What to Watch in the Day Ahead - Friday, Oct 30
(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) Exxon Mobil Corp, the world's largest publicly traded oil company, and Chevron Corp are expected to report a drop in third-quarter results amidst the slump in crude oil prices. In addition to the crude oil rout, the second-largest U.S. oil producer Chevron's quarterly profit is likely to be affected by the high costs of its multiple megaprojects around the globe. CVS Health Corp's third-quarter revenue is likely to come in above analysts average estimate, according to Thomson Reuters StarMine. The No. 2 U.S. drugstore chain operator had said profit was being hurt by low reimbursement rates for generic drugs, which are getting more expensive, and lower customer traffic after the company stopped selling tobacco products. However, the company's pharmacy benefit management business is likely to be helped by the distraction to rival Catamaran Corp, which is getting acquired by UnitedHealth Group. AbbVie Inc is expected to report a third-quarter profit above analysts average estimate, according to Thomson Reuters StarMine, helped by strong sales of its arthritis and hepatitis C drug. However, investors will be looking for commentary on the warning issued by the U.S. Food and Drug Administration on the potential risk of serious liver injury for certain patients using its hepatitis C treatments. Mylan NV, which has been pursuing smaller rival Perrigo since April, is expected to report third-quarter revenue marginally above analysts average estimate, according to Thomson Reuters StarMine. Investors' focus, however, will be on the looming Nov. 13 deadline when Mylan's tender offer expires. Anheuser-Busch InBev, the world's largest beermaker, is expected to report a 6.7 percent fall in third-quarter core profit, according to the average estimate of a Reuters survey. Brewer SABMiller Plc recently extended until Nov. 4 the deadline for Anheuser-Busch InBev to make a formal $100 billion-plus takeover offer. Colgate-Palmolive Co is likely to report third-quarter sales below analysts average estimate, according to Thomson Reuters StarMine. The impact from the strong dollar is likely to have worsened in the quarter as the personal care products maker has a large presence in Latin America, where many currencies are down since July 31, particularly the Brazilian real. U.S. consumer spending likely rose in September, offering confirmation that domestic demand remains solid despite a softening global economy. Economists forecast consumer spending rising 0.2 percent last month after increasing 0.4 percent in August. (0830/1230) Separately, the University of Michigan's final index for October on overall consumer sentiment likely rose to 92.5, a bit higher than the final reading of 92.1 in September. (1000/1400) Employments costs in the third quarter, meanwhile, probably increased 0.6 percent. (0830/1230) Federal Reserve Bank of San Francisco President John Williams participates in a discussion on "Where Interest Rates Will Be When the Economy is (Finally) Healthy and Why It Matters" at an event hosted by the Brookings Institution. (1050/1450) Meanwhile, the Board of Governors of the Federal Reserve System will hold an open meeting to discuss a proposed rule establishing total loss-absorbing capacity and long-term debt requirements for global systemically important banking organizations, as well as a final rule on margin and capital requirements for uncleared swaps of prudentially regulated swap entities. (1430/1930) Asset manager Legg Mason Inc is scheduled to report second-quarter results. Analysts will look to see if the company reports soft flows due to choppy markets in the period. Eaton Corp Plc, a maker of electrical and hydraulic products, anticipates revenue for the third quarter below its previous forecast, primarily due to weak organic growth. Investors will be looking for comments on impacts from currency swings that have been biting into the diversified manufacturer's sales and updates on the restructuring program it announced in July. Refiner Phillips 66 is expected to report a rise in third-quarter profit, helped by robust demand for refined products and lower crude costs. Investors will be looking out for comments on utilization rates and refinery turnarounds. The company has also set a lower capital budget for 2016 and is planning to increase dividends next year. Integrated Canadian oil producer Imperial Oil Ltd is expected to show weak third-quarter earnings. Despite a torrid quarter, the company has been ramping up production at its Kearl oil sands mine in northern Alberta and is expected to report higher production volumes. Investors will be watching closely for any hint Imperial may be interested in submitting a counter-offer for Canadian Oil Sands, currently the subject of a hostile takeover bid from Suncor Energy. When Canada's uranium producer Cameco Corp reports third-quarter results, investors' focus will be on whether it raises production guidance for its newest mine, Cigar Lake. An increase would be good news for the company, but mildly bearish for the oversupplied global uranium market. Canadian integrated producer oil and gas producer Husky Energy Inc will have some cushion against low global crude prices thanks to its refining business, but is expected to report a weak third-quarter, in line with its peers. Investors will keep an eye on Canadian gross domestic product (GDP) for August to gauge how the economy for the third quarter is shaping up. The GDP is expected to have picked up by 0.1 percent in the month, reinforcing the view that growth is rebounding after a mild recession in the first half of the year. (0830/1230) Colombia's central bank is likely to raise its benchmark interest rate by a quarter point, according to a recent survey of analysts. Meanwhile, Chile's jobless rate for the July-to-September period is expected to have risen to 6.6 percent. LIVECHAT: The Week Ahead - with Reuters markets editor Nigel Stephenson Join Nigel Stephenson as he goes through the key macroeconomic and political themes for the coming week at 0700/1100. To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled By Nayyar Rasheed in Bengaluru; Editing by Savio D'Souza)
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