What to Watch in the Day Ahead - Wednesday, Feb 17
(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) The Federal Open Market Committee will issue the minutes from its meeting of Jan. 26-27, where the U.S. Federal Reserve kept interest rates unchanged and said it was "closely monitoring" global economic and financial developments. (1400/1900) Meanwhile, Federal Reserve Bank of St. Louis President James Bullard will give a presentation on the U.S. economy and monetary policy before the Fed Forecast Dinner hosted by the CFA Society of St. Louis. (1930/0030) The U.S. Labor Department is expected to report that its producer price index fell 0.2 percent in January, reflecting lower oil prices and a strong dollar, after a similar drop in December, according to a Reuters survey of economists. (0830/1330) Also, the Commerce Department will likely report that housing starts increased to a 1.17 million-unit rate in January from 1.15 million units in December. (0830/1330) A report from the Federal Reserve is expected to show industrial production increased 0.4 percent in January, the first increase in four months, lifted by a rebound in manufacturing and utilities output. Industrial output fell 0.4 percent in December. (0915/1415) Marriott International Inc, the U.S.-based hotel chain, is expected to post a rise in both its fourth-quarter profit and revenue, boosted by higher occupancy and room rate. Investors would be looking for comments on how travel demand is holding up and on the company's forecast. T-Mobile U.S. Inc, the No. 3 U.S. wireless carrier, is expected to report fourth-quarter revenue slightly above estimates, according to Thomson Reuters StarMine. Once confronted with looming subscriber losses, T-Mobile has since revamped its pricing plans, launched aggressive marketing campaigns to turn its business around and entice customers away from bigger rivals Verizon and AT&T. T-Mobile, led by outspoken chief executive John Legere, is expected to benefit from lower postpaid churn and postpaid net adds over the Black Friday holiday weekend, according to analysts. Chipmaker Nvidia Corp is expected to report a bigger-than-expected rise in fourth-quarter revenue, according to Thomson Reuters StarMine. The company has benefited from strong demand for its chips used in gaming, fueled by new gaming releases such as "Star Wars: Battle Front", "Need for Speed" and "Call of Duty: Black Ops III". However, analysts expect a weak first-quarter forecast. Rival Advanced Micro Devices last month forecast first-quarter revenue below analysts' estimates due to lower demand for its graphic chips used in consoles and an economic slowdown in China. Intel Corp has also warned of lower demand in China. Oil and gas producer Noble Energy Inc is expected to report a loss for the fourth quarter, compared with a year-ago profit, hurt by a steep fall in crude oil prices. Investors will be looking for the company's forecast for production and cash flows. Noble, considered one of the most resilient U.S. shale producers, has slashed its quarterly dividend and 2016 capital spending by nearly half to shore up its finances. Also, Marathon Oil Corp is expected to report a fourth-quarter loss as the U.S. shale exploration and production company sees results hit by the collapse in crude prices. CF Industries Holdings Inc is scheduled to announce its fourth-quarter results. The fertilizer producer's quarterly profit is expected to tumble, hurt by weak nitrogen fertilizer prices. Of interest to investors will be an update on the company's expansion of nitrogen plants in Louisiana and Iowa, and an update of its plans to acquire plants from OCI NV. Web-hosting company GoDaddy Inc is expected to report fourth-quarter revenue slightly above analysts' average estimate, according to Thomson Reuters StarMine. The company said in November that it expected to be profitable in the quarter. GoDaddy has been benefiting from strong growth in its international markets, where it been investing heavily. The company plans to be in the greater Asia region, including China, Indonesia and Vietnam, by the end of 2016. GPS-based gadgets maker Garmin Ltd is expected to report fourth-quarter revenue below analysts' average estimate, according to Thomson Reuters StarMine. Garmin's fitness products have been hit by competition from Fitbit Inc and various other smartwatches. A weak business jet environment has also hit its aviation business. Investors will look for the impact of a strong dollar as the company gets about half its revenue from outside the United States. Solar-panel maker SunPower Corp is expected to report a higher fourth-quarter profit, helped by stronger demand from utilities and lower costs. The focus this quarter will be the company's growth forecast, after an unexpected extension beyond 2016 of investment tax credits for solar systems. Boeing Chief Executive Dennis Muilenburg is scheduled to give a presentation and answer questions at the Barclays Industrial Select Conference in Miami Beach, Florida. Debt-laden Canadian plane maker Bombardier Inc is expected to report a fall in fourth-quarter profit, hurt by lower sales. Investors will be looking to see if the company has managed to attract further investment for its CSeries program, which has already cost it billions of dollars. Quebec made a $1.3 billion investment last year, and the province is considering additional investments, according to media reports. The focus this quarter will be on new orders for Bombardier's new 100-150 seat CSeries jets as well as business jets. Air Canada, Canada's biggest airline, is expected to report a rise in fourth-quarter profit, helped by lower fuel costs. Airline companies have been benefiting from a 70 percent fall in oil prices since mid-2014. But the fall in oil price is also hurting demand in Canada, where a number of people work in oil and related industries. Competitor WestJet reported a fall in profit, hurt by lower demand from Alberta, where it is scaling back operations. Investors will look to see if AirCanada will take similar measures. Barrick Gold Corp, the world's biggest bullion producer, is expected to post a smaller quarterly profit, hurt by lower gold prices in the fourth quarter. The company said last month it would have to take an impairment charge of up to $3 billion for 2015. Investors will focus on the company's cost-cutting measures. Shopify Inc, a Canadian company that helps customers set up online stores, will report fourth-quarter results for the first time. The company is expected to report a wider loss due to high start-up costs. The company went public in May last year and has been expanding its platform to Facebook and Twitter. Shopify has also tied-up with Uber to ensure same-day delivery to its customers. Investors will want to know how the company will cut costs and when it will turn profitable. Statistics Canada will report net worth of foreign investments in Canadian securities and foreign securities bought by Canadian investors in January. (0830/1330) Brazil's central bank will release the data for forex outflow from the country in the calendar month through Feb. 12. Colombia's retail sales are expected to have risen 0.8 percent in December compared with the same month a year earlier. Their industrial production, meanwhile, is likely to have increased 4.4 percent in the same period. LIVECHAT with celebrated investor Richard Bernstein CEO and CIO of eponymous Richard Bernstein Advisors, Richard was a much-honored chief investment strategist at Merrill Lynch and champions macroeconomic-led securities selection, which includes the newly minted Asset Allocation 2.0 designed for increasingly volatile global markets. Richard will take questions in the forum on the 2.0 program used with RBA's clients, investment trends and central banks policies. (1000/1500) To join the Global Markets Forum, click here: bit.ly/1kTxdKD (Compiled By Nayyar Rasheed in Bengaluru; Editing by Maju Samuel)
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