April 7, 2015 / 7:04 PM / 3 years ago

What to Watch in the Day Ahead - Wednesday, April 8

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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The Federal Reserve releases minutes from its March 17-18 monetary policy meeting, which should
shed light on its internal debate over the rate hike plans. At the meeting, the Fed opened the
door to a possible June rate hike by dropping a vow to exercise patience in deciding when to
raise rates from rock-bottom levels. But officials also downgraded their economic forecasts and
lowered their projections for future interest rates. Investors will parse the minutes to see
whether the shift in their forecasts is due to worries the fundamentals of the economy are not
as strong as they had thought, or whether it is simply to take into account a
weaker-than-expected start to the year.
Aluminum maker Alcoa Inc kicks off U.S. corporate earnings season after markets close. The
company, which will report first-quarter results, has been shifting away from its traditional
high-cost aluminum smelting business into more value-added products in the automotive and
aerospace industries. After a flurry of acquisitions and an announcement that it was reviewing
14 percent of its smelting capacity (followed by the curtailment of its smelting capacity in
Brazil announced on March 30), analyst will be watching for commentary on Alcoa's transformation
and further acquisitions.
Discount retailer Family Dollar Stores Inc, which has agreed to be acquired by smaller rival
Dollar Tree, is likely to report profit for the second quarter above analysts' average estimate.
The No. 2 U.S. discount retailer stopped giving forecast from February, citing the impending
deal, but estimated a 4.1 percent rise in net sales in the two months ended Jan. 31. Investors
will be looking for updates on the acquisition and Federal Trade Commission's decision on the
number of stores that Dollar Tree needs to divest to win regulatory approval for the deal.
Rite Aid Corp reports fourth-quarter results for the fiscal year ending February. The company
has made progress on its turnaround efforts including a renewed distribution agreement with
McKesson, purchase of pharmacy benefit manager Envision Rx and continued rollout of its wellness
format. Investors will be looking for guidance for fiscal 2016, comments on plans to improve
in-stock positions and reduce purchasing costs along with new plans for its wellness formats.
Federal Reserve Board Governor Jerome Powell speaks on "Challenges for Monetary Policy" before
the C. Peter McColough Series on International Economics hosted by the Council on Foreign
Relations. (0800/1200)
The Federal Reserve Bank of Kansas City issues Labor Market Conditions Indicator (LCMI) for
March. The LCMI are two monthly measures of labor market conditions based on 24 labor market
variables. One indicator measures the level of activity in labor markets and the other indicator
measures momentum in labor markets.
Canadian Finance Minister Joe Oliver will give a speech on the state of the economy ahead of the
April 21 federal budget. He will address the Economic Club of Canada. He usually meets reporters
after such appearances. Reporters will look for any hints of the contents of the budget. He has
already pledged that it will be balanced and will not contain new taxes.
Canadian Association of Petroleum Producers, Canada's largest oil lobby group, holds its annual
investment symposium in Toronto, including a keynote speech by Russ Girling, TransCanada's chief
executive and a panel on transportation on the second day featuring executives from pipeline and
rail companies. Presentations are grouped around issues such as "Why are Assets Being Sold in
Canada to Buy into U.S. Plays" and include panels of oil industry executives.
Statistics agency IBGE releases Brazil's benchmark IPCA consumer price index for March. The
monthly inflation rate probably remained above 1 percent in March even as the economy slips
closer to recession, keeping the central bank under pressure to continue raising interest rate.
Chile's government releases data for March inflation, which is expected to have increased by 0.8
percent from the previous month, but numbers have consistently surprised on the upside over the
last year. 

 (Compiled by Sourav Bose in Bengaluru; Edited by Don Sebastian)
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