What to Watch in The Day Ahead; Tuesday, June 24

Mon Jun 23, 2014 2:36pm EDT
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(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) Philadelphia Fed president Charles Plosser speaks on the economic outlook and monetary policy at the Economic Club of New York. (0805/1205) New York Fed President William Dudley talks about the Puerto Rican economy and business conditions at a San Juan accountants' symposium, while San Francisco Fed President John Williams joins a panel on the global economy at Stanford University. (1400/1800) (1830/2230) The U.S. Commerce Department issues its monthly report on sales of new homes, which likely continued to rise in May. New single family home sales likely jumped to a 440,000-unit pace last month from 433,000 units in April, according to a Reuters' poll. (1000/1400) Separately, the S&P/Case-Shiller's composite index of home prices in 20 metropolitan areas is expected to show home prices rose in April. (0900/1300) Also expected is the Conference Board's index of consumer confidence, which likely was flat in June. (1000/1400) Walgreen's quarterly results is expected to meet Wall Street's expectations after the drugstore operator's May sales rose 6 percent, helped by strong growth in both front-end and pharmacy sales. Traffic is likely to remain a challenge in near term as the company implements pricing changes. Investors will want to know how purchasing synergies related to the company's distribution agreement with AmericansourceBergen are progressing. The House Judiciary Committee's Subcommittee on Regulatory Reform, Commercial and Antitrust Law is scheduled to conduct a hearing on the proposed merger of AT&T and DirecTV. Witnesses testifying at the hearing will include AT&T CEO Randall Stephenson, DirecTV CEO Michael White, consumer advocates and American Cable Association representatives on behalf of smaller cable providers. Cruise operator Carnival, scheduled to report results before the bell, warned in March that it may report a loss for the second quarter as it cuts prices and spends more on advertising to attract customers after onboard mishaps hurt demand over the past couple of years. Its lower-than-expected forecast was in contrast to No. 2 cruise operator Royal Caribbean Cruises Ltd, which raised its full-year earnings forecast in January, saying its ticket sales in Europe were improving. North Dakota Governor Jack Dalyrmple is ratcheting up pressure on Enbridge, Oneok and other pipeline companies to help curb flaring, pushing them to double efforts to build new gathering lines across the state's oil fields. At a pipeline conference in Bismarck, Dalrymple and other state regulators are expected to launch tough new penalties for existing wells that flare, which contributes to greenhouse gas emissions, and also unveil new regulations that should streamline right-of-way problems that have hobbled pipeline development thus far. A two-day conference on crude-by-rail safety begins, including discussions of crude quality and possible infrastructure to remove flammable natural gas liquids from crude oil before it is loaded onto railcars to make it safer from the front end, rather than put all the onus on a fortified railcar to protect against fires and explosions in a crash or derailment. Also on the agenda is a discussion on railcars, costs of retrofitting old tank cars or upgrading to fleets made up entirely of the latest design. Paul Konigsberg, a former accountant for Bernard Madoff who was indicted last year on charges he helped Madoff defraud thousands of customers in the Ponzi scheme masterminded by the convicted swindler, is expected to enter a guilty plea. He will become the 15th defendant to be convicted in connection with the fraud. The hearing is before U.S. District Judge Laura Taylor Swain. A former Intel executive, whose trial testimony helped convict hedge fund titan Raj Rajaratnam, is scheduled to testify against the onetime billionaire's younger brother, Rengan, in an insider trading case. The former executive, Rajiv Goel, previously pleaded guilty and was sentenced to two years of probation in 2012 for being part of Raj Rajaratnam's network of insiders feeding him corporate secrets. The case is before U.S. District Judge Naomi Reice Buchwald. Mexico's inflation numbers will reveal whether the rate continued to ease in early June off a seven month low of 3.44 percent notched in the first half of May. Economic activity data will shed light on economic activity in April, after March figures registered a 0.81 percent contraction month on month. (0900/1300) (Compiled By Ayesha Sruti Ahmed in Bangalore)