July 21, 2015 / 6:39 PM / in 3 years

What to Watch in the Day Ahead - Wednesday, July 22

(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 The Coca Cola Co, the world’s largest beverage maker is likely to report second-quarter revenue above analysts’ average estimate, according to Thomson Reuters StarMine. Coke has called 2015 a transition year as it attempts to figure out how to increase soda sales.

Boeing Co posts second-quarter results. The company on Friday said it will take a $536 million after-tax charge related to its aerial refueling tanker for the U.S. Air Force. The commercial aircraft business will still show strong underlying growth, after delivering 381 commercial jets in the first half, more than half of its annual target of 750-755 jets. The company also announced that EVA Airways plans to buy 24 to 26 Boeing 787 jets for around $65 billion at listed price, with delivery slated for 2018 to 2019.

Chipmaker Qualcomm Inc is expected to announce that it plans to conduct a strategic review that may include a breakup of the company, the Wall Street Journal reported on Monday, citing sources. Qualcomm is also expected to cut the jobs of several thousand employees. It is expected to report third-quarter revenue marginally below estimates, according to Thomson Reuters StarMine, hurt by the loss of a key customer and delays in product launches by some Smartphone makers would hurt sales of its flagship Snapdragon chips. Qualcomm’s dominance in LTE chips is also eroding, according to a recent study, as Smartphone manufacturers increasingly look to make their own chips or opt for chips from smaller Asian competitors.

American Express Co, the world’s biggest credit card issuer is expected to report second-quarter results in-line with analysts’ estimates, according to Thomson Reuters StarMine. Investors will keep an eye on AmEx’s plans to prop up revenue, following the loss of its exclusive tie-ups with Costco and JetBlue. AmEx’s CEO had indicated that the company might cut jobs to improve margins and achieve previously set moderate-to-long-term targets, as it faces cut throat competition from Visa and Mastercard.

The National Association of Realtors releases U.S. existing home sales data. Home sales, which reached its 5-1/2- year high in May are expected to have risen 1.2 percent at an annual rate of 5.40 million units in June. (1000/1400) Separately, the Mortgage Bankers Association issues its seasonally adjusted index of mortgage application activity. (0700/1100)

Abbott Laboratories Inc will be reporting stronger second-quarter profit as sales at the company’s three biggest business units - nutritional products, diagnostic products and pharmaceutical products - increased. Abbott is expected to reap the benefits of its nearly $3.4 billion acquisition of Chile’s CFR Pharmaceuticals and its generic drugs, which expanded the drugmaker’s reach in Latin America and emerging markets, areas that Abbott considers to be key to its growth. Analysts will be looking to see if the company, which gets nearly 70 percent of its revenue from outside United States, is able to keep the 30-percent-plus growth rate it has seen in branded generic sales.

Chipmaker Texas Instruments Inc is expected to report second-quarter profit above average analysts’ estimate, according to Thomson Reuters StarMine. Texas Instruments has been winding down its unprofitable wireless business and focusing on its analog and higher margin embedded chips business. However, the company has also been impacted by slowing demand for PCs. Investors will be looking for impact of weak PC market on the results and the third-quarter forecast.

Data storage products maker EMC Corp is expected to report second-quarter profit below average analysts’ estimate, according to Thomson Reuters StarMine. The company, which slashed its full-year revenue and profit forecasts in April, is struggling with slowing sales growth in its main data storage products business. The company on July 9 completed the acquisition of privately held Virtustream which it had agreed to buy for about $1.2 billion to expand its cloud offering. Investors will be looking for third quarter forecast. Separately, SanDisk Corp is expected to report a second-quarter revenue slightly below market expectations, according to Thomson Reuters StarMine. The company has been struggling to meet demand for its memory chips and solid-state drives. It has also been grappling with lean inventory and lower pricing, forcing it to slash revenue forecasts. Investors will be looking for management commentary on the outlook for the remainder of 2015.

Thermo Fisher Scientific Inc, the world’s largest maker of scientific instruments is expected to report flat second-quarter profit, according to Thomson Reuters StarMine. The company, which lowered its 2015 revenue outlook in the first quarter, is likely to be another victim of the continuing strength of the U.S. dollar.

Highly anticipated results from studies of experimental Alzheimer’s treatments from U.S. drugmakers Eli Lilly and Co, and Biogen Inc will be unveiled by researchers and more clearly show whether they have the potential to slow down progression of the mind-wasting disease. Lilly’s solanezumab, now in Phase III studies, and Biogen’s earlier-stage aducanumab both block the beta amyloid protein which creates toxic brain plaques and have previously shown strong hints of effectiveness. Further proof could send company shares higher and bolster confidence that treatments for the underlying causes of Alzheimer’s are on the horizon. Shares could retreat, however, if findings fall short.

Advertising agency Interpublic Group of Companies Inc is expected to report second-quarter profit above average analysts’ estimate, according to Thomson Reuters StarMine. The company, whose clients include General Motors and Johnson & Johnson, has been improving its operating margins helped by improvements in creative agencies. Interpublic, whose agencies include McCann and Fitzgerald, is expected to be impacted by a high number of account reviews occurring currently as advertisers seek to save costs. Investors will be looking for improved margins and impact of account reviews on the results.

AutoNation Inc posts second-quarter results. The largest U.S. auto dealer group is expected to report quarterly profit above analysts’ estimates, according to Thomson Reuters StarMine. Chief Executive Mike Jackson has said the company is experiencing high demand on the back of low oil prices. Investors will be interested to see if the company’s soon-to-be launched online service “AutoNation Express” will propel vehicle sales.

F5 Networks Inc is scheduled to post third-quarter results. The network equipment maker announced the retirement of Chief Executive John McAdam last quarter, which comes at a time when its U.S. business has lagged the robust enterprise end markets. Investors will look for signs of a recovery in the business. Last quarter, the company also warned of continued foreign currency impact in the third quarter. The company, whose customers range from Facebook to the U.S. government, has also been expanding its suite of security products to better equip its gear to protect applications and networks against malware, phishing and cyber-threats.

Mexican cement giant Cemex, which made a slew of poorly timed purchases before the 2009 financial crisis, and is slowly working its way back to health, is set to report its second-quarter results. The company has been focusing on reducing debt to regain an investment-grade rating, announcing plans for an asset sale at the end of the first-quarter. Investors will look for any more information on this, and on U.S., Mexican sales.

World’s second-biggest gold producer Newmont Mining Corp is expected to report higher second-quarter earnings on the back of lower costs, helped by weaker oil prices and local currencies, and despite a weaker gold price in the quarter. Newmont is likely to update the market on its newest gold project, Merian, in Suriname and may address the power load-shedding problems it has faced in Ghana.

Pet product maker Blue Buffalo Pet Products Inc is scheduled to start trading on the Nasdaq. The company’s products include the Blue Basics brand for pets with food sensitivities; the Wilderness brand that includes more meat and the grain-free Freedom brand. Blue Buffalo, which has 6 percent share of the $26 billion U.S. pet food market, also sells cat litter, pet treats and stews. The company reported a 28 percent jump in revenue to $917.8 million for 2014 and a net income rose 30 percent to about $102 million.

Brazil’s statistics agency IBGE issues its IPCA-15 consumer price index for the month to mid-July. It is expected to increase 0.59 percent, down from 0.99 percent in the month to mid-June. (0800/1200) Also, Brazil is likely to post a current account deficit of $2.30 billion in June, a bit better comparing to the $3.366 billion gap in May. (0930/1330) In another report, data will see how Mexico’s consumer spending has fared in May, after a monthly decline of 0.3 percent in the previous month. (0900/1300) Separately, Argentine government releases June data for trade balance. (1500/1900)

LIVECHAT - MACRO FOCUS: Kit Juckes, global macro strategist, Societe Generale Kit Juckes, global macro strategist at Societe Generale, will be with us to look at what slowing Chinese growth means for the rest of the Asian economies, as well as how well the United States economy will deal with the first rate rise in almost a decade, and of course with a look at the euro zone, where Greece is facing a situation of "reform-or-bust". (0500/0900) To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Nivedita Balu; Editing by Joyjeet Das)

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