What to Watch in the Week Ahead and on Monday, April 6
(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) Week Ahead Minutes from the Fed's March 17-18 policy meeting are due on Wednesday and will be parsed for detail on whether markets are right in betting on a September move on interest rates. The U.S. Commerce Department on Thursday issues February number for wholesale inventories, which is expected to have increased 0.2 percent. The Treasury Department releases data for Federal Budget on Friday. Aluminum maker Alcoa Inc kicks off U.S. corporate earnings season on Wednesday after markets close. The company, which will report first-quarter results, has been shifting away from its more traditional high-cost aluminum smelting business and into more value-added products in the automotive and aerospace industries. After a flurry of recent acquisitions and an announcement that it was reviewing 14 percent of its smelting capacity (followed by the curtailment of its smelting capacity in Brazil announced on March 30), analyst will be watching to see what additional commentary Alcoa will provide on its ongoing transformation and the possibility of further acquisitions. Constellation Brands Inc, known for brands such as Corona beer, Robert Mondavi wine and Svedka vodka, is expected to report fourth-quarter profit and sales above analysts' average estimates, according to Thomson Reuters StarMine, largely helped by sales of higher-priced beer. The company had said in its third-quarter report that it was on track to meet its full-year goals and expected its wine brands such as Ravenswood to outperform the broader U.S. wine category. Investors will be looking for forecasts for fiscal 2016 when the company reports on Thursday. Discount retailer Family Dollar Stores Inc, which has agreed to be acquired by smaller rival Dollar Tree, is likely to report a profit for the second quarter above analysts' average estimate. The No. 2 U.S. discount retailer has estimated a 4.1 percent rise in net sales in the two months ended Jan. 31. Investors will be looking out on Wednesday for updates on the acquisition and Federal Trade Commission's decision on the number of stores that Dollar Tree needs to divest to win regulatory approval for the deal. Federal Reserve Bank of Minneapolis President Narayana Kocherlakota speaks before a breakfast meeting of the Bismarck-Mandan Chamber of Commerce on Tuesday and before a morning session of the Minnesota Credit Union Network Annual Meeting and Convention on Friday. Federal Reserve Bank of Richmond President Jeffrey Lacker on Friday speaks on the economic outlook before an event co-sponsored by the Global Interdependence Center and the Financial Planning Association of the Suncoast. The Federal Reserve Bank of Kansas City issues Labor Market Conditions Indicator (LCMI) for March on Wednesday. The LCMI are two monthly measures of labor market conditions based on 24 labor market variables. One indicator measures the level of activity in labor markets and the other indicator measures momentum in labor markets. Statistics agency IBGE releases Brazil's benchmark IPCA consumer price index for March on Wednesday. The monthly inflation rate probably remained above 1 percent in March even as the economy slips closer to recession, keeping the central bank under pressure to continue raising interest rates. Monday, April 6 Financial data firm Markit releases final reading of its composite and services Purchasing Managers Index (PMI) for March. The preliminary, or "flash," reading of PMI for the service sector rose to 58.6 in March from a final reading of 57.1 in February. Markit's seasonally adjusted flash U.S. Composite PMI index rose to 58.5 in March, from 57.2 in February. (0945/1345) Federal Reserve Bank of New York President William Dudley speaks on the national and regional economy before a group of local business and community leaders. (0830/1230) The U.S. government's Health and Human Services Agency's Center for Medicare and Medicaid Services will announce its final guidelines for insurers on how it will calculate reimbursements for the Medicare Advantage plans that they provide. The proposed figures, announced in February, were seen as creating a positive climate for insurers but investors are watching closely to be sure that the government has not made major changes to the final version as it sometimes does. Humana Inc, UnitedHealthgroup Inc and Aetna Inc are among the biggest publicly traded Medicare Advantage providers. Bank of Canada releases its Business Outlook Survey and Senior Loan Officer Survey. The quarterly business outlook survey summarizes interviews with management at 100 companies. (North American markets are closed on Friday, April 3, in observance of Good Friday) (Compiled by Sourav Bose in Bengaluru)
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