(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) Chemicals conglomerate and Dow component DuPont, locked in a proxy battle with activist investor Nelson Peltz, is expected to report a lower first-quarter profit, hurt by a fall in agriculture earnings and a stronger dollar. The company, which generates 60 percent of its sales outside the United States, warned earlier this year of a strong dollar cutting its 2015 profit by 60 cents per share. However, the focus this quarter will be on an upcoming shareholder meeting at which it will be decided if Peltz will get the four board seats he has been campaigning for. The meeting has been scheduled for May 13. Investors will also look for any update on the company’s cost-reduction target, currently pegged at $1.3 billion and expected to be achieved by 2017.
Industrial conglomerate United Technologies Corp reports first-quarter earnings before the market opens. Investors will be looking at the trends for the Dow component’s Otis elevators and Carrier climate control systems businesses, given concerns about economic growth in Europe and China, as well as the extent to which the strong dollar is weighing on the company.
Wireless carrier Verizon Communications Inc will report first-quarter earnings amidst intense competition from rivals such as Sprint Corp and T-Mobile U.S. Inc who continue to step up efforts to lure subscribers. Investors will keep an eye out for details on the Dow component’s upcoming mobile video service and capital expenditure range.
Property and casualty insurer Travelers Cos Inc’s first-quarter results are expected to be in line with analysts’ average estimate, according to Thomson Reuters StarMine data, helped by the lack of any major catastrophe losses in the quarter. Travelers, a Dow 30 component, has aggressively raised insurance prices in the past several quarters to offset low interest rates. As pricing continues to decelerate in the commercial insurance sector, investors will be keen to get a view of the company’s average renewal price rate increase, a key metric.
Yahoo Inc is expected to report flat first-quarter revenue as it struggles to rev up its online advertising business, despite two years of efforts by CEO Marissa Mayer to jump start the fading internet pioneer with product revamps and acquisitions. Analysts and investors will be looking out for any details on the tax-free sale of its Alibaba shares.
Swiss bank Credit Suisse Group AG reports earnings for the first three months of the year. CEO Brady Dougan and CFO David Mathers host a conference call later in the day.
Federal Reserve Bank of New York President William Dudley co-presides over a ceremony held by the Economic Club of New York. (1130/1530).
Baker Hughes Inc, which agreed to be bought by bigger rival Halliburton Co for $35 billion in November, is expected to report a lower first-quarter profit, hurt by weak drilling activity. The company generates about half its revenue from North America and analysts expect U.S. oil production to further decline in 2015 and 2016 as producers scale back spending amid weak oil prices. Baker Hughes had forecast 7,000 job cuts and investors will seek details about any further cost cuts. They will also seek details about the close of the Halliburton deal and the companies’ plans to address antitrust concerns.
Lockheed Martin Corp, Pentagon’s No. 1 arms supplier, reports first-quarter results. Lockheed has been focusing on increasing sales to commercial customers in the United States as well as international governments to make up for pressures from tight U.S. defense spending. Lockheed gets 17 percent of its revenue from international markets and 1 percent from U.S. commercial customers. Investors will be looking to see if Lockheed still expects U.S. military spending to meaningfully pick up this year.
Omnicom Group Inc, the No. 1 U.S. advertising company, is expected to report first-quarter results largely in-line with analysts’ average estimate, according to Thomson Reuters StarMine data. Omnicom had warned that a strong dollar would hit revenue this year. Omnicom, whose clients include Apple, McDonald’s and Adidas, gets a little less than half of its revenue from outside the United States.
Yum Brands Inc will report its first-quarter results. Yum’s China business remains in the spotlight as it fights to recover from the latest food scandal in its biggest market. Analysts say the company is suffering from “brand fatigue” in China, where competition is mounting and its image has been hurt as the food scares raise doubts over its supply chain.
Chipotle Mexican Grill Inc is slated to announce results for the first quarter. Chipotle is still having problems finding pork suppliers to replace the one it suspended for running afoul of its animal welfare rules. The company says customers have simply switched to other meats and that it isn’t losing sales - but investors will be on alert for any signs of a slowdown.
Amgen Inc is expected to report higher earnings and revenue as the world’s largest biotechnology company looks to shake off a series of previous lackluster first-quarter results with the help of cost cutting, demand for rheumatoid arthritis drug Enbrel and newer medicines. Investors will also look for details on plans for the launch of new cardiovascular and oncology drugs.
Canadian Pacific Railway reports its financial results for the first quarter. Chief Executive Hunter Harrison may discuss ongoing changes to the regulations that govern the crude by rail business. CP executives may also field questions about the impact of lower oil prices on the company’s financial results and investment plans. On average, analysts are expecting earnings of C$2.17 a share, up from C$1.44 a year earlier, on revenue of C$1.65 billion.
Chipmaker Broadcom Corp is expected to report first-quarter revenue in line with analysts’ average estimate, according to Thomson Reuters StarMine data. Analysts expect the company’s connectivity business to sequentially decline as it comes off a strong Apple-driven fourth quarter and will be looking for it to provide outlook for the quarter ending June.
Virtualization software maker VMware Inc is expected to report first-quarter revenue slightly below analysts’ average estimate, according to Thomson Reuters StarMine data, hurt by a stronger dollar. More than 48 percent of VMware’s revenue comes from outside the United States. Analysts at Wells Fargo estimate a negative impact of 3-4 percent from foreign currency on license revenue growth.
Kimberly-Clark Corp, the maker of Kleenex tissues and Huggies diapers, is expected to report better-than-expected first-quarter sales, according to Thomson Reuters StarMine data, helped by growing demand in emerging markets such as Brazil, China and South Africa. However, higher input costs and a stronger dollar could have hurt profit. The company said in February it would transfer pension obligations to two insurers to reduce risk and will take a charge in the second quarter. It had also warned of an 8-9 percent drop in 2015 sales, hurt by the dollar and weak demand for core products such as Huggies diapers. Investors will be looking for any updates on forecast.
Contract driller Nabors Industries Ltd, which is merging with C&J Energy, is expected to report a lower profit in the first quarter as drilling activity continues to be hurt by the fall in oil prices. The company has already warned of weak activity and pricing pressure in its international operations. Investors will be looking for updates on any job cuts and the company’s plans to idle rigs in an oversupplied market.
Coal miner Arch Coal Inc is expected to report a ninth straight quarterly loss hurt by weak coal prices. The company last quarter said it would suspend its dividend in an attempt to lower costs and has been hurt by weak demand for thermal coal as utilities have switched to natural gas. Decreasing demand for metallurgical or steel-making coal prices from Europe and Asia have also hurt profitability. Investors will look for comments on further cost cuts.
Canadian diversified miner Teck Resources Ltd is expected to report a lower profit in the first quarter as prices for both copper and steel-making coal remain depressed amid a fall in demand. The company in March denied media reports that it was in talks to merge with Chilean copper producer Antofagasta. Teck CEO also refuted speculations of a possible merger with HudBay Minerals or an acquisition of Zaldivar, a copper mine owned by Barrick Gold. Teck said in February it might reduce its dividend in July if the industry-wide production cuts fail to boost coal prices. Investors will be interested in any comments of a possible merger or acquisition and demand for steel-making coal.
Under Armour Inc, a sports apparel and footwear maker, is expected to report profit and sales for the first quarter that are in line with analysts’ estimates, according to Thomson Reuters StarMine data. Analysts expect Under Armour to continue its 19-quarter streak of reporting more than 20 percent growth in revenue, helped by expanded offerings in sport and outdoor clothing, strong demand for its Speedform Apollo running shoes, new launches in basketball footwear and sponsorship deals. The company is also expected to benefit from investments in its fast-growing digital platform and from the acquisitions of fitness tracking apps Endomondo and MyFitnessPal. Investors will look for an update to the full-year forecast and color on the performance of new launches in footwear.
USA Today publisher Gannett Co In is expected to report first-quarter revenue below analysts’ average estimate, according to Thomson Reuters StarMine data. Carl Icahn agreed in March to withdraw his nominations to the company’s board. The company plans to separate its slow-growing print business from its digital properties by the middle of 2015. Analysts expect sales from publishing to decline further as weak economic conditions constrain advertising spending.
Canadian Finance Minister Joe Oliver will present the annual federal budget for the fiscal year that began on April 1, the last budget before the general election scheduled for October. He has promised a balanced budget and has pledged to introduce balanced budget legislation as well. The budget data will be released shortly after 1600 ET (2000 GMT).
Statistics Canada is scheduled to release wholesale trade data for February. Analysts expect no change in the data, which had tumbled 3.1 percent in January. (0830/1230) (Compiled by Ayesha Sruti Ahmed in Bengaluru; Editing by Savio D’Souza)