October 13, 2015 / 6:33 PM / 3 years ago

What to Watch in the Day Ahead - Wednesday, Oct 14

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Wells Fargo & Co, the largest U.S. mortgage lender, is expected to report a slight rise in
third-quarter profit, helped by a large capital loan book it bought from General Electric. The
bank said in July that it expected to make lower mortgage loans in the quarter due to slower
refinancing activity ahead of the Federal Reserve's expected rate hike in September. Analysts,
however, say Wells Fargo should benefit from shifting some of its high liquid assets into
securities during the second quarter, when it bet correctly that interest rates would be kept
lower for longer.

Bank of America Corp will report third-quarter results. The No. 2 U.S. bank by assets is
expected to be hurt by recent market volatility and the U.S. Federal Reserve's decision to keep
interest rates unchanged in September. CEO Moynihan has already said trading revenue may end up
down at least 5 percent, but analysts expect a bigger fall. Investors will be keen to see what
impact this could have on future earnings and also if a tight control on expenses could help the
bank offset a fall in revenue.

U.S. retail sales likely rose modestly in September as a cheaper gasoline weighed on receipts at
service stations. But robust demand for automobiles should point to solid consumer spending
growth in the third quarter. A survey of economists forecast retail sales increasing 0.2 percent
last month after a similar gain in August. The so-called core retail sales, which corresponds
closely with the consumer spending component of gross domestic product, were forecast rising 0.3
percent after advancing 0.4 percent in August. (0830/1230) Meanwhile, in what is expected to be
its eighth straight 12-month decline, the producer price index is predicted to fall 0.7 percent
in the 12 months through September. (0830/1230) Also, the Commerce Department will issue
business inventory data for August. (1000/1400) The Federal Reserve will issue its so-called
Beige Book.

BlackRock Inc, the world's largest asset manager, will post third-quarter results before the
market opens. The company's profit is expected to have declined due to market volatility.
Investors will look to see whether the popularity of the firm's iShares exchange-traded funds is
enough to offset weak performance elsewhere. In July, the firm reported its first quarterly
outflows in nearly three years.

Video streaming pioneer Netflix Inc's third-quarter results are expected to be a little below
analysts' average estimate, according to Thomson Reuters StarMine data. Overseas expansion and
production of original content is expected to have boost Netflix's subscriber base, but costs
associated with the moves is expected to lead to a fall in profit. Last quarter, the company's
net income more than halved. Recently, Netflix increased the subscription rate for new members
who subscribe to its "standard" plan by $1 a month. The changes are applicable to customers in
the United States, Canada and Latin America.

ASML Holding NV, a key supplier to chipmakers, reports third-quarter earnings as weak global
demand for PCs and tablets mean the global market for semiconductors may decline for the first
time this year since 2012. Analysts will be watching for any sign that ASML has seen order
pushbacks, particularly for its newest generation of lithography machines.

Delta Air Lines Inc will report third-quarter results. The carrier has hinted that a months-long
decline in unit revenue has started to ease as it cuts capacity to match weak demand abroad.
Analysts will be watching for its fourth-quarter guidance to see if Delta expects these cuts and
other measures to be enough to turn its year-over-year change in unit revenue positive.

Wal-Mart Stores Inc is scheduled to unveil targets for capital expenditure, new store openings
and some financial estimates for its fiscal year starting February 2016 at its 22nd annual
meeting for the investors.

Retail sales in Brazil probably fell for the seventh straight month in August as consumer
confidence continued to drop and unemployment rose amid a steep recession. Sales volumes,
excluding automobiles and building materials, likely fell a seasonally adjusted 0.55 percent in
August from July. Meanwhile, Brazil's central bank is scheduled to announce weekly capital flows
and foreign reserves data. Chile's central bank is expected to hold the benchmark interest rate
at 3.0 percent in October.

LIVECHAT - Currency Chart Corner with Reuters technical analyst Martin Miller
A quick round up of what the technical charts are telling us with analyst Martin Miller at 0600
ET/1000 GMT. To join the conversation, click here bit.ly/1kTxdKD

 (Compiled By Nayyar Rasheed in Bengaluru; Editing by Savio D'Souza)
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