What to Watch in the Day Ahead - Wednesday, Aug. 26

Tue Aug 25, 2015 2:35pm 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)

Investors will look for the non-defense capital goods orders excluding aircraft, a closely
watched proxy for business spending plans, which are expected to have increased 0.4 percent in
July, a little down from June's 0.9 percent rise. (0830/1230) Also, the U.S. Commerce Department
issues revised building permit figures for July.
Human resource software company Workday Inc is likely to report a smaller-than-expected
second-quarter loss. The company makes software, which helps manage employee performance and
payroll, and it hopes to make a cutback in spending on marketing and product development. The
company's revenue is expected to come above analysts' estimate, helped by continued subscription
growth for its web-based human resource management software.
PVH Corp, the owner of Tommy Hilfiger and Calvin Klein brands, is expected to report
second-quarter sales below estimates. PVH, which gets a majority of sales from international
markets, is affected by a strong dollar that reduces the value of those sales. Sales are likely
to fall, in part due to currency impact in the core Tommy Hilfiger brand, analysts say. The
company has been increasing promotions in the United States to fend off fast fashion retailers
who have taken away shoppers. Investors will be looking for any new license acquisitions by the
company and updates to its forecast.
Federal Reserve Bank of New York President William Dudley speaks on the regional economic
outlook and efforts to support the Second District at a briefing hosted by the Federal Reserve
Bank of New York, in New York. (1000/1400)
Royal Bank of Canada, Canada's biggest lender, is seen posting a higher third-quarter profit in
the face of a slowing economy and a slump in the energy sector. Investors will be watching for
signs of a pickup in its wealth management and capital markets businesses.
Teen apparel retailer Abercrombie & Fitch Co is expected to report its tenth straight quarter of
falling sales, according to Thomson Reuters I/B/E/S. The company's North America sales are
expected to fall again, mainly due to weak traffic and demand for its clothes, heavy discounts
and intense competition. While Abercrombie has seen an improvement at its Hollister brand in
Europe, a stronger dollar is also expected to hurt the company in the second quarter as it gets
nearly 40 percent of revenue from international markets. The company last week hired six
designers and executives from top brands such as Ralph Lauren and Tommy Hilfiger as it looks to
turnaround sales. When the company releases its second-quarter results, investors will look for
comments on quarter-to-date trends, back-to-school sales, impact of price cuts in Europe, plans
to reinvigorate traffic, and benefits from lower cotton costs.
Brazil's central bank will release July data for bank lending, which rose slightly in June.
Meanwhile, Argentina's government is due to release July industrial production data. Industrial
output grew by 0.9 percent in June, compared with the same month a year earlier.
LIVECHAT: FX CORNER with Ilya Spivak, currency analyst, Daily FX
Join Ilya Spivak, currency analyst at Daily FX, at 0500 ET/0900 GMT for a look at the major
currency pairs. To join the Global Markets Forum, click here bit.ly/1kTxdKD
(All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise)

 (Compiled by Sourav Bose in Bengaluru; Edited by Maju Samuel)