What to Watch in the Day Ahead - Wednesday, Oct 14
(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) Wells Fargo & Co, the largest U.S. mortgage lender, is expected to report a slight rise in third-quarter profit, helped by a large capital loan book it bought from General Electric. The bank said in July that it expected to make lower mortgage loans in the quarter due to slower refinancing activity ahead of the Federal Reserve's expected rate hike in September. Analysts, however, say Wells Fargo should benefit from shifting some of its high liquid assets into securities during the second quarter, when it bet correctly that interest rates would be kept lower for longer. Bank of America Corp will report third-quarter results. The No. 2 U.S. bank by assets is expected to be hurt by recent market volatility and the U.S. Federal Reserve's decision to keep interest rates unchanged in September. CEO Moynihan has already said trading revenue may end up down at least 5 percent, but analysts expect a bigger fall. Investors will be keen to see what impact this could have on future earnings and also if a tight control on expenses could help the bank offset a fall in revenue. U.S. retail sales likely rose modestly in September as a cheaper gasoline weighed on receipts at service stations. But robust demand for automobiles should point to solid consumer spending growth in the third quarter. A survey of economists forecast retail sales increasing 0.2 percent last month after a similar gain in August. The so-called core retail sales, which corresponds closely with the consumer spending component of gross domestic product, were forecast rising 0.3 percent after advancing 0.4 percent in August. (0830/1230) Meanwhile, in what is expected to be its eighth straight 12-month decline, the producer price index is predicted to fall 0.7 percent in the 12 months through September. (0830/1230) Also, the Commerce Department will issue business inventory data for August. (1000/1400) The Federal Reserve will issue its so-called Beige Book. BlackRock Inc, the world's largest asset manager, will post third-quarter results before the market opens. The company's profit is expected to have declined due to market volatility. Investors will look to see whether the popularity of the firm's iShares exchange-traded funds is enough to offset weak performance elsewhere. In July, the firm reported its first quarterly outflows in nearly three years. Video streaming pioneer Netflix Inc's third-quarter results are expected to be a little below analysts' average estimate, according to Thomson Reuters StarMine data. Overseas expansion and production of original content is expected to have boost Netflix's subscriber base, but costs associated with the moves is expected to lead to a fall in profit. Last quarter, the company's net income more than halved. Recently, Netflix increased the subscription rate for new members who subscribe to its "standard" plan by $1 a month. The changes are applicable to customers in the United States, Canada and Latin America. ASML Holding NV, a key supplier to chipmakers, reports third-quarter earnings as weak global demand for PCs and tablets mean the global market for semiconductors may decline for the first time this year since 2012. Analysts will be watching for any sign that ASML has seen order pushbacks, particularly for its newest generation of lithography machines. Delta Air Lines Inc will report third-quarter results. The carrier has hinted that a months-long decline in unit revenue has started to ease as it cuts capacity to match weak demand abroad. Analysts will be watching for its fourth-quarter guidance to see if Delta expects these cuts and other measures to be enough to turn its year-over-year change in unit revenue positive. Wal-Mart Stores Inc is scheduled to unveil targets for capital expenditure, new store openings and some financial estimates for its fiscal year starting February 2016 at its 22nd annual meeting for the investors. Retail sales in Brazil probably fell for the seventh straight month in August as consumer confidence continued to drop and unemployment rose amid a steep recession. Sales volumes, excluding automobiles and building materials, likely fell a seasonally adjusted 0.55 percent in August from July. Meanwhile, Brazil's central bank is scheduled to announce weekly capital flows and foreign reserves data. Chile's central bank is expected to hold the benchmark interest rate at 3.0 percent in October. LIVECHAT - Currency Chart Corner with Reuters technical analyst Martin Miller A quick round up of what the technical charts are telling us with analyst Martin Miller at 0600 ET/1000 GMT. To join the conversation, click here bit.ly/1kTxdKD (Compiled By Nayyar Rasheed in Bengaluru; Editing by Savio D'Souza)
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