(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) Dow component Johnson & Johnson, the first major U.S. healthcare company to report second-quarter results, is expected to report lower sales and earnings as weak revenue from medical devices and consumer products and the strong dollar more than offset surging sales of its newer prescription medicines.
JPMorgan Chase & Co, a Dow component and the biggest U.S. bank by assets, is likely to report a drop in second-quarter profit due to lower income from mortgage banking. U.S. banks, including JPMorgan, have been under pressure to reduce costs as low interest rates have weighed on revenue much longer than expected while regulators have demanded that banks hold additional capital and hire more people to control risks and comply with rules and laws. The U.S. Commerce Department issues data for June retail sales. Economists expect retail sales, which surged 1.2 percent in May, to have risen just 0.2 percent in June. (0830/1230) The department will also issue May data for business inventories, which is expected to have increased 0.3 percent against April’s 0.4 percent. (1000/1400) Also, import and export prices both are expected to have risen at a much slower pace of 0.1 percent in June, compared with the 1.3 percent and 0.6 percent respectively in the prior month. (0830/1230) The National Federation of Independent Business releases its Small Business Optimism Index for June. (0600/1000)
Wells Fargo & Co, the most highly valued bank in the United States, reports second-quarter results. The largest U.S. mortgage lender is expected to have benefited as lower rates and a strong labor market have encouraged more first-time buyers to buy homes. Investors will look for new insights into the willingness of individuals to step up their borrowing.
Yum Brands Inc’s second-quarter profit and sales are expected to beat a generally lowered bar for estimates, according to Thomson Reuters StarMine. Yum’s China business remains in the spotlight as it fights to recover from a food scandal in its biggest market for profit. The KFC, Pizza Hut and Taco Bell chain owner has said it expects another tough quarter before a recovery in China, but this recovery could be pushed further as consumers clamp down on discretionary spending amid an economic slowdown and fears stemming from the sharp decline in the Chinese stock market over the past few weeks. Investors will be looking for commentary on the impact from recent developments in China.
No. 3 U.S. railroad CSX Corp is due to report second-quarter results after the market closes. Like most major railroads, CSX’s coal business has been hammered this year as power plants switch to burning cheaper natural gas. The strong dollar has also hurt coal exports. But the railroad has seen solid growth in other areas, including automotive and consumer goods, and Wall Street will be looking to see how this changing business mix has affected CSX’s results.
Federal Reserve Bank of Kansas City President Esther George speaks on economic conditions and monetary policy before the Federal Reserve Bank of Kansas City 2015 Agricultural Symposium at Kansas City, Missouri. (2015/0015)
Apple Inc introduces its mobile payments service into the UK, hoping to make a splash among consumers in a market familiar with swipe-and-go payments but having to contend with resistance to the service among some big banks and retailers.
The Teranet-National Bank Composite House Price Index, which measures price changes for repeat sales of single-family homes in Canada, is due to be released for June. The index showed national home prices rose 0.9 percent in May.
LIVECHAT - STRATEGY CORNER: Adam Myers, senior market strategist, Credit Agricole Adam Myers, senior market strategist at Credit Agricole, joins us at 0500 ET (0900 GMT) to discuss how best to navigate markets as the second half of the year gets underway with increasing uncertainty over Greece's future in the euro zone and concerns over Chinese stock markets leading to some impressive volatility. To join the Global Markets Forum, click here: bit.ly/1kTxdKD Brazilian May retail sales data from official statistics agency IBGE should underscore weak demand after the fastest inflation in over a decade led to three consecutive months of falling sales volumes. The data is likely to show a drop of 0.30 percent in May against the 0.40 percent decline in April. (0800/1200) Chile's central bank meets to set the interest rate, which is expected to be retained at 3.0 percent. (1700/2100) (Compiled by Nivedita Balu; Editing by Sriraj Kalluvila)