What to Watch in the Day Ahead - Friday, Feb. 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) JM Smucker Co, the maker of Folgers coffee, is likely to report third-quarter profit below analysts' expectations, according to Thomson Reuters StarMine data. In November, the company said it was a "misstep" to hike prices in June, which led to a sharp drop in sales volumes as customers delayed purchases and shifted to cheaper private-label brands. However, Smucker extended the price hikes to its higher-profit brands such as Folgers Gourmet Selections and Millstone in January, raising the prices of its K-Cup packs sold in the United States by about 8 percent. This followed a 9 percent increase in K-Cup prices by competitor Kraft Foods Group Inc, which makes Maxwell House coffee. Investors will be looking for how the latest price increase was received by customers, and Smucker's integration plans for its $3.2 billion acquisition of pet food maker Big Heart Pet Brands. January import prices likely dropped for a seventh straight month, driven by falling petroleum costs and a boom in U.S. shale gas production, which has caused an excess in foreign oil supplies and pushed prices down. Analysts polled by Reuters forecast a 3.2 percent drop in import prices and a 0.9 percent drop in U.S. export prices last month. (0830/1330) Separately, the Thomson Reuters/University of Michigan's preliminary February reading on the overall index on consumer sentiment is scheduled to be released. (1000/1500) Advertising company Interpublic Group of Cos Inc is expected to report fourth-quarter revenue below estimates, according to Thomson Reuters StarMine data. A slowdown in advertising spending, alongside foreign exchange currency volatility, is expected to affect advertising companies. Advertisers haven't been boosting their budgets but neither have they pulled back. Furthermore, media companies such as Walt Disney Co and Viacom have indicated stabilization in advertising spending in the United States and a return of ad spending in broadcasting. Analysts will be keeping an eye on the company's outlook. ArcelorMittal SA is set to post its fourth-quarter and full-year results. Steel is ticking along nicely but the company's iron ore business is suffering from low prices. The latter prompted Standard & Poor's this month to cut its credit rating on the firm. Investors will be looking for the company's earnings before interest, taxes, depreciation and amortization picking up from a relatively modest $7 billion in 2014. Results are also likely to come with a new set of steel consumption forecasts. Federal Reserve Bank of Dallas President Richard Fisher speaks on "Reflections on (Almost) 10 Years at the Fed" before a community luncheon. (1330/1830) TransCanada Corp, the company behind the controversial Keystone XL pipeline and the ambitious C$12 billion Energy East project, reports fourth-quarter results. Toymaker Hasbro Inc's Chief Executive Brian Goldner and Chief Financial Officer Deborah Thomas will webcast their presentations from the company's annual investor event at the Toy Fair. Investors will be looking for details on the company's new products and plans for 2015. The White House will host a cybersecurity summit that will bring together government officials and CEOs from companies such as Apple Inc, MasterCard Inc and Paypal. The seven-hour event at Stanford University will include panel discussions on topics such as information sharing and secure payment technologies. U.S. President Barack Obama will deliver a keynote speech. Canadian manufacturing sales are expected to have gained by 1.0 percent in December, recovering somewhat after declining for the previous two months. Peru's central bank decides whether to hold the benchmark interest rate at 3.25 percent after surprising the market by cutting it by 25 basis points in January. The central bank said the lowered rate did not necessarily mark the start of a series of reductions. However, growth remains well below the potential rate and the central bank said it now sees inflation cooling more rapidly and the sol currency less volatile than in previous months. (1900/0000) Separately, Argentina is due to release January consumer inflation data. (1400/1900) (Compiled by Sourav Bose in Bengaluru; Editing by Kirti Pandey)
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