(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 Commerce Department will release factory orders data for April. Demand for U.S. manufactured goods is likely to be flat, after a stronger prior month when demand for transportation equipment helped drive orders up 2.1 percent, the biggest increase in eight consecutive months. The U.S. manufacturing sector has been hampered by a stronger dollar and weaker demand for U.S. goods abroad and lower crude oil prices that have hurt the profits of oil firms. (1000/1400)
The U.S. auto industry will report industry sales for May and analysts expect demand to be flat or down slightly from last year, largely due to one less selling day in the month and lower demand from fleet customers. However, the annual sales rate for the month is expected to jump back above 17 million vehicles as retail customers maintain demand for vehicles, especially pickups and SUVs, amid lower gasoline prices. (1330/1730)
Medical device maker Medtronic Plc is expected to beat Wall Street expectations, according to Thomson Reuters StarMine. When the company reports its fourth-quarter results, it is expected to have performed strongly in various segments including the surgical solutions business from its recent acquisition, Covidien.
Discount retailer Dollar General Corp is expected to report a rise in first-quarter sales, helped by demand for lower-margin goods such as tobacco. After being jilted by Family Dollar, which accepted a lower buyout bid, Dollar General had said it would speed up store expansion to bolster its position among U.S. discount retailers. Investors will look out for updates on full-year guidance and any news on possible acquisitions.
Federal Reserve Board Governor Lael Brainard speaks on “The U.S. economic outlook and monetary policy” at the Center for Strategic and International Studies, Washington. (1000 /1400) 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 in a webcast talk at an investor conference in New York.
Canadian automakers report their sales for the month of May. The data may offer an early indication of how lower oil prices, which have slowed growth in Canada, are affecting the auto sector.
Mexico’s central bank releases its survey of inflation and growth. This closely watched survey of economists by the central bank sheds light on analyst expectations for growth and inflation. Separately, Brazil’s government statistics agency IBGE is scheduled to report that industrial production fell 1.40 percent in April after dropping 0.8 percent in March.
LIVE CHAT: Gauging the sustainability of rising home sales ahead of rate liftoff with Wilmington Trust Chief Economist Luke Tilley Few areas of the economy have been quite as robust as the housing market, but with the Fed preparing to normalize interest rates the market for new and existing homes could be at risk. Luke Tilley, Chief Economist for Wilmington Trust takes questions in the Global Markets Forum at 1000 ET (1400 GMT) To join the forum, click here bit.ly/1kTxdKD (Compiled by Nivedita Balu; Editing by Joyjeet Das)