What to Watch in the Day Ahead - Friday, Oct. 31
(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) Oil companies and Dow components Exxon Mobil Corp and Chevron Corp are due to report their third-quarter results, which are expected to reflect a drop in the price of crude oil. Investors will look for updates on Exxon's projects in Russia, where sanctions have stalled some operations, and learn if the timetables for new projects aimed at growing oil and gas output are intact. Wall Street analysts are expected to grill Chevron executives on the status of delayed growth projects. U.S. consumer spending likely closed the third quarter on a soft note, setting up for a somewhat weaker fourth quarter. Economists expect the Commerce Department to report that consumer spending rose just 0.1 percent in September (0830/1230). Institute for Supply Management-Chicago Purchasing Managers Index (0945/1345) and the University of Michigan's consumer sentiment data are also scheduled for release (0955/1355). Drugmaker AbbVie Inc, which earlier this month abandoned its $55 billion tax-inversion deal to buy Dublin drugmaker Shire, is expected to report sharply higher third-quarter sales as growth of its Humira arthritis drug offset the impact of falling sales of many of its other products. The company's dependence on Humira will underscore its need to pursue other deals in order to replenish its pipeline of experimental drugs. Third-quarter results from Anheuser-Busch InBev SA, the world's biggest beer maker, may seem a little flat after a boost from the soccer World Cup in the second quarter. However, sales declines are likely in Brazil, its second-largest market. Japan's Sony Corp reports results for the July-September quarter. After announcing a massive writedown on its mobile unit in September, the company is expected to cut the sales forecast for its Xperia smartphones. The company is also expected to report the progress on a restructuring program, under which it will cut 1,000 jobs by March 2015. Timber conglomerate Weyerhaeuser Co, which manages 20 million acres of forests, is expected to report a higher third-quarter profit. The company, in its second-quarter earnings release in August, said third-quarter results will include a net gain of about $1 billion on the divestiture of its home building and real estate company WRECO. However, Weyerhaeuser is expected to report lower third-quarter revenue, hurt by lower realizations from lumber and oriented strand board. Cleaning products maker Clorox Inc will report its first-quarter results before the bell. The company said last month that its chief executive of eight years, Donald Knauss, was stepping down, and days later announced it was exiting Venezuela as the business was "no longer viable." Clorox has missed the Street's profit estimates in the past four quarters. Oshkosh Corp, a manufacturer of specialty trucks and construction equipment, is expected to report a higher fourth-quarter profit as increased sales to builders offsets the impact of a continued decline in sales to military customers. Statistics Canada releases gross domestic product data for August. Analysts expect the real gross domestic product to be unchanged from July (0830/1230). Mexico's central bank is expected to hold its benchmark interest rate and argue that a recent spike in inflation will fade next year. Fifteen analysts surveyed by Reuters expect the bank to leave its main interest rate unchanged at 3 percent while one analyst expected a 25-basis-point cut after weak growth in the third quarter. Separately, Brazil's central bank releases its monthly report on the federal budget. The primary balance is a gauge closely watched by investors because it measures a country's ability to service its debt (0830/1230). (Compiled by Ayesha Sruti Ahmed in Bangalore; Editing by Kirti Pandey)
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