What to Watch in the Day Ahead - Wednesday, Feb 10
(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) Federal Reserve Chair Janet Yellen delivers semi-annual monetary policy testimony before the House Financial Services Committee in Washington in what will be her first major appearance of the year and since the Fed began raising rates. The meeting will give the best insight to date on whether the central bank feels it can proceed with a rate tightening cycle or will be waylaid by problems around the world including the oil rout and slumping Chinese growth. (1000/1500) Later, Federal Reserve Bank of San Francisco President John Williams speaks before the 2016 National Interagency Community Reinvestment Conference, "Pathways to Economic Opportunity," sponsored by the Federal Reserve Bank of San Francisco, Federal Deposit Insurance Corp, Office of the Comptroller of the Currency and the Community Development Financial Institutions Fund. (1330/1830) Cisco Systems Inc is expected to report a fall in second-quarter revenue and profit, according to Thomson Reuters StarMine. The network equipment maker may have been hurt by a slowdown in order growth and weakness in its enterprise business outside the United States. A strong dollar probably affected demand for Cisco's enterprise products in Asia-Pacific, Canada and Latin America. Cisco has been actively buying other companies to beef up its enterprise and wireless security businesses. Microblogging service provider Twitter Inc is expected to report a rise in fourth-quarter profit, beating analysts' estimate, according to Thomson Reuters StarMine. Chief Executive Jack Dorsey, who took the top job in 2015, has rolled out new services and products, but analysts and investors remain wary. Investors will look for details on the company's strategy for fiscal 2017 following a recent management shake-up. The U.S. Treasury Department's budget report is expected to show a budget surplus of $45 billion in January, according to analysts polled by Reuters. The budget ran in red with a $14 billion deficit in the prior month. (1400/1900) Time Warner Inc is expected to report a fall in fourth-quarter profit, hurt by a strong dollar. The owner of cable channels including TNT and TBS Cartoon Network had also warned of lower ad revenue due to a drop in ratings of its key domestic entertainment networks. Investors will look for details on a sale or spinoff of the company's premium cable channel, HBO. Mylan NV's profit is expected to beat the average analyst estimate for the sixth straight quarter, according to Thomson Reuters StarMine. The drugmaker was helped by higher sales of its generic drugs in North America. Investors will be keen to hear about Netherlands-based Mylan's deals strategy after shareholders of smaller rival Perrigo Co Plc snubbed its $26 billion hostile bid late last year. Electric car maker Tesla Motors Inc will report fourth-quarter results after markets close. Analysts expect quarterly earnings of 8 cents per share on revenue of $1.79 billion. Chief Executive Elon Musk could offer insights on future model plans and on production of the new Model X. Investors are counting on the Model X, an SUV designed to compete with those from luxury automakers, to make the company profitable after years of losses. Upscale grocer Whole Foods Market Inc is expected to report first-quarter profit below analysts' estimates, according to Thomson Reuters StarMine. The company's sales have been hit due to fewer customer visits, despite price cuts, as big-box retailers and supermarkets increasingly sell organic foods at comparatively lower prices. Investors will look for current-quarter trends, comments on the industry and forecast. Humana Inc is seen reporting fourth-quarter earnings above analysts' expectations, according to Thomson Reuters StarMine. The fifth-largest U.S. health insurer is expected to have benefited from strength in its large Medicare Advantage business. The company, which is being bought by larger rival Aetna Inc in a $37 billion deal, may also be helped by a weak flu season. Zynga Inc is expected to report fourth-quarter revenue above analysts' estimates, according to Thomson Reuters StarMine. Founder Mark Pincus, who returned as chief executive in 2015, has been focusing on cutting costs and reducing the "FarmVille" maker's slate of games. A volatile stock market and plummeting oil prices are expected to dent investments when alternative asset managers KKR & Co LP and Carlyle Group LP report fourth-quarter earnings. KKR is expected to announce that its earnings per share more than doubled in the final quarter, while Carlyle is expected to announce a 45 percent annual drop in earnings. Kinross Gold, the world's fifth-biggest bullion miner by output, is expected to report a bigger fourth-quarter loss on lower gold prices and production. Kinross, which has been under pressure to boost its exposure to safer mining jurisdictions, said late last year that it would spend $610 million in cash to buy two mining assets in Nevada from Barrick Gold and it also struck an exploration joint venture with Barrick for one property. Some viewed that price tag as steep, but Kinross said the mine and properties had big potential that wasn't fully appreciated by the market because they were a relatively small part of Barrick. LIVECHAT-EQUITY MARKETS with Reuters correspondent Alistair Smout Join Reuters equity correspondent Alistair Smout for a round up of the themes driving equity markets. (0900 ET/1400 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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