What to Watch in the Day Ahead - Thursday, Nov 12
(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) Cisco Systems Inc's first-quarter revenue and profit are set to beat the average analyst estimates, according to Thomson Reuters StarMine. The network equipment maker is expected to benefit from a recovery in sales of its switches and routers. Investors will look for details on Cisco's security business, where revenue has been growing. Chip equipment maker Applied Materials Inc is set to report fourth-quarter revenue and profit in line with analysts' estimates, according to Thomson Reuters StarMine. Declining spending among chipmakers have hit equipment makers. Investors will want to know how the company plans to stem falling foundry sales and combat a slowdown at Intel Corp, the world's largest chipmaker. New U.S. applications for unemployment benefits likely fell last week, almost reversing the prior week's increase, suggesting the labor market recovery continued to gain momentum in early November. Job growth surged in October, with employers adding the most workers since December. Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 270,000 for the week ended Nov. 7, according to a survey. Claims are not far from levels last seen in the early 1970s. (0830/1330) In a separate report, the Labor Department will also be releasing the job openings data for September. Meanwhile, the U.S. budget deficit is expected to have widened to $130 billion in October. (1400/1900) A day after Anheuser-Busch InBev launched an official $100 billion-plus offer, investors will be interested in hearing about the largest-ever beer deal from the SABMiller Plc side when the brewer releases its half-year results. Investors will be specifically looking for any details around shareholder acceptance for the offer and antitrust issues. Viacom Inc, the owner of MTV, Comedy Central and Nickelodeon, is expected to report a fourth-quarter profit below the average analyst estimate, according to Thomson Reuters StarMine. The company has been hurt by lower advertising revenue from its U.S. cable TV business as viewers increasingly shift to online streaming services. Investors will await commentary around viewership changes in the United States and signs of stability in the cable TV business. Department store operator Kohl's Corp is likely to report third-quarter sales and profit below analysts' average estimates, according to Thomson Reuters StarMine. Analysts expect sales to have been slow and pushed by heavy discounts as the unseasonally warm weather in September and most of October led shoppers to delay purchases of cold weather apparel and footwear, which department stores stock up on mainly in these months. Federal Reserve Chair Janet Yellen will give welcome remarks in Washington before the "Federal Reserve Conference on Monetary Policy Implementation and Transmission in the Post-Crisis Period". (0930/1430) At the same event, Fed Vice Chair Stanley Fischer will speak on "Incorporating Financial Stability into Monetary Policy". (1800/2300) Also in Washington, Federal Reserve Bank of St. Louis President James Bullard speaks on the economy and monetary policy before the Cato Institute 33rd Annual Monetary Conference, "Rethinking Monetary Policy". (0905/1405) Federal Reserve Bank of Richmond President Jeffrey Lacker will also be speaking at the event. (0945/1445) Meanwhile, Federal Reserve Bank of Chicago President Charles Evans will be speaking on current economic conditions and monetary policy before the Communities Council Fall Leadership Forum: "Inspiring Ideas, Transforming Communities". (1015/1515) The day also sees Federal Reserve Bank of New York President William Dudley speak on "The Economic Outlook and What it Means for Monetary Policy," before the Economic Club of New York. (1210/1710) Chemicals and seed company DuPont is scheduled to hold its analyst day. The company named interim Chief Executive Edward Breen to the top job earlier this week. Breen, a turnaround expert, is expected to aggressively cut costs in an attempt to avert a second proxy war with activist investor Nelson Peltz. Breen said last month he has been discussing the struggling agriculture unit with rivals. Investors will watch out for details about plans for the unit. MSCI will begin to add overseas-listed Chinese shares to its emerging market indexes, drawing billions of dollars into stocks including Alibaba and Baidu, which could eventually lead to mainland-listed companies finding their way into global equity portfolios. This will be the first test of foreign demand for greater exposure to China since markets there calmed down after a volatile summer. Canadian natural gas producer Encana Corp is expected to report a third-quarter loss, compared with a year-earlier profit, hurt by a prolonged slump in oil and gas prices. Encana has been selling off natural gas assets to cut its net debt by $3 billion by the end of the year. Investors will be keen on knowing more about the company's divestitures and efforts to improve cash flow. New home prices in Canada are expected to have edged up 0.2 percent in September. Some experts fear that Canadian homes, particularly in the hot markets of Toronto and Vancouver, have become overpriced. This measure from Statistics Canada does not include apartments or condominiums. Retail sales in Brazil probably fell in September at the steepest pace in 12 years as a deepening recession continued to weigh on consumer confidence. Sales volumes, excluding automobiles and building materials, likely fell 7.3 percent from September 2014, according to a recent survey. Retail sales likely fell a seasonally adjusted 0.75 percent from a month earlier. Chile's central bank is expected to hold its benchmark rate steady at 3.25 percent. Meanwhile, minutes from the latest policy decision of Mexico's central bank could provide some hints of whether policymakers are tilting toward raising interest rates in December, when the U.S. Federal Reserve may lift borrowing costs. LIVECHAT - Debt Watch with Anthony Valeri, investment strategist at LPL Financial U.S. tax-free debt may be losing its sheen after four months of outperformance and faces a possibly humbling November and December, according to California-based strategist Anthony Valeri of LPL Financial. He has picks in the muni sector he still favors over the longer term and views on shifting Fed policy and rates. (1000/1500) To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled By Nayyar Rasheed in Bengaluru; Editing by Sriraj Kalluvila)
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