May 13, 2014 / 6:49 PM / 4 years ago

What to Watch in The Day Ahead; Wednesday, May 14

(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 component Cisco is scheduled to report third-quarter results. It had earlier forecast a revenue slide in the quarter, underlining its struggle to rekindle demand in emerging markets like China even as hardware spending sags globally. Producer prices likely continued to rise in April albeit at a slower pace, after a surge in prices of food and trade services led to the largest increase in nine months in March. The U.S. Department of Labor is expected to report that the Producer Price Index for final demand inched up 0.2 percent in April, from the prior month’s 0.5 percent rise. (0830/1230) Japan’s Sony Corp is scheduled to announce earnings for the full year to March and forecasts for the current year. The company cut its guidance for the year just ended for the third time at the start of the month, increasing the pressure on CEO Kazuo Hirai, who had promised to pull its flagship electronics division out of the red. Analysts expect modest first-quarter sales growth when Macy’s reports results. The department store operator, like other U.S. retailers, is likely to have been hit by the persistent cold weather. After posting weaker-than-expected comparable sales for the fourth quarter, Macy’s CEO had said business would return to normal once the weather improved and the company left its full-year forecast unchanged. Investors will be eager to see whether the company still stands by this guidance. Deere & Co, the world’s largest maker of tractors, harvesters and other agricultural equipment, had warned that demand for its products would fall in most markets following a bumper crop that sent commodity prices lower. Analysts expect crop receipts to fall 10 percent or more this year when the company reports second-quarter results. Japan’s top three banks - MUFG, Mizuho and SMFG - are expected to announce fourth-quarter and full-year earnings. A stock market rally in Japan fueled by expectations for Prime Minister Abe’s economic growth initiatives helped the lenders deliver near-record profits for the year ended in March. A gradual improvement in the overall economy also drastically reduced bad loan costs. Flush with cash, all three have already announced dividend hikes. But the banks are not expecting to be as lucky this year, as market euphoria over Abenomics is quickly losing steam. Investors will watch for how the banks are going to make up for the absence of the Abenomics tailwind they enjoyed last year. Plug Power is expected to report a smaller first-quarter loss helped by a rise in orders for its hydrogen fuel cells. The company is expected to post its first-ever profit in the fourth quarter this year as it expects orders to exceed $150 million in 2014, almost four times last year’s total. (Compiled by Ayesha Sruti Ahmed in Bangalore)

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