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