What to Watch in the Day Ahead - Thursday, Feb. 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) The Labor Department issues Consumer Price Index and weekly jobless claims data. The index is expected to have decreased 0.6 percent in January (0830/1330), while initial jobless claims are expected to have increased to 290,000 from 283,000 the previous week (0830/1330). The Commerce Department releases durable goods data for January, which is expected to show a rise of 1.7 percent after falling 3.3 percent in December (0830/1330).
Department store operator Kohl's Corp is expected to report fourth-quarter sales and profit above analysts' estimates, according to Thomson Reuters StarMine. The company said in February same-store sales rose in the fourth quarter, the first quarterly growth after five quarters of decline. Investors will be watching out for commentary on full-year forecast and updates on sales trends during the first two months of the year.
Apparel retailer Gap Inc is expected to report a fourth-quarter profit above the analysts' average estimates, according to Thomson Reuters StarMine. The company reported a rise in fourth-quarter sales and raised its full-year profit estimate, helped by strong demand for its Old Navy clothing during the holiday Season. Investors will look for comments from new CEO Art Peck about his plans to revive the Gap brand.
Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, Canada's No. 2 and 5 lenders, will report first-quarter results. Both banks are expected to post profits, but investors will be watching closely for indications of how sluggish economic growth and a sharp fall in oil prices are affecting their loan books.
Federal Reserve Bank of Atlanta President Dennis Lockhart speaks on monetary policy and the economic outlook before the 2015 Banking Outlook Conference (1300/1800). Federal Reserve Bank of Dallas President Richard Fisher gives a lecture on "Reflections on 10 Years at the Fed: Through the Financial Crisis" at an event hosted by the Imperial College of London Brevan Howard Centre for Financial Analysis & the Centre for Economic Policy Research (1315/1815).
J.C. Penney is expected to post a net profit of $33 million for the fourth quarter, boosted by a solid holiday season. The department store operator said last month same-store sales rose 3.7 percent during November and December. It said it expected same-store sales for the fourth quarter through end-January to come in at the upper end of its forecast of 2-4 percent.
Brazilian miner Vale SA reports fourth-quarter and full-year results amid a slump in iron-ore prices, its main profit driver. Investors will be keeping a close eye on just how far the company's profit falls and how it responds to lower prices. Any news on asset sales that might come out of the conference call will also be of interest.
World's largest beermaker Anheuser Busch Inbev SA reports full-year results.
Sears Holdings Inc is expected to post its 11th straight quarterly loss due to sluggish holiday sales at Sears and Kmart stores. When the company reports fourth-quarter results, focus will be on whether it announces fresh asset sales to generate cash. Continued...