markets look forward to a slew of data and a deadline for Greece to pay its creditors at the end of the week. Reports on manufacturing sentiment, car sales and job growth dominate the calendar. If recent housing numbers are mirrored in other areas of the economy, it will support the idea that the Fed change rates in September. Some activity in the dollar and the bond market should be expected if Greece does not work out an agreement or fails to pay.
On Tuesday, the Commerce Department will release factory orders data for April. Analysts expect the orders to have remained unchanged, after rising 2.1 percent in March. The department will release trade deficit data for April on Wednesday. Economists expect the trade deficit to have reduced to $44.0 billion from $ 51.4 billion in March. U.S. private employers are expected to have added 200,000 jobs in May, compared with 169,000 jobs in April, according to the ADP National Employment Report, to be issued on Wednesday. On Thursday, the Labor Department issues weekly data for jobless claims. On the same day, the department is scheduled to issue data for revised labor costs for the first quarter, expected to have risen to 5.9 percent from 5.0 percent in the previous quarter. On Friday, the Labor Department issues jobs data for May. Non-farm payrolls are expected to have risen 225,000 from the 223,000 reported in April.
Medical device maker Medtronic Plc is likely to beat Wall Street expectations, according to Thomson Reuters StarMine. When the company reports fourth-quarter results on Tuesday, it is expecxted to have performed strongly in various segments including the surgical solutions business from its recent acquisition - Covidien.
Federal Reserve Bank of Chicago President Charles Evans speaks before the Chicago Banking Symposium, in Chicago on Wednesday. On Friday, Federal Reserve Bank of New York President William Dudley speaks before the Economic Club of Minnesota June Luncheon, in Minneapolis, Minnesota. JPMorgan Chase consumer banking chief Gordon Smith, who runs the biggest single division of the biggest U.S. bank, is expected to review the company's home mortgage and credit card businesses on Tuesday in a webcast talk at an investor conference in New York.
On Tuesday, discount retailer Dollar General Corp will report first-quarter results.
JM Smucker Co, the maker of Folgers coffee and Jif peanut butter, is likely to report fourth-quarter sales on Thursday, above analysts' average estimate, according to Thomson Reuters StarMine. The company said in February it expects a modest decrease in net sales in the fourth quarter as demand for its coffee products is likely to stay low due to price increases in the United States. But the coffee business is likely to get back on track later this year as bean prices stabilize and the company introduces smaller Folgers coffee cans to win back customers it lost after raising prices.
Mining equipment manufacturer Joy Global Inc is expected to report lower second-quarter revenue and profit on Thursday, as coal miners cut production. Investors will look for an update on full-year financial forecast.
Canadian athletic apparel company Lululemon Athletica will hold annual general meeting in Vancouver on Wednesday. Shareholders have spoken out in recent weeks, urging the yoga-wear maker to improve its corporate governance and calling for board reform. Continued...