What to Watch in the Day Ahead - Wednesday, March 2
(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) Warehouse club retailer Costco Wholesale Corp is likely to report second-quarter profit and sales slightly below analysts' average estimate, according to Thomson Reuters StarMine. Falling grocery prices, a slowdown in sales in January and a strong dollar are expected to have weighed on sales and margins. The company gets about 27 percent of its revenue from outside the United States. Federal Reserve Bank of San Francisco President John Williams will speak on the economic outlook before the Bishop Ranch Forum in California. Williams, a policy centrist, expects a tightening labor market to start boosting inflation later this year, making rate hikes an imperative for coming months. (1100/1600) Also, the Federal Reserve issues its so-called Beige Book, a compendium of anecdotes on the health of the economy drawn from the central bank's sources across the nation. It will likely continue to flash mixed signals for the U.S. economy, with broadly positive momentum expected on jobs and consumer spending, set against further signs of stress in the manufacturing and energy sectors. (1400/1900) Data from payrolls processor ADP will likely show that private payrolls increased by 190,000 jobs in February after rising 205,000 in January. (0815/1315) Teen apparel retailers Abercrombie & Fitch Co and American Eagle Outfitters Inc report fourth-quarter results. While Abercrombie & Fitch is expected to report its 12th straight quarter of falling sales, American Eagle is expected to report fourth-quarter profit and sales below the average analyst estimates, according to Thomson Reuters StarMine. Retailers had been hurt by a long spell of warm weather, which has weighed on winter apparel such as coats and jackets. Teen retailers are also being forced to discount more to lure customers who are flocking to trendier shops and embracing online shopping. Canada's Torstar Corp, the owner of the Toronto Star newspaper, is expected to report a fall in quarterly profit as print advertising revenue continues to slide. The media company's digital revenue, however, is expected to rise. When the company releases its fourth-quarter results, investors will look for further cost reduction measures and comments on Star Touch, the tablet edition of the Star. Canadian Prime Minister Justin Trudeau will give a keynote speech to an innovation and sustainability summit where he will discuss his government's plans to invest in green growth. Brazil's central bank meets to decide its next monetary policy move amid growing pressure to keep interest rates on hold at 14.25 percent. The bank surprised investors at its last meeting by keeping rates steady after signaling it was ready to raise borrowing costs to tame a surge in inflation. A deepening recession is adding pressure to stay put even when inflation climbs to over 12-year highs. LIVECHAT on the US business outlook with Kim Rupert of Action Economics Kim Rupert is managing director for global fixed income at Action Economics and comes to the Forum to brief members on the significance of the latest economic data, possible Federal Reserve moves and the global outlook just ahead of the often markets-moving U.S. monthly payrolls report. (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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