What to Watch in the Day Ahead - Wednesday, Aug. 5
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Media company Twenty-First Century Fox Inc reports results for the first time since James Murdoch took over as CEO. Wall Street expects the company to post fourth-quarter earnings of 37 cents a share, down from 42 cents a year earlier, according to Thomson Reuters I/B/E/S. The company is facing a weaker advertising market, ratings declines at the Fox broadcast network and tough comparisons for its film studio.
Time Warner Inc reports its results for the second quarter. Analysts expect the company to post adjusted earnings of $1.03 a share, up from 98 cents a year earlier, according to Thomson Reuters I/B/E/S.
The pace of growth in the U.S. services sector is expected to have increased a little in July, compared to the gain in the previous month. Data from the Institute for Supply Management is likely to show services sector index to have increased to 56.2, just a little up from June's reading of 56. (1000/1400) Also, financial firm Markit releases its reading of its Purchasing Managers Index for the services sector for the month of July. (0945/1345) Separately, the ADP National Employment Report is likely to show U.S. private employers added 215,000 jobs in July, down from previous month's 237,000 additions. (0815/1215)
Tesla Motors Inc releases second-quarter results and investors will be looking for more information from CEO Elon Musk on the company's rollout of its next new vehicle, the Model X crossover, as well as the status of the 2017 Model 3, the Nevada "gigafactory" and the first application of Tesla's "Autopilot" self-driving software on the Model S sedan. Also under scrutiny will be the company's cash burn rate in the quarter, as well as capital expenditures and R&D costs, compared with Model S unit volume and sales revenues.
Dish Network Corp, the No.2 U.S. satellite TV company, is expected to report second-quarter revenue and profit below analysts average estimate, according to Thomson Reuters StarMine. Dish has been losing pay-TV subscribers as rivals offer discounts to both new and existing customers in an increasingly competitive pay-TV market. The company has been attempting to woo young viewers away from their cable or satellite subscriptions to its less costly Sling TV streaming service, launched in January. Dish has amassed spectrum in recent years without building out infrastructure to offer its own wireless service. Investors will look for details on the company's spectrum strategy.
HCA Holdings Inc, the largest U.S. for-profit hospital operator, is set to report better-than-expected second-quarter profit, according to Thomson Reuters StarMine, helped by an increase in hospital admissions and visits. U.S. hospitals have been reaping the benefits of Affordable Care Act with the rise in insurance coverage resulting in an increase in the number of medical bills being paid.
IT service provider Cognizant Technology Solutions Corp is expected to report second-quarter results slightly above analysts average estimate, according to Thomson Reuters StarMine. Cognizant has been benefiting from higher spending by clients in North America, especially in its healthcare unit, which accounts for nearly a third of its total revenue. The company said in May it expects the recent acquisition of healthcare IT services provider TriZetto and the implementation of the U.S. Affordable Care Act to drive growth this year.
CBS Corp, the owner of the CBS broadcast network and cable channel Showtime, is expected to report second-quarter revenue marginally below analysts average estimate, according to Thomson Reuters StarMine. The company has been struggling to increase revenue as advertising dollars shift to digital platforms. The report from the owner of the most-watched U.S. television network will also provide an update on the health of the country's advertising market. Continued...