February 12, 2015 / 7:34 PM / 3 years ago

What to Watch in the Day Ahead - Friday, Feb. 13

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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JM Smucker Co, the maker of Folgers coffee, is likely to report third-quarter profit below
analysts' expectations, according to Thomson Reuters StarMine data. In November, the company
said it was a "misstep" to hike prices in June, which led to a sharp drop in sales volumes as
customers delayed purchases and shifted to cheaper private-label brands. However, Smucker
extended the price hikes to its higher-profit brands such as Folgers Gourmet Selections and
Millstone in January, raising the prices of its K-Cup packs sold in the United States by about 8
percent. This followed a 9 percent increase in K-Cup prices by competitor Kraft Foods Group Inc,
which makes Maxwell House coffee. Investors will be looking for how the latest price increase
was received by customers, and Smucker's integration plans for its $3.2 billion acquisition of
pet food maker Big Heart Pet Brands.
January import prices likely dropped for a seventh straight month, driven by falling petroleum
costs and a boom in U.S. shale gas production, which has caused an excess in foreign oil
supplies and pushed prices down. Analysts polled by Reuters forecast a 3.2 percent drop in
import prices and a 0.9 percent drop in U.S. export prices last month. (0830/1330) Separately,
the Thomson Reuters/University of Michigan's preliminary February reading on the overall index
on consumer sentiment is scheduled to be released. (1000/1500)
Advertising company Interpublic Group of Cos Inc is expected to report fourth-quarter revenue
below estimates, according to Thomson Reuters StarMine data. A slowdown in advertising spending,
alongside foreign exchange currency volatility, is expected to affect advertising companies.
Advertisers haven't been boosting their budgets but neither have they pulled back. Furthermore,
media companies such as Walt Disney Co and Viacom have indicated stabilization in advertising
spending in the United States and a return of ad spending in broadcasting. Analysts will be
keeping an eye on the company's outlook.
ArcelorMittal SA is set to post its fourth-quarter and full-year results. Steel is ticking along
nicely but the company's iron ore business is suffering from low prices. The latter prompted
Standard & Poor's this month to cut its credit rating on the firm. Investors will be looking for
the company's earnings before interest, taxes, depreciation and amortization picking up from a
relatively modest $7 billion in 2014. Results are also likely to come with a new set of steel
consumption forecasts.
Federal Reserve Bank of Dallas President Richard Fisher speaks on "Reflections on (Almost) 10
Years at the Fed" before a community luncheon. (1330/1830)
TransCanada Corp, the company behind the controversial Keystone XL pipeline and the ambitious
C$12 billion Energy East project, reports fourth-quarter results.
Toymaker Hasbro Inc's Chief Executive Brian Goldner and Chief Financial Officer Deborah Thomas
will webcast their presentations from the company's annual investor event at the Toy Fair.
Investors will be looking for details on the company's new products and plans for 2015.
The White House will host a cybersecurity summit that will bring together government officials
and CEOs from companies such as Apple Inc, MasterCard Inc and Paypal. The seven-hour event at
Stanford University will include panel discussions on topics such as information sharing and
secure payment technologies. U.S. President Barack Obama will deliver a keynote speech.
Canadian manufacturing sales are expected to have gained by 1.0 percent in December, recovering
somewhat after declining for the previous two months.
Peru's central bank decides whether to hold the benchmark interest rate at 3.25 percent after
surprising the market by cutting it by 25 basis points in January. The central bank said the
lowered rate did not necessarily mark the start of a series of reductions. However, growth
remains well below the potential rate and the central bank said it now sees inflation cooling
more rapidly and the sol currency less volatile than in previous months. (1900/0000) Separately,
Argentina is due to release January consumer inflation data. (1400/1900)

 (Compiled by Sourav Bose in Bengaluru; Editing by Kirti Pandey)
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