What to Watch in the Day Ahead - Tuesday, Feb 23

Mon Feb 22, 2016 2:37pm EST
 
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(The Day Ahead is an email and PDF publication that includes
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U.S. home resales likely fell in January after a record surge in
December. A Reuters survey of economists forecast existing home
sales declining 2.9 percent to an annual rate of 5.32 million
units. (1000/1500) Despite the expected decline, January's sales
pace would still be above the 2015 average, indicating that the
housing market recovery remains intact. Separately, the
S&P/Case-Shiller house price index likely rose 5.8 percent in
December from a year ago. (0900/1400) Also, the Conference Board
is expected to report that its consumer confidence index slipped
to 97.0 in February because of the stock market turmoil from a
reading of 98.1 in January.(1000/1500)
 
Home Depot Inc is expected to report fourth-quarter revenue
above analysts' estimates, according to Thomson Reuters StarMine
data. The biggest home improvement retailer benefited from a
recovery in the U.S. housing sentiment and an uptick in
builders' confidence in 2015. The company typically sees a rise
in sales after a harsh winter leads to increased demand for home
repair. But an unseasonably warm weather is likely to prompt the
company to have sold more building and outdoor products in the
quarter.
 
Stanley Fischer, Federal Reserve Vice Chair, will speak on
"Developments in Monetary Policy" before the CERA Week 2016
event. (2030/0130) Also, Federal Reserve Bank of Minneapolis
President Neel Kashkari is scheduled to speak before the St.
Paul Regional Economic Development Partnership Winter Investor
Meeting, in Minneapolis. (0900/1400)
 
Macy's Inc forecast a 4.7 percent decline in quarterly
same-store sales, hit by weak holiday sales due to unusually
warm weather and a strong dollar, keeping tourist spending low.
The owner of Macy's and Bloomingdale's department store chains
has said it will cut more than 2,000 jobs at its stores and call
centers. In its fourth-quarter report, investors will look for
2016 forecast, and how the company plans to reverse a year-long
streak of falling sales.
 
JPMorgan Chase & Co will hold an investor day where the top
executives of the biggest U.S. bank by assets will flood
investors with about 200 slides and five hours of presentations
about the company's diverse businesses. Analysts are expected to
press executives on whether the company will cut more costs than
previously announced now that the profit outlook has darkened
with low interest rates for longer and more costs for bad energy
loans. CEO Jamie Dimon may comment on the turmoil in European
banks.
 
Solar company First Solar Inc is expected to report lower
quarterly profit in its fourth-quarter report, pressured by
irregular revenue from its solar project shipments. An extension
of investment tax credits beyond 2016 is expected to help the
company's long-term earnings outlook.
 
Toll Brothers Inc, the largest U.S. luxury homebuilder, is
expected to report a higher first-quarter revenue, helped by
rising home prices. However, recent market volatility and a
decline in oil prices could impact demand in the luxury segment
of the housing market in regions such as Texas, which is among
its biggest markets by revenue. Investors will be looking for
comments on demand trends, pricing and the outlook for the
spring selling season.
 
DreamWorks Animation SKG Inc is expected to report its
fourth-quarter revenue above the average analyst estimate,
according to Thomson Reuters StarMine data. The Hollywood studio
has been focusing on increasing revenue from licensing its
original content to Netflix to tap the shift in viewing habits
to digital platforms. The company, which produced only one movie
in 2015, plans to make fewer movies with stronger plots as well
as sequels of popular films to beat stiff competition from other
studios.
 
Bank of Montreal, Canada's fourth biggest lender, will report
first-quarter results, kicking off the Canadian banks' earnings
season. Investors are expected to focus on its exposure to the
energy industry and parse the numbers for clarity on the impact
the weak oil prices are having on its loan book.
 
Canadian Finance Minister Bill Morneau, who has kept a low
profile ahead of a budget that political sources say will be
unveiled on March 21 or 22, is due to testify to the House of
Commons finance committee. He will undoubtedly be pressed on the
2016/17 budget deficit, which Prime Minister Justin Trudeau says
will be larger than the C$10 billion the Liberals promised
during last year's successful election campaign.
 
Mexico's Coca Cola FEMSA reports its fourth-quarter results.
Investors will be looking out for updates on its Venezuela
business, which has hurt the company, and also whether the
company, which has been on a buying spree in recent years in an
attempt to offset slowing Coke sales, makes any comment on
acquisitions.
 
Brazil's IPCA-15 consumer price index is expected to have risen
1.3 percent in the month to mid-February. In the 12 months
through mid-February, consumer prices probably rose 10.71
percent. (0700/1200) The country is expected to post a current
account deficit of $5.9 billion in January. In the same month,
Brazil probably attracted $4.95 billion in foreign direct
investment. (0830/1330)
 
Mexican GDP data for the fourth quarter of 2015 is due.
Preliminary data in January projected the economy grew 0.6 pct
quarter-on-quarter, slowing from the 0.8 percent rate in the
third quarter. (0900/1400)
 
LIVECHAT - Fracking's upside with Gary Sernovitz of
private-equity firm Lime Rock
Author of "The Green and The Black," a new book championing
fracking , Gary Sernovitz is a novelist and managing director at
the energy-focused Lime Rock private equity firm and will take
questions on the oil bust's financial fallout, the outlook for
the beleaguered shale industry and Saudi Arabia's seemingly
winning campaign to protect its market share over the long run.
(1000 ET/1500 GMT) To join the Global Markets Forum, click here
bit.ly/1kTxdKD

 (Compiled By Nayyar Rasheed in Bengaluru; Editing by Maju
Samuel)