What to Watch in the Day Ahead - Friday, Feb 5
(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) U.S. employment growth likely slowed in January as the troubled manufacturing sector shed jobs and the boost from unseasonably mild weather faded. But, a rebound in wages will suggest that the labor market recovery remains intact. Nonfarm payrolls probably increased by 190,000 jobs in January after surging 292,000 in December, according to a Reuters survey of economists. (0830/1330) That would also mark a sharp step-down from an average of 284,000 jobs added per month in the fourth quarter. Though January is traditionally a slow month for hiring, a moderation in job gains could fan worries about the economy after growth slowed abruptly in the fourth quarter. With the unemployment rate expected to have held steady at a 7-1/2-year low of 5 percent and average hourly earnings forecast to increase 0.3 percent, a March interest rate hike from the Federal Reserve remains on the table. (0830/1330) The Commerce Department is expected to report that the trade deficit was little changed at $43 billion in December, according to a Reuters survey of economists. (0830/1330) Beauty products maker Estee Lauder Cos Inc is expected to report second-quarter revenue and profit in line with analysts' estimates, according to Thomson Reuters StarMine. The company has been seeing a revival in sales in North America, helped by product launches and acquisitions. However, it has had to increase promotions to boost sales at its flagship Clinique and Estee Lauder brands. An extensive online presence has helped increase demand for the company's smaller brands such as Smashbox and Bobbi Brown, which cater to younger customers. Although sales in overseas markets such as the UK and China are growing in the double-digit percentage range, a stronger dollar has stripped their value. Tyson Foods Inc, the biggest U.S. meat processor, is expected to report first-quarter sales that beat analysts' estimates, according to Thomson Reuters StarMine. The Hillshire Brands prepared foods business, which Tyson bought in 2014, is expected to have had strong sales in the quarter. Margins in Tyson's chicken business are also likely to have been higher, helped by improving prices and low chicken feed costs. The Canadian economy is forecast to have added just 5,500 jobs in January, a slowdown from the 22,800 pace seen in the final month of 2015. (0830/1330) Analysts will look for job losses in the commodities sector to see if the renewed drop in oil prices since the start of the year is being felt. The modest pace of job growth is expected to keep the unemployment rate unchanged at 7.1 percent in January. (0830/1330) Canada's trade deficit is expected to have widened to C$2.2 billion in December. Economists will be looking to see whether exports derived any benefit from the depreciation in the Canadian dollar. (0830/1330) LIVECHAT-THE WEEKAHEAD with Reuters markets editor Mike Dolan Join Mike Dolan as he goes through the key macroeconomic and political themes for the coming week at 0500 ET/1000 GMT. To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Astha Rawat in Bengaluru; Editing by Savio D'Souza)
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