What to Watch in the Day Ahead; Wednesday, Aug. 13
(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) Dow component Cisco is scheduled to report its fourth-quarter results. The network equipment maker reported a smaller-than-expected drop in revenue last quarter as it introduced new technology to deal with the growing threat of commoditized servers to its hardware market. Investors will focus on whether the company can maintain that momentum and successfully dive into the software-defined network market, which has dramatically reduced demand for its expensive hardware.
New York Fed President William Dudley and Eric Rosengren of the Boston Fed are expected to give introductory remarks before the Workshop on the Risks of Wholesale Funding.
Deere & Co, the world's largest maker of tractors, harvesters and other agricultural, construction and forestry equipment, is likely to report third-quarter results. With another record crop putting pressure on commodity prices, farmers are already cutting back on their investments in new machinery. Investors will look out for whether growing tensions in Russia and the slowdown in Brazil add to the company's farm-based woes and whether the apparent rebound in U.S. building can offset that weakness.
The U.S. Commerce Department is expected to report that retail sales increased 0.2 percent in July, after rising 0.2 percent in June. (0830/1230) Separately, the Commerce Department is expected to issue Business Inventories for June. (1000/1400) Meanwhile, United States MBA is expected to release its weekly Mortgage Market Index. (0700/1100)
Department store operator Macy's is scheduled to report second-quarter results after a harsh U.S. winter hurt its first quarter. Analysts expect the company's sales to rise 4 percent. Investors will look for a possible raise in 2014 forecast. They will also look for details on whether store-remodelling and sales initiatives helped boost sales, and for possible increases to its share repurchases program and dividend. Data storage equipment and services provider NetApp is likely to post first-quarter profit and revenue above analysts' estimates, according to Thomson Reuters StarMine data. Analysts expect the company to benefit from higher demand for its storage products.
Mining financier Silver Wheaton is scheduled to report second-quarter results after the markets close. Vancouver-based Silver Wheaton helps finance mining projects in exchange for the right to buy future silver production at a set price. The company reported a 40 percent fall in first-quarter profit, hurt by a decline in metal prices. Canada's Tekmira Pharmaceuticals, which has an experimental Ebola treatment, is scheduled to report second-quarter results. Last week, the U.S. Food and Drug Administration cleared the drug for potential use in humans infected with the virus. Investors will look for any details on whether Tekmira plans to actually make the treatment available to people in West Africa, and how much it could produce quickly. Solar panel maker Canadian Solar is expected to report a second-quarter profit, as it benefits from higher shipments. The company is targeting new solar markets in South Africa, South America and the Middle East. Bank of England Governor Mark Carney is scheduled to present updated economic forecasts. The central bank is not expected to make many changes to growth and inflation forecasts. A Reuters poll found that the bank is expected to revise down its own 2014 and 2015 wage growth forecasts from 2.5 percent and 3.5 percent. The poll pegged wage inflation at 1.5 percent this year and 3.0 percent next year. Inflation will average 1.7 percent this year and 1.9 percent in 2015 - shy of the central bank's 2 percent target, according to the poll. (0530/0930) (All analysts' estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Nandi Kaul in Bangalore; Editing by Kirti Pandey)
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