What to Watch in the Day Ahead - Tuesday, Feb 23
(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) U.S. home resales likely fell in January after a record surge in December. A Reuters survey of economists forecast existing home sales declining 2.9 percent to an annual rate of 5.32 million units. (1000/1500) Despite the expected decline, January's sales pace would still be above the 2015 average, indicating that the housing market recovery remains intact. Separately, the S&P/Case-Shiller house price index likely rose 5.8 percent in December from a year ago. (0900/1400) Also, the Conference Board is expected to report that its consumer confidence index slipped to 97.0 in February because of the stock market turmoil from a reading of 98.1 in January.(1000/1500) Home Depot Inc is expected to report fourth-quarter revenue above analysts' estimates, according to Thomson Reuters StarMine data. The biggest home improvement retailer benefited from a recovery in the U.S. housing sentiment and an uptick in builders' confidence in 2015. The company typically sees a rise in sales after a harsh winter leads to increased demand for home repair. But an unseasonably warm weather is likely to prompt the company to have sold more building and outdoor products in the quarter. Stanley Fischer, Federal Reserve Vice Chair, will speak on "Developments in Monetary Policy" before the CERA Week 2016 event. (2030/0130) Also, Federal Reserve Bank of Minneapolis President Neel Kashkari is scheduled to speak before the St. Paul Regional Economic Development Partnership Winter Investor Meeting, in Minneapolis. (0900/1400) Macy's Inc forecast a 4.7 percent decline in quarterly same-store sales, hit by weak holiday sales due to unusually warm weather and a strong dollar, keeping tourist spending low. The owner of Macy's and Bloomingdale's department store chains has said it will cut more than 2,000 jobs at its stores and call centers. In its fourth-quarter report, investors will look for 2016 forecast, and how the company plans to reverse a year-long streak of falling sales. JPMorgan Chase & Co will hold an investor day where the top executives of the biggest U.S. bank by assets will flood investors with about 200 slides and five hours of presentations about the company's diverse businesses. Analysts are expected to press executives on whether the company will cut more costs than previously announced now that the profit outlook has darkened with low interest rates for longer and more costs for bad energy loans. CEO Jamie Dimon may comment on the turmoil in European banks. Solar company First Solar Inc is expected to report lower quarterly profit in its fourth-quarter report, pressured by irregular revenue from its solar project shipments. An extension of investment tax credits beyond 2016 is expected to help the company's long-term earnings outlook. Toll Brothers Inc, the largest U.S. luxury homebuilder, is expected to report a higher first-quarter revenue, helped by rising home prices. However, recent market volatility and a decline in oil prices could impact demand in the luxury segment of the housing market in regions such as Texas, which is among its biggest markets by revenue. Investors will be looking for comments on demand trends, pricing and the outlook for the spring selling season. DreamWorks Animation SKG Inc is expected to report its fourth-quarter revenue above the average analyst estimate, according to Thomson Reuters StarMine data. The Hollywood studio has been focusing on increasing revenue from licensing its original content to Netflix to tap the shift in viewing habits to digital platforms. The company, which produced only one movie in 2015, plans to make fewer movies with stronger plots as well as sequels of popular films to beat stiff competition from other studios. Bank of Montreal, Canada's fourth biggest lender, will report first-quarter results, kicking off the Canadian banks' earnings season. Investors are expected to focus on its exposure to the energy industry and parse the numbers for clarity on the impact the weak oil prices are having on its loan book. Canadian Finance Minister Bill Morneau, who has kept a low profile ahead of a budget that political sources say will be unveiled on March 21 or 22, is due to testify to the House of Commons finance committee. He will undoubtedly be pressed on the 2016/17 budget deficit, which Prime Minister Justin Trudeau says will be larger than the C$10 billion the Liberals promised during last year's successful election campaign. Mexico's Coca Cola FEMSA reports its fourth-quarter results. Investors will be looking out for updates on its Venezuela business, which has hurt the company, and also whether the company, which has been on a buying spree in recent years in an attempt to offset slowing Coke sales, makes any comment on acquisitions. Brazil's IPCA-15 consumer price index is expected to have risen 1.3 percent in the month to mid-February. In the 12 months through mid-February, consumer prices probably rose 10.71 percent. (0700/1200) The country is expected to post a current account deficit of $5.9 billion in January. In the same month, Brazil probably attracted $4.95 billion in foreign direct investment. (0830/1330) Mexican GDP data for the fourth quarter of 2015 is due. Preliminary data in January projected the economy grew 0.6 pct quarter-on-quarter, slowing from the 0.8 percent rate in the third quarter. (0900/1400) LIVECHAT - Fracking's upside with Gary Sernovitz of private-equity firm Lime Rock Author of "The Green and The Black," a new book championing fracking , Gary Sernovitz is a novelist and managing director at the energy-focused Lime Rock private equity firm and will take questions on the oil bust's financial fallout, the outlook for the beleaguered shale industry and Saudi Arabia's seemingly winning campaign to protect its market share over the long run. (1000 ET/1500 GMT) 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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