What to Watch in the Day Ahead - Tuesday, May 5

Mon May 4, 2015 2:34pm EDT
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(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)

Dow company Walt Disney Co is expected to report higher first-quarter revenue after strong results at its theme parks and TV networks. Analysts on average are expecting revenue of $12.2 billion and earnings of $1.10 per share, according to Thomson Reuters I/B/E/S.

U.S. service sector activity is expected to have grown at a steady clip in April, but an expected widening of the nation's trade deficit on the back of a stronger dollar would serve as a reminder of the headwinds still facing the economy. The Institute for Supply Management is expected to report that its services gauge held at 56.3 in April, while data from the Commerce Department is expected to show that the U.S. trade gap widened to $41.3 billion in March from $35.4 billion in February. (1000/1400)(0830/1230)

Sprint Corp, the No.3 U.S. wireless carrier, will report its first-quarter results as it continues to step up promotions and pricing plans to attract subscribers in the middle of its turnaround plan. Analysts say Sprint's cash flow has been squeezed, with heavy investments in network upgrades. Investors will keep an eye out for the company's capital spending plan as well as signs that it may need to consider raising additional funds.

Discovery Communications Inc, the owner of Animal Planet and the Discovery Channel, is expected to report a first-quarter profit above the average analyst estimate, according to Thomson Reuters StarMine. The company, which forecast strong growth in its networks outside the United States, said better pricing would boost its U.S. advertising revenue in 2015.

Satellite TV company DirecTV is expected to post first-quarter revenue above the average analyst estimate, according to Thomson Reuters StarMine data. DirecTV, which is being bought by telecom company AT&T, is expected to benefit from higher subscription fees, even as it loses customers to rivals such as Time Warner Cable, which attracts subscribers by offering bundled Internet and phone connections. Investors will be looking for DirecTV's outlook for the remainder of 2015.

News Corp reports first-quarter results after the markets close, providing some hints on whether declines in global print advertising have eased. Executives are expected to provide updates on the company's efforts to expand into online real estate services.

Mylan NV, at the center of a high-stakes three-way acquisition drama among generic drug makers, is expected to report higher first-quarter profit and sales. But quarterly results will take a back seat as investors look for management commentary on the company's strategy to buy Perrigo and fend off a takeover by Teva Pharmaceuticals.

Toronto-based gold producer Kinross Gold Corp is expected to report weaker first-quarter earnings due to lower gold prices. A weaker rouble is expected to benefit Kinross's flagship Kupol mine in Russia in terms of costs. Investors are likely to ask Kinross, whose production levels will fall sharply toward the end of the decade, about its acquisition plans.   Continued...