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WEEK AHEAD The markets look forward to a slew of data and a deadline for Greece to pay its creditors at the end of the week. Reports on manufacturing sentiment, car sales and job growth dominate the calendar. If recent housing numbers are mirrored in other areas of the economy, it will support the idea that the Fed change rates in September. Some activity in the dollar and the bond market should be expected if Greece does not work out an agreement or fails to pay.
On Tuesday, the Commerce Department will release factory orders data for April. Analysts expect the orders to have remained unchanged, after rising 2.1 percent in March. The department will release trade deficit data for April on Wednesday. Economists expect the trade deficit to have reduced to $44.0 billion from $ 51.4 billion in March. U.S. private employers are expected to have added 200,000 jobs in May, compared with 169,000 jobs in April, according to the ADP National Employment Report, to be issued on Wednesday. On Thursday, the Labor Department issues weekly data for jobless claims. On the same day, the department is scheduled to issue data for revised labor costs for the first quarter, expected to have risen to 5.9 percent from 5.0 percent in the previous quarter. On Friday, the Labor Department issues jobs data for May. Non-farm payrolls are expected to have risen 225,000 from the 223,000 reported in April.
Medical device maker Medtronic Plc is likely to beat Wall Street expectations, according to Thomson Reuters StarMine. When the company reports fourth-quarter results on Tuesday, it is expecxted to have performed strongly in various segments including the surgical solutions business from its recent acquisition - Covidien.
Federal Reserve Bank of Chicago President Charles Evans speaks before the Chicago Banking Symposium, in Chicago on Wednesday. On Friday, Federal Reserve Bank of New York President William Dudley speaks before the Economic Club of Minnesota June Luncheon, in Minneapolis, Minnesota. JPMorgan Chase consumer banking chief Gordon Smith, who runs the biggest single division of the biggest U.S. bank, is expected to review the company’s home mortgage and credit card businesses on Tuesday in a webcast talk at an investor conference in New York.
On Tuesday, discount retailer Dollar General Corp will report first-quarter results.
JM Smucker Co, the maker of Folgers coffee and Jif peanut butter, is likely to report fourth-quarter sales on Thursday, above analysts’ average estimate, according to Thomson Reuters StarMine. The company said in February it expects a modest decrease in net sales in the fourth quarter as demand for its coffee products is likely to stay low due to price increases in the United States. But the coffee business is likely to get back on track later this year as bean prices stabilize and the company introduces smaller Folgers coffee cans to win back customers it lost after raising prices.
Mining equipment manufacturer Joy Global Inc is expected to report lower second-quarter revenue and profit on Thursday, as coal miners cut production. Investors will look for an update on full-year financial forecast.
Canadian athletic apparel company Lululemon Athletica will hold annual general meeting in Vancouver on Wednesday. Shareholders have spoken out in recent weeks, urging the yoga-wear maker to improve its corporate governance and calling for board reform.
Credit card swipe machine maker Verifone Systems Inc is expected to report second-quarter profit and revenue above the average analyst estimate on Thursday, according to Thomson Reuters StarMine data. Verifone expects its European business to get more clients as the industry continues to uprade to near field communication technology. In the first quarter, the company got about 67 percent of its total revenue from outside North America.
Chinese company Yingli Green Energy Holding Co Ltd reports first-quarter results on Friday. It is expected to report a smaller loss for the eighth straight quarter, helped by strong global demand for solar panels. Yingli, which flagged this month its inability to continue as a “going concern” due to substantial indebtedness, has been hurt by rising expenses as it moved manufacturing globally to bypass trade tariffs. Investors will want to know about the steps Yingli is taking to reduce debt. They will also want to know about how the company is cutting expenses and if Yingli will consider filing for bankruptcy protection.
Canadian specialty tea retailer David’s Tea’s U.S. initial public offering on Friday is expected to raise up to $82 million, valuing the company at up to $370 million. David’s Tea sells over 150 types of tea, including exotic infusions from around the world, and tea-related gifts and accessories in more than 150 locations throughout the U.S. and Canada. David’s Tea investors include Lululemon Athletica founder Chip Wilson and Highland Consumer Fund.
On Thursday, Mexico’s central bank is expected to hold its benchmark interest rate steady at 3.0 percent to support the economy after inflation cooled to its lowest in more than nine years in early May despite a deep slump in the peso this year. Consumer confidence data from May on Friday will show if sentiment is improving or not after a sharp drop in April, a key reading to gauge if sluggish domestic demand could pick up this year.
The Commerce Department issues personal income data for April which is expected to show an increase of 0.3 percent. (0830/1230) The department will also issue construction spending data for April. Analysts expect spending to have risen 0.8 percent after falling 0.6 percent in March. (1000/1400) The Institute for Supply Management releases its manufacturing index for May, which is expected to have increased to 52.0 from 51.5 in April. (1000/1400)
Federal Reserve Bank of Boston President Eric Rosengren speaks before the 2015 Workforce Stars Breakfast hosted by Capital Workforce Partners, in Hartford, Connecticut.
Clothing company PVH Corp is expected to report first-quarter results. The company said in March it expected the stronger dollar to affect its results in the quarter.
Brazil’s Ministry of Development, Industry and Foreign Trade releases trade balance data for May. (1400/1800) In a separate report, Brazil’s central bank releases results of a weekly economic survey with more than 100 financial institutions. This will include forecasts for GDP, interest rates and inflation rates.
Mexico’s PMI reading for May will show if factory sentiment is picking up or not following weakness in exports during the first quarter. (0100/0500) Separately, Peru’s state statistics agency Inei is expected to release inflation data for May. The country’s inflation rose 0.39 percent in April. (0100/1500)
LIVE CHAT: Finally, the NBA and NHL finals are here Join sports editor Frank Pingue to pick favorites after two game-7 conference finals in the NHL and ahead of the NBA clash between the Golden State Warriors and Lebron James's Cleveland Cavaliers. To join the forum, click here bit.ly/1kTxdKD (Compiled by Nivedita Balu; Edited by Don Sebastian)