What to Watch in the Day Ahead - Thursday, Aug. 20
(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) Hardware and software maker Hewlett-Packard Co is expected to report third-quarter earnings slightly above the average analyst estimate. HP has been cutting costs and focusing on higher-margin sales in the face of a strong dollar and weak enterprise demand for its services. The company is also in the process of separating its computer and printer businesses from its faster-growing corporate hardware and service operations. Salesforce.com Inc, the world's biggest maker of online sales software, is expected to report second-quarter profit above analysts' expectations. Salesforce has struggled to earn consistent profits despite strong revenue growth over the past few years, hurt by higher spending on activities such as hiring. The company reported a profit for the first time in seven quarters in May. Investors and analysts will look for improvement in the company's margins in the quarter. The National Association of Realtors releases home sales data for July. Existing home sales are expected to have slipped to an annual rate of 5.44 million units last month from 5.49 million units in June. Separately, the Philadelphia Federal Reserve will release its business activity index for August. Economists expect the index to rise to 7.0 in August from 5.7 in July. (1000/1400) The Labor Department will also release unemployment data for the previous week. The number of Americans filing new applications for unemployment benefits is expected to have fallen by 2,000 to 272,000 in the week. (0830/1230) Apparel retailer Gap Inc is expected to report second-quarter profit below analysts' expectations. Lack of trendy merchandise has hurt sales at the company's flagship Gap brand, forcing it to discount heavily to bring in customers. Shipment delays due to disruptions at West Coast ports early this year and a strong dollar are also expected to hurt Gap's results. Investors will look for comments on recovery at the Gap brand and the company's performance so far in the third quarter. Canadian wholesale trade is expected to have risen 1 percent in June. Sales fell 1 percent in May due to weakness in the motor vehicle and parts category.(0830/1230) Mexico's statistics institute will release gross domestic product data for the second quarter. The country's central bank has said it expects quarter-on-quarter growth of 0.4 percent, slackening from the first quarter after weaker-than-expected exports and a slump in domestic oil output. Meanwhile, data will show how economic activity was in June, after it slowed to a nine-month low in May. (0900/1300) Also, Brazil's unemployment rate is expected to have surged for the seventh straight month. The jobless rate is expected to have increased to 7.05 percent in July from 6.90 the previous month. LIVECHAT: FX Corner - Kathleen Brooks, Analyst, Forex.Com Kathleen Brooks, analyst at Forex.com, joins us at (0500/0900) to share her outlook for major currencies once markets pick up again in September. Are any poised to break out of their ranges? Otherwise, which crosses offer the best opportunities to take a view? To join the forum, click here: bit.ly/1kTxdKD LIVECHAT: Trading Canada - Gauging energy prices with Colin Cieszynski The glut in oil, fueled by Canada's booming shale business, has big implications for the Canadian economy. Join Colin Cieszynski, chief market strategist at CMC Markets, for a discussion on how energy prices are affecting Canada and other resource-focused economies at (1030/1430). To join the discussion, click here: bit.ly/1kTxdKD (All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise) (Compiled by Hardik Vyas in Bengaluru; Editing by Kirti Pandey)
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