What to Watch in the Day Ahead - Tuesday, Aug. 18
(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) Wal-Mart Stores Inc is expected to report a fall in earnings in the second quarter, reflecting the impact of its $1 billion investment in increasing wages, and a stronger dollar. Analysts on average expect earnings per share of $1.12, down from $1.21 in the same quarter a year earlier. Wal-Mart has forecast U.S. same-store sales growth of about 1 percent for the 13 weeks ending July 31. Investors will be focused on what impact it sees from the devaluation of the yuan and the slowdown in the Chinese economy. Offprice retailer TJX Cos Inc is likely to report profit and sales above analysts' average estimates in the second quarter. TJX is expected to be helped by lower gas prices and wage growth. A hike in the number and quality of brands in its stores and merchandise that reflects popular fashion trends is also expected to drive sales. Investors will look for third-quarter forecast, commentary on industry trends and plans to expand in international markets. Home Depot Inc, the world's No. 1 home improvement chain, is likely to report second-quarter sales below analysts' average estimate. Strong housing market data over the last few months is expected to have kept overall demand for home improvement goods steady. However, record rainfall in May and June in large parts of the United States is likely to have kept a lid on sales of products in the home exterior improvement categories, such as paint and gardening supplies. U.S. housing starts likely increased in July, fueled by strong demand for rental apartments, setting a solid foundation for growth early in the third quarter. The house market recovery is gaining traction after being sluggish for much of last year, with a report showing confidence among builders in August rose to its highest level since November 2005. Economists expect housing starts to have advanced to a seasonally adjusted pace of 1.19 million units last month. Meanwhile, the permits for future home construction are forecast to have slipped to 1.232 million-unit rate in July from 1.34 million-unit rate in the previous month.(0830/1230) Chile's economy is expected to have contracted in the second quarter. The quarter-on-quarter performance is forecast to have declined 0.1 percent after a 1 percent growth in the previous quarter. Separately, Argentina releases the unemployment rate for the second quarter. LIVECHAT: FOREX Comment with Adam Button, Currency Analyst & Editor, Forex Live China's exchange rate moves gave emerging markets a jolt, prompting many to predict a wide-ranging set of competitive devaluations among Asia's export engines. Join Forex Live commentator Adam Button at (1000/1400) for a chat about FX markets and how they are positioned to weather rising U.S. rates against the backdrop of a devaluing Chinese yuan. To join the Global Markets Forum, click here: bit.ly/1kTxdKD (All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise) (Compiled by Hardik Vyas in Bengaluru; Edited by Don Sebastian)
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