What to Watch in the Day Ahead - Tuesday, Jan. 27
(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) Apple Inc is expected to report one of its strongest quarters ever, helped by strong unit sales of its larger-screen iPhone 6 and 6 Plus. The new iPhones are helping Apple chip away at Samsung Electronics' dominant position in its home turf of South Korea, according to a monthly report released by Hong Kong-based market research company Counterpoint. November was the first full month that the iPhones were sold in the country. Some analysts have speculated that Apple, which gets more than half its revenue from outside the United States, will feel the weight of a surging dollar on its results.
Wall Street expects Pfizer Inc, the largest U.S. drugmaker by sales, to report higher fourth-quarter results, helped by sales of new cancer treatments and growing sales of mainstay brands such as Lyrica for pain and its Prevnar vaccine against pneumococcal infections. Investors will look for clues about whether Pfizer is still interested in a mega-merger to help bolster future earnings, following its failed efforts last year to buy British drugmaker AstraZeneca and move its tax base to Britain.
The Federal Open Market Committee begins a two-day meeting on interest-rate policy. Separately, the Federal Reserve Bank of Richmond issues manufacturing and services indices for January (1000/1500), while the Federal Reserve Bank of Dallas releases the service sector outlook survey for January. (1030/1530)
Consumer goods giant Procter & Gamble, which said in August last year it would sell half its brands in the next two years and cut jobs to revive sales growth and save costs, reports earnings before the market opens. The company has since sold brands including Duracell and has undertaken several management reshuffles. Investors will look for more details on how it plans to fix its ailing beauty business, which brands the company plans to sell next and where it will look to cut costs, as well as comments on impact of a stronger dollar, which hurt quarterly sales at rival Kimberly-Clark.
AT&T Inc, the No. 2 U.S carrier, will report fourth-quarter earnings following a flurry of promotional activity in the holiday season that analysts expect to have squeezed margins and pressured subscriber churn and addition of new postpaid users. Investors will look for details on 2015 guidance and AT&T's investments in the AWS-3 spectrum auction as the telecom price war mounts and the company readies to close its deal to buy DirectTV later this year.
Amgen Inc is expected to post a higher fourth-quarter profit and provide its first forecast for 2015. Investors will look for news on the ongoing restructuring at the world's largest biotechnology company and any new insight into the potential impact of the approval of the first U.S. biosimilar of the company's drug Neupogen, as well as how foreign exchange rates will influence 2015 earnings.
Bristol-Myers Squibb Co is expected to report lower fourth-quarter sales and earnings, amid falling sales of its treatments for HIV and the loss of diabetes drugs that it sold off earlier in the year to AstraZeneca Plc. Investors will focus on how the company's promising array of immuno-oncology drugs are faring in clinical trials, and how well Opdivo is doing after being approved in Japan and the United States to treat melanoma.
The Commerce Department's durable goods orders report is expected to show orders rose 0.5 percent in December after falling 0.9 percent in November. Core capital goods orders are expected to have risen 0.5 percent last month after declining 0.5 percent in November (0830/1330). Commerce Department data is expected to show new home sales increased in December to 450,000 units from 438,000 units in November (1000/1500). The Conference Board is expected to report that its consumer confidence index rose to 95 in January from 92.6 in December (1000/1500). Separately, Standard & Poor's releases its S&P Case/Shiller Home Price Index for November. (0900/1400)
Diversified manufacturer 3M Co's fourth-quarter revenue is expected to rise by about 3 percent. Investors will be looking at the extent of the fallout from the strong dollar, given that 3M gets more than 60 percent of its sales from outside the United States. Continued...