(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.) Nike Inc, the world’s largest footwear maker, is expected to report fourth-quarter profit and sales above analysts’ average estimate, according to Thomson Reuters StarMine data. The beat is expected to be driven by high demand for sports and athletic apparel, basketball footwear, and strong sales growth on its website and mobile platforms. A recently-signed merchandising and marketing deal with the NBA and its extensive sponsorship at the 2015 FIFA Women’s World Cup are also expected to drive growth in coming quarters. Investors will look for Nike’s 2016 forecast and its comments on its core running assortment, the NBA deal, as well as the overall industry.
The U.S. Commerce Department releases reading for May consumer spending growth, which had unexpectedly stalled in April. The department also issues May data for personal income, which is likely to have increased 0.5 percent from 0.4 percent in April. In another report from the Labor Department, the number of Americans filing new applications for unemployment benefits is expected to increase by 5000 to a seasonally adjusted 272,000 last week from 267,000 in the previous week. (0830/1230) Separately, financial firm Markit releases its Purchasing Managers Index for June. The PMI index for the services sector is expected to have slightly increased to 56.7 from 56.2 in May. (0945/1345) Also, the Federal Reserve Bank of Kansas City issues composite and manufacturing outlook indices for June. (1100/1500)
Federal Reserve Board Governor Daniel Tarullo participates in “Conversation on the Economy and Financial Regulation” panel before the Council on Foreign Relations’ C. Peter McColough Series on International Economics, in New York, NY. (0800 /1200) Separately, Federal Reserve Board Governor Jerome Powell speaks on “Building a Safer Payment System” before the Federal Reserve Bank of Kansas City Conference, “The Puzzle of Payments Security,” in Kansas City, Missouri. (0945/1345)
Consulting and outsourcing company Accenture Plc reports third-quarter results, which are expected to be slightly above analysts’ average estimate, according to Thomson Reuters StarMine data. Accenture has been benefiting from more business from companies looking to cut costs and improve efficiency in a tough economic environment. Investors will, however, look for the negative impact of a strong dollar, after the company in March cut the top end of its full-year earnings forecast range.
Chipmaker Micron Technology Inc’s third-quarter revenue and profit is expected to be below analysts’ average estimate, according to Thomson Reuters StarMine data, primarily weighed down by weaker-than-expected demand from PC makers. Micron had forecast lower revenue for the quarter, saying it was willing to hold inventories longer in the face of waning demand for electronics featuring its technology. Analysts and investors will be keeping a close eye on its fourth-quarter forecast and commentary how it expects DRAM output to fare for the second half of the year.
Barnes & Noble Inc, the country’s largest bookstore chain, is expected to report a decline in sales for the fourth straight quarter, according to Thomson Reuters I/B/E/S. The decline in fourth-quarter sales is expected to be driven by weak demand for its Nook e-readers and increasing competition from online retailers. To improve customer traffic, Barnes & Noble is focusing more on its retail stores and in August will spin off its college bookstores unit. It has also begun offering toys, craft beer kits and portable turntables together with a wide selection of signed books, and has been overhauling its stores and merchandising. Investors will look for fiscal 2016 forecast, comments on the spin-off and industry trends.
Winnebago Industries Inc, the largest U.S. motorhome maker, reports third-quarter profit below analysts’ average estimate, according to Thomson Reuters StarMine data. The company’s average selling prices of motorhomes are expected to have dropped on lower demand for its top-end motorhomes. Winnebago has also been struggling to recruit and retain employees at its main plant in Forest City. Investors will be looking to see if the company is able to contain its expenses, mainly for legal and equipment maintenance, as it pursues new strategic initiatives.
Creditbureau TransUnion will make its trading debut on the New York Stock Exchange. The company, whose competitors include Equifax and Experian, sells credit reports to help lenders assess the credit worthiness of borrowers. TransUnion filed for an IPO in 2011 but withdrew the offering in 2012 after it was sold to Advent International and Goldman Sachs by private equity firm Madison Dearborn Partners and the Pritzker family. Meanwhile, Wayne Farms, the sixth-largest poultry producer in the country, will also debut on the Nasdaq. Wayne Farms’ clients include Nestle SA, Costco Wholesale Corp and Chick-fil-A, a fast food chain known for its chicken sandwiches. The company is the subsidiary of Continental Grain Co, among the largest privately held U.S. corporations.
General Motors Co’s Chief Accounting Officer Tom Timko will host a “Behind the Charts” conference call for analysts and investors to talk about the No. 1 U.S. automaker’s financial reporting. (1000/1400)
Western Canada-focused cable and media company Shaw Communications Inc’s third-quarter results is expected to show the company bounced back from a poor report last quarter, although longer-term headwinds remain. Shaw could be seen as a useful indicator of the broader economy in oil-producing Alberta, which is suffering from a sharp fall in the price of crude.
Bank of Canada Deputy Governor Lawrence Schembri speaks to the Windsor-Essex Regional Chamber of Commerce on cross-border financial integration. Schembri’s speech is the last scheduled appearance by a Bank of Canada official before the central bank’s interest rate decision in July and investors will be watching for any insight into the bank’s view of monetary policy or how the economy is adapting to lower oil prices. (1210/1610)
Brazil’s national monetary council could decide to lower its 2017 inflation target, in what could be its first change to the goal in 11 years, to show the government’s commitment to curb a surge in prices. The council, which includes the finance and planning ministers and the central bank chief, could reduce the mid-point of the target of 4.5 percent or narrow the tolerance range of 2 percentage points. The council is also expected to raise, for the third time, the long-term interest rates used by the state-run develpment bank BNDES to finance projects. Also, a report from the country’s central bank is expected to show unemployment rose 6.60 percent in May from 6.40 percent in April. (0830/1230) Separately, Argentina’s Economy Ministry issues May data for industrial production, which is likely to have declined 1.0 percent, slightly better than the 1.5 percent drop in the prior month. (1500/1900)
LIVECHAT: Fixed Income Focus - Finding value in bonds with Jim Bianco With the Federal Reserve having put off a interest rate decision until economic data is more compelling, many investors are seeing lofty bond prices as becoming the new normal. How far afield should they look for yield and how big is the risk that a bubble might pop in U.S. government debt when the data becomes less ambiguous for the Fed? Famed fixed-income commentator Jim Bianco joins the Forum at 1000 ET (1400 GMT) to talk fixed income. To join the conversation, click here: bit.ly/1kTxdKD (Compiled by Nivedita Balu; Editing by Savio D'Souza)