January 22, 2015 / 7:39 PM / 3 years ago

What to Watch in the Day Ahead - Friday, Jan. 23

(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) U.S. conglomerate General Electric Co reports fourth-quarter earnings before the markets open. Given oil’s more severe slide since the company’s outlook meeting last month, GE will face further questions about the prospects of its oil and gas business, where it has been investing heavily in acquisitions since 2007. Fast food chain McDonald’s Corp reports fourth-quarter earnings before the markets open. Last year was one of McDonald’s worst for results. Investors and analysts will be looking for announcement on more changes in the company’s conference call. Honeywell International Inc, whose shares are near all-time highs, reports fourth-quarter earnings before the bell. Questions will likely persist about the diverse U.S. manufacturer’s exposure to the oil and gas sector with commodity prices sliding, even after Honeywell said last month that lower fuel was positive for the company. Kleenex and Huggies maker Kimberly-Clark Corp reports fourth-quarter results before the bell. Higher input costs have been eating into the company’s profit. Analysts expect the company to have benefited from lower commodity costs. Kimberly-Clark said in October it would cut 1,100-1,300 jobs as it focuses on emerging markets after the spinoff of its healthcare business. Analysts have said the company has been losing market share in its North America diaper business to larger rival Procter & Gamble Co. Investors will be looking closely at its North America personal care business, which includes Huggies and Kotex female hygiene products. A stronger dollar may have also been eating into Kimberly-Clark’s operating profit and investors will look for an update on the impact of currency on the company’s forecast for the year. Bank of New York Mellon Corp and State Street Corp, the world’s two largest custody banks, will report their fourth-quarter results before the markets open. The banks are battling rock-bottom interest rates but may have got a boost from global market volatility, which tends to increase currency trading. The National Association of Realtors is expected to report existing home sales rose to 5.06 million-unit pace in December from a 4.93 million-unit rate in November, according to analysts (1000/1500). Separately, U.S. Conference Board issues Leading Economic Index for December. Economists polled by Reuters expect the index to slip to 0.4 percent in December from 0.6 percent in November. (1000/1500) Aircraft avionics maker Rockwell Collins Inc reports fourth-quarter and full-year results before the markets open. The company recently won a key deal to supply cockpit displays and systems for Boeing’s new 777X aircraft, giving the Cedar Rapids, Iowa-based supplier positions on Boeing’s 737 MAX, 787 and 777 jetliners. Shares of the online data storage provider Box Inc are expected to start trading on the NYSE. The offering is one of the most-awaited technology IPOs this year after Chinese e-commerce giant Alibaba Group Holding Ltd’s blockbuster debut in September. Box competes mainly with privately held Dropbox and claims to have about 32 million users. Box expects its IPO to be priced at $11-$13 per share, valuing the company at up to $1.55 billion. The offering could raise up to $162.5 million. Box’s shareholders include venture capital firms Draper Fisher Jurvetson, U.S. Venture Partners and hedge fund Coatue Management. The rate of inflation in Canada is expected to have cooled on an annualized basis in December mainly due to the recent drop in oil prices. Still, core inflation, which strips out volatile items and is closely watched by the Bank of Canada, is expected to have edged above the central bank’s target of 2 percent (0830/1330). Separately, Canada retail sales are expected to have slipped in November, easing off the previous month’s record high. (0830/1330)

Brazil’s statistics agency IBGE releases the inflation rate for the month to mid-January, which is expected to have risen above the official target ceiling of 6.5 percent due to recent increases in electricity tariffs and bus fares. (0600/1100) Argentina releases November economic data, which according to analysts is expected to remain the same as the prior month. However, industrial production in December is expected to have contracted by 1.2 percent after shrinking by 2.1 percent in November (1400/1900). Separately, the Central Reserve Bank of Peru publishes a quarterly report with its updated views on key economic indicators, including gross domestic product growth, inflation and trade balance. (Compiled by Astha Rawat in Bengaluru; Editing by Kirti Pandey)

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