CORRECTED-What to Watch in the Day Ahead - Tuesday, Nov. 18
(Corrects to remove Canadian elections blurb as it is scheduled for today (Nov. 17), not Nov. 18) Home Depot Inc, the world's largest home improvement chain, which was hit by a wide-ranging data breach in September, is likely to report third-quarter profit above analysts' average estimates, according to Thomson Reuters StarMine. The company said in August it expected same-store sales to grow faster in the second half of the year as customers renovate homes with big-ticket purchases such as wood and laminate flooring in a recovering U.S. housing market. Analyst expect sales to have been unaffected by the data breach, which let hackers steal about 53 million email addresses in addition to customer data for 56 million payment cards. Investors will be looking out for updates on security following the data breach, any changes to full-year forecast and how sales are shaping up in the holiday season quarter. U.S. Labor Department releases monthly gauge of producer prices, which likely fell in October, after dropping for the first time in more than a year in September. A drop in producer prices could add to worries about inflation failing to rise above the Federal Reserve's 2 percent target. The Labor Department is expected to report that its Producer Price Index for Final Demand fell 0.1 percent last month (0830/1330). Separately, the National Association of Home Builders reports November Housing Market index (1000/1500). Meanwhile, Treasury Department releases a report on Treasury international capital for September (1600/2100). Medtronic Inc, the world's largest standalone medical device maker, is expected to report higher fiscal second-quarter earnings, but investors will be more interested in any details on its planned $43 billion acquisition of Dublin-based hospital products maker Covidien Plc. Medtronic is forging ahead with the plan despite new U.S. tax rules aimed at deterring such tax-inversion deals that have forced the company to take on more debt to finance the purchase. Federal Reserve Bank of Minneapolis President Narayana Kocherlakota speaks on "Clarifying hte Objectives of Monetary Policy" before the St. Paul Rotary (1330/1830). Separately, Federal Reserve Division of Banking Supervision and Regulation Senior Adviser Thomas Sullivan testifies on international insurance regulation before the House Financial Services subcommittee on housing and insurance (1400/1900). Sears Canada Inc, the department store chain is expected to report a third-quarter loss, its tenth in 15 quarters, as it continues to struggle with declining sales amid stiff competition from U.S.-based rivals. Its parent company, struggling retailer Sears Holdings Corp, recently cut its stake in the Canadian chain to 12 percent from 51 percent. JA Solar Holdings Co Ltd, the Chinese solar panel maker is expected to post a quarterly profit versus a year-ago loss, helped by strong demand from new markets such as the Middle East, Africa and Latin America. The company's third-quarter revenue is expected to jump 48 percent. JA Solar had earlier said it plans to set up factories in North America to bypass U.S. duties on solar panels made in China. Investors will want to know how the move affects profit. Of interest is also the company's gross margin and free cash flow. Bank of Canada Deputy Governor Agathe Cote will address CFA Society Calgary, in Calgary, Alberta. She will be speaking eight days before the Bank of Canada's blackout period begins on pronouncements ahead of the Dec. 3 interest rate decision. Separately, Canada Trade Minister Ed Fast will testify at a Senate committee on a government bill to implement the free trade agreement with South Korea. PayNet releases its index on the level of borrowing by small and medium-sized businesses in Canada for the third quarter. Canadian Business Lending Index fell to 213 in the second quarter from 219 in the first three months of the year. Chile's Central Bank releases GDP growth data for the third-quarter. Chile's economy appeared to slump to a five-year low in the third quarter as consumers increasingly shied away from shops, while investment, especially in the key mining sector, showed little sign of rebounding, a Reuters poll found. Gross domestic product in the world's top copper producer probably grew 0.9 percent from a year earlier, according to the median estimate of 13 analysts and economists in the poll (0630/1130). Separately, Chile's central bank meets to set the benchmark interest rate. After cutting 200 bp over the last year to 3.0 percent, it has indicated that its easing cycle has drawn to a close for now (1600/2100). (All analysts' estimates are according to Thomson Reuters I/B/E/S) (Compiled by Sourav Bose in Bangalore)
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