What to Watch in the Day Ahead - Wednesday, Aug. 12
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Network equipment maker Cisco Systems Inc is expected to post a fourth-quarter profit ahead of Wall Street estimates. The company has been transitioning toward high-end switches and routers and investing in data analytics software and cloud-management tools to offset sluggish spending by telecom customers. Cisco has made its cyber security business one of the fastest growing areas in the past two years through acquisitions. It will also be the first time CEO Chuck Robbins, who took over from John Chambers in July, will be presenting the company's earnings on a conference call. Investors will be looking out for his comments around possible growth areas and restructuring initiatives. Chinese e-commerce company Alibaba Group Holding Ltd reports its results for the quarter ended June. Investors will be looking for an update on how Alibaba's $4.6 billion investment in home appliance retailer Suning Commerce Group would boost its strength in offline and online commerce. For Alibaba, the alliance could reinforce its position against main e-commerce rival JD.com, which has traditionally enjoyed healthy sales of electronics and gadgets.
The U.S. Labor Department releases monthly Job Openings and Labor Turnover Survey for June. Economists expect the job openings to have remained at 5.3 million in June, a little down from 5.363 million a month earlier. (1000/1400) Meanwhile, the Treasury Department is likely to show a budget deficit of $132 billion in July, compared with a surplus of $51.8 billion in June. (1400/1800) Also, the Mortgage Bankers Association issues its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand. (0700/1100) Macy's Inc is likely to report a second-quarter profit below analysts' average estimate. It forecast profit to be lower than a year earlier as it was forced to mark down merchandise received late due to a strike at the West Coast ports and as foreign tourists spent less at its Macy's and Bloomingdale's department stores due to a strong dollar. Activist investor Starboard Value took a stake in the company last month and said Macy's should consider spinning off its sizable real estate portfolio. Investors will be looking for comments on talks with Starboard and how the company expects the second half of the year to pan out.
Federal Reserve Bank of New York President William Dudley speaks before the Rochester Business Alliance on the local economy and the benefits of workforce development. (0830/1230) News Corp, the owner of the Wall Street Journal, is likely to miss analysts' average estimate in the fourth quarter. Like many traditional publishers, News Corp has been countering falling ad sales in the print business by slashing costs and tapping new revenue sources. Revenue in its News and Information Services unit, which represents about 65 percent of the company's overall revenue, has been hit as more customers cancel subscriptions and move to free websites for their daily dose of news. The company has been carrying out a major reorganization at its Dow Jones news publishing unit by cutting jobs and shifting resources to digital media. The Teranet-National Bank Composite House Price Index, which measures price changes for repeat sales of single-family homes, releases for July. Canadian home prices rose to a record high in June, compared to the previous month, the sixth consecutive monthly increase. Simulator maker CAE Inc holds annual general meeting (AGM) after reporting its first-quarter results. Marc Parent, CEO of the aviation training specialist, meets the press after the AGM.
Retail sales in Brazil are forecast to have dropped for a fifth straight month in June, making it the longest slump for retailers in 14 years as the country's economy hits a sharp downturn. Sales volumes excluding automobiles and building materials are expected to have slipped a seasonally adjusted 0.4 percent in June from May. LIVECHAT - Market Matters with Salvatore Ferraro, Principal, Evidente Markets have gone jittery after the recent yuan devaluation as if Chinese stocks crashing wasn't enough to digest amid rhetoric of Fed rate hike in September. To calm the nerves and help us understand what it all entails for global markets, we'll have Salvaore Ferraro, joining us from Sydney at (0000/0400). To join the conversation click here bit.ly/1kTxdKD (Compiled by Hardik Vyas in Bengaluru; Editing by Don Sebastian)
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