What to Watch in the Day Ahead; Thursday, June 26
(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. consumer spending data is likely to show a rebound in spending in May after a surprise decline the previous month. The U.S. Commerce Department is expected to report that consumer spending increased 0.4 percent in May after slipping 0.1 percent in April. (0830/1230) Separately, the Labor Department releases its weekly update on new filings for unemployment insurance, which likely fell in the latest week. (0830/1230) Sportswear maker Nike, scheduled to report fourth-quarter results after the bell, warned in March that growing pressures from weaker currencies in key emerging markets would take a big toll on its profit in the quarter and into the next fiscal year. It also said sales in China would be unchanged or even down slightly, reviving concerns that it was having trouble finding its bearings in that market after signs of progress in recent quarters. Richmond Fed President Jeffrey Lacker addresses a regional business gathering in Lynchburg, Virginia, about human capital issues, while St. Louis Fed President James Bullard discusses monetary policy and income inequality at the Council on Foreign Relations in New York. (0830/1230) (1305/1705) Separately, Treasury Secretary Jack Lew gives closing remarks before the Home Affordable Fifth Anniversary Summit in Washington. Accenture is likely to report quarterly revenue below the average analyst estimate, according to StarMine. The company had warned last quarter that weakness in its consulting business, which brings in more than half of its revenue, would carry on through the year. Analysts are expecting Accenture to face pricing pressure in its application service business and they suggested that the company might face hurdles converting consulting bookings to revenue. ConAgra Foods warned that its adjusted fourth-quarter profit would be lower than its forecast, as the company struggles with its big push into private-label foods and sales fall in its consumer foods business. When the company reports results before the bell, investors will look for details on its private brands business, where it is having trouble integrating its $5 billion Ralcorp acquisition. There is emerging evidence of a housing sector-wide weakness going beyond the unusual weather, with housing data such as U.S. housing starts and a drop in mortgage applications pointing to a loss of momentum. Builders have consistently raised concerns about stiff credit conditions for buyers and tight supply of building lots and labor. While Lennar Corp has inched up to become the second largest homebuilder from third this year, investors will be keen to know how much longer a large land bank could keep it immune to other problems and maintain its lead against other homebuilders when it reports results. Western Canada-focused media and cable company Shaw Communications is expected to keep losing cable customers, but perhaps at a slower clip, as it fights with telecom company Telus for viewers while notching moderate overall revenue growth. Shaw recently realigned its corporate structure around customers - business or consumer - rather than specific products such as cable TV or Internet. Shaw has avoided the wireless market, instead choosing to build a network of free WiFi access points for its existing customers. Wearable camera maker GoPro's initial public offering is expected to raise about $427.2 million, valuing the company at $3 billion at the top end of its pricing range. GoPro, whose cameras are used by the Discovery Channel and ESPN, reported an 8 percent rise in revenue to $235.7 million for the quarter ended March 31. ServiceMaster Global Holdings, which owns the largest pest control company in the world, Terminix International, is expected to raise up to $754 million in an initial public offering. The offering of 35.9 million shares is expected to be priced between $18 and $21 per share, valuing the company at up to $3 billion. Brazil's central bank is scheduled to release its estimates of economic growth and inflation for 2014 and 2015. The bank's annual inflation forecasts will likely remain above the 4.5 percent center of the target in the next two years despite a year-long campaign by policymakers to raise borrowing costs. The bank could also comment on the government's attempts to limit public spending, which is considered insufficient by many local analysts. Central bank director Carlos Hamilton Araujo will hold a press conference after the release of the report. (0730/1130) (Compiled by Ayesha Sruti Ahmed in Bangalore; Editing by Kirti Pandey)
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