(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 Institute of Supply Management is expected to report that U.S. manufacturing activity strengthened last month. The ISM’s index is seen rising to 55.8 in June from 55.4 in May. (1000/1400) Separately, Commerce Department data on construction spending will likely show a 0.5 percent increase in May. (1000/1400)
U.S. auto industry sales are expected to slip almost 3 percent in June, but maintain the strong pace seen since the bad weather eased. Part of the decline is due to fewer selling days in June this year compared with last year, when the month had five weekends. Despite the decline, the annual sales pace in June is expected to finish at 16.4 million vehicles. That would mark the fourth consecutive month above the 16-million level and tie for the second strongest month of the year. However, General Motors Co and Ford Motor Co are expected to report larger declines and investors and analysts will be watching to see how they are handling incentives. (0000/0400)
Payroll and human resources company Paychex has been ramping up its presence in the software-as-a-service technology to boost payroll revenue. Paychex, which has been highly acquisitive, bought cloud-based time and attendance company NetTime Solutions in June. Paychex’s fourth-quarter earnings are expected to be in line with StarMine estimates, helped by higher payroll processing revenue amid steady U.S. jobs growth.
Treasury Secretary Jack Lew participates in an on-the-record conversation before the U.S.-China Business Council in Washington on the current state of the U.S.-China economic relationship and priorities for the upcoming sixth Strategic and Economic Dialogue in Beijing.
Markit’s final June Manufacturing Purchasing Managers’ Index for the euro zone is scheduled for release. The index, covering thousands of factories across the euro zone, slipped last month. (0400/0800)
A hearing is scheduled in the case of Benjamin Durant and Daryl Payton, two former employees of broker-dealer Euro Pacific Capital Inc who prosecutors say participated in a ring of information-sharing that led to illegal trading in a technology company acquired by IBM Corp in 2009. The case is before U.S. District Judge Andrew Carter at 40 Foley Square.
June’s HSBC Purchasing Managers’ Index for Brazil’s manufacturing sector, which fell to a seasonally adjusted 48.8 last month, is scheduled for release. High labor costs, poor infrastructure and a hefty tax burden still weigh heavily on Brazil’s manufacturers, whose lackluster performance has weighed on economic growth. (0900/1300)
HSBC PMI numbers from Mexico will gauge manufacturing sentiment for June, after the monthly indicator edged up in May, rising for a second month on improving new orders and employment despite a dip in output. (1030/1430)
Peru’s official inflation data for June is scheduled for release. In May, the annual inflation rate rose slightly to 3.56 percent, above the central bank’s 1-3 percent target range, for the fifth month in a row. (0100/0500) (Canada markets will remain closed on Tuesday, July 1, for Canada Day.) (Compiled by Sourav Bose in Bangalore; Editing by Savio D’Souza)