August 4, 2014 / 6:33 PM / 4 years ago

What to Watch in The Day Ahead; Tuesday, August 5

(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) Disney is expected to report third-quarter results after market close and is likely to beat average analyst estimates, according to StarMine. The media company’s results may get a boost from its movie, “Maleficent”, a special-effects laden take on “Sleeping Beauty’s” wicked fairy godmother and which starred Angelina Jolie as the black-robed villain. Separately, Time, the world’s largest magazine company, is scheduled to report for the first time as a stand-alone company. Markit is scheduled to release its Composite Final PMI for July. (0945/1345) Meanwhile, the Institute for Supply Management is scheduled to release its non-manufacturing PMI for July. (1000/1400) Redbook Research is scheduled to release its weekly Johnson Redbook Index which decreased 0.6 percent previously. (0855/1255) A separate report from the Bureau of the Census is expected to show factory orders rebounded in June after a drop in May. Also Investor’s Business Daily is likely to release its Economic Optimism Index for August. (1000/1400) Archer Daniels Midland, one of the world’s largest grain traders and a major food processor, is expected to report second-quarter results before market opens. Toyota is scheduled to report its first-quarter results. The company previously announced an EPS of $2.30. Intercontinental Hotels is expected to report its earnings for the first-half of the year. Oil and natural gas producer EOG Resources is expected to post quarterly results and is likely to show a rapid rise in U.S. shale production. Separately, Continental Resources, the second-largest oil producer in North Dakota, is expected to post a jump in quarterly profit, helped by booming production. Separately, state-controlled Columbian oil company Ecopetrol is expected to schedule an earnings conference call with analysts. The company’s profits are expected to be limited by a reduction in average oil output due to guerrilla attacks. Generic drugmaker Actavis is likely to report its second-quarter results before the bell. Analysts’ expect an EPS of $3.37. Separately, CVS Caremark, the pharmacy health care provider, is expected to report its second-quarter results which analysts’ say have increased. Emerson Electric is expected to round out the second-quarter reporting season for diversified U.S. manufacturers, whose reports have been tepidly received by Wall Street. The maker of industrial controls, power supplies and home-storage equipment said last month that its most three-month order book grew 5 percent, with a 2 percentage point benefit from currency translation, which slowed from recent trends owing to uneven project timing. Regeneron Pharmaceuticals is expected to report sharply higher second-quarter earnings, fueled by growth in its blockbuster Eylea treatment for macular degeneration. Investors will want hints on how Eylea’s sales will be helped by the drug’s expanded approval to treat diabetic macular edema, and will be eager for updates on the company’s potential breakthrough treatment for cholesterol. Western Refining is likely to report a higher second-quarter profit, as it continues to benefit from easy access to cheaper crudes in some regions. Western Refining, which operates refineries in El Paso, Texas and Gallup in New Mexico, has seen margins grow as it sells refined products at prices linked to the more expensive global benchmark Brent. Investors will be looking for comments on U.S. crude exports. The U.S. Commerce Department allowed two energy companies to export minimally processed condensate last month. Video game maker Activision Blizzard is likely to announce second-quarter results following a quarter with a seasonally light release window. Analysts expect the company to deliver in-line results, driven by sales of its hit franchises such as “Skylanders,” “Call of Duty” and “World of Warcraft.” Investors will keep an eye out for any updates on Activision’s $500 million bet on its upcoming “Destiny” game, which analysts expect could be its next new game. Smaller rival Take-Two Interactive is also expected to announce first-quarter earnings. The company, known for its “Grand Theft Auto” game, has announced a weaker-than-expected first-quarter forecast as most of its 2014 releases are scheduled for the holiday shopping period. FireEye, a cyber-security company, is expected to report second-quarter earnings slightly above analysts’ expectations, according to StarMine data. There were concerns of weak product revenue in the first quarter, but growth is now expected to re-accelerate in the second quarter, following a number of recent product launches. Investors will, however, look out for higher research and development spending that led the company to forecast a bigger loss this year. First Solar’s second-quarter profit is expected to fall as it plans to hold on to solar plants rather than sell them. The company is now trying to make a push into the residential solar market to catch up with rivals such as SunPower and SolarCity. Investors will look for First Solar’s reaction to preliminary anti-dumping tariffs imposed by the United States on imports of solar cells and modules from China and Taiwan. Motorola Solutions is likely to miss analysts’ average estimates, according to StarMine. The company, which makes walkie-talkies, rugged mobile computers and tablets, has seen lower orders from the U.S. government due to the ongoing federal budget cuts. Upscale handbag and luggage retailer Coach is likely to report fourth-quarter profit above the average analyst estimate, according to StarMine. The company said in June it would close about 70 stores in North America as it struggles against fast-growing rivals such as Michael Kors in its biggest market. Sales in international markets such as Japan is likely to boost profit in the quarter while the brand remains weak in North America. Zillow, a real estate website operator, is expected to report second-quarter earnings above analysts’ expectations, according to StarMine data. The company last week agreed to buy smaller rival Trulia for $3.5 billion, in an effort to cut heavy marketing costs that have seen both run up heavy losses. Zillow forecast higher-than-expected revenue for the quarter, as more people signed up to rent, sell or mortgage properties. Office Depot is expected to report narrower second-quarter loss as it consolidates operations with OfficeMax and lowers costs. The company, which is struggling with increased competition from e-retailers, mass merchants and drugstores, is also expected to improve margins. Investors will want to know how the company’s integration with OfficeMax is progressing and they will also keep an eye out for additional cost-cutting measures. Och-Ziff Capital Management is expected to report earnings that analysts say will be stronger than last year as the hedge fund firm continues to sign up new pension fund clients in its conservatively managed portfolios. Mexican July consumer confidence data due will show if sentiment has recovered further from an eight-month high. (0900/1300) Brazil’s HSBC Services PMI for July is scheduled to be released. (0900/1300) Separately, Chile is likely to release its monthly IMACEC activity index, a proxy for GDP. (0830/1230) (All analysts’ estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Nandi Kaul in Bangalore; Editing by Sriraj Kalluvila)

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