February 10, 2015 / 7:39 PM / 3 years ago

What to Watch in the Day Ahead - Wednesday, Feb. 11

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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PepsiCo Inc is scheduled to release its fourth-quarter results. The company has reported
better-than-expected earnings for 11 straight quarters. Some industry watchers think that's due
to pressure from Nelson Peltz's Trian Fund Management, which has advocated a split of the
Network equipment maker Cisco Systems Inc is expected to report second-quarter revenue and
profit above analysts' estimates, according to Thomson Reuters StarMine data. While the company
continues to face challenges from weak spending by telecom service providers such as Verizon and
AT&T, it is set to benefit from strong growth in its data center and security businesses. The
company, which is expanding in India, announced plans to invest $1.7 billion in the country.
Investor will be looking for strong growth from switching segment.
Metlife Inc, the biggest U.S. life insurer, is currently challenging the Financial Stability
Oversight Council's decision in a federal court to overturn its "systemically important" tag.
The company, which reports fourth-quarter results, mainly invests in bonds and has been hurt by
lower yield from these securities due to historically low interest rates. However, a recovering
job market is helping the company's group insurance business.
Media company Time Warner Inc is likely to report fourth-quarter profit below analysts'
estimates, according to Thomson Reuters StarMine data. The company had been engaged in a
contract dispute with Dish Network Corp after Dish blacked out several of Turner's networks
channels, including CNN and the Cartoon Network, affecting about 14 million Turner subscribers.
However, the recently announced HBO standalone streaming is expected to drive revenues up for
the company in 2015 and 2016.
Mondelez International Inc, the maker of Cadbury chocolates and Oreo cookies, will report
fourth-quarter results before the bell. The snacks maker has faced sluggish markets in some of
its key categories. The company, which raised its full-year 2014 profit forecast in November,
has reported a string of disappointing quarterly results since it split from Kraft Foods Group
in 2012.
Tesla Motors Inc will report its fourth-quarter results and investors will be looking for an
update on the company's battery plant construction, color on weak sales in China that it
previously outlined, and details about the planned summer launch of the Model X SUV. The company
also will update sales of its flagship Model S sedan. Chief Executive Elon Musk may also provide
an update on the 2017 rollout of the lower-priced, higher-volume Model 3 car.
Thomson Reuters Corp reports its fourth-quarter results and investors will be watching to see if
the information and news company can keep up its streak of positive sales for its financial
products. The company will also provide an outlook for the year.
Treasury Department issues a monthly budget report. Analysts forecast a $10 billion deficit for
January. (1400/1900) Separately, the Mortgage Bankers Association releases its seasonally
adjusted index of mortgage application activity. (0700/1200)
Federal Reserve Bank of Dallas President Richard Fisher speaks on "Monetary Policy and a
Reflection on (Almost) 10 Years at the Fed" before the Economic Club of New York. (0800/1300)
Top chip gear-maker Applied Materials Inc is expected to report first-quarter results slightly
above analysts' estimate, according to Thomson Reuters StarMine data. The company said last
quarter that it expected strong demand for consumer gadgets, such as smartphones with improved
battery life, to drive investments by chipmakers in equipment sold by the company. Investors
will be looking for details on approval regarding Applied Materials' agreement to buy rival
Tokyo Electron Ltd.
Mosaic Co's fourth-quarter profit is expected to rise, thanks to stronger phosphate sales and
prices. The company is also scheduled to forecast first-quarter phosphate and potash sales
The Netherlands' largest bank ING Groep reports fourth-quarter results. After spinning off its
insurance arm, selling U.S. operations and repaying Dutch state aid, ING appears well
capitalized and may boost its dividend or disclose plans to expand within Europe.
Nvidia Corp posts its first-quarter results as the chipmaker adapts its PC graphics technology
to be used for navigation and entertainment systems in high-end cars.
Whole Foods Market Inc announces first-quarter results after the bell. The company is enjoying
strong demand in the natural and organic foods category it pioneered. But competition is forcing
it to cut prices to compete with rivals ranging from specialty grocers such as Sprouts and the
Fresh Market to mass-market operators like Kroger and Wal-Mart.
FireEye Inc is expected to report fourth-quarter earnings above analysts' expectations,
according to Thomson Reuters StarMine data, as governments and businesses ramp up spending to
protect their networks from highly sophisticated database breaches and hacks. Investors will be
keeping an eye on forecast as customers shift to subscription-based products, away from
on-premise equipment that brought in revenue upfront.
Private equity firm Carlyle Group LP is expected to report a decline in fourth-quarter earnings,
as it is expected to generate less cash from assets sales than it did a year earlier.
Toronto-based gold producer Agnico Eagle Mines Ltd is expected to report lower fourth-quarter
earnings due to weaker metal prices. The market will want to hear about the exploration
potential of its Amaruq project in Nunavut and at properties in Mexico it recently acquired
through the purchase of Cayden Resources.
Yamana Gold Inc is expected to report weaker fourth-quarter earnings on the back of lower metal
prices. Investors will want to know more about a recent arbitration result in Argentina under
which Yamana has to pay $244 million. Any progress on the planned sale of some of its Brazilian
assets will also be of interest to the market.
Digital media and entertainment company AOL Inc is expected to report fourth-quarter revenue and
profit slightly above average analyst estimates, according to Thomson Reuters StarMine data. The
company has been in the middle of a turnaround as it moves away from subscription dial-up
Genworth Financial Inc is expected to announce results of its review of long-term care insurance
active life margins along with its fourth-quarter results. The review, to determine loss and
cash flow, will show whether the company will have to raise capital for reserves. Genworth says
premium rate increases could help offset the need to strengthen reserves.
Intel Chief Executive Brian Krzanich addresses investors at a Goldman Sachs technology event in
San Francisco following a recent revenue forecast that disappointed Wall Street. Intel's shares
have been helped over the past year by a recovery in demand for personal computers but in its
quarterly result in January the company gave only a ho-hum outlook for 2015.
European Central Bank President Mario Draghi and his lieutenant Benoit Coeure attend a crunch
meeting of euro zone finance ministers, at which officials will discuss how to handle financing
for Greece.
Brazil's statistics agency IBGE releases data on monthly retail sales, which are estimated to
have dropped 0.50 percent in December. (0600/1100)

 (Compiled by Sourav Bose in Bengaluru; Editing by Savio D'Souza)
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