What to Watch in the Day Ahead - Friday, July 30
29/07/2021 19:30
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Exxon Mobil Corp is expected to post its second quarter of profits in a row after a long streak
of losses on a big boost from its chemicals business. Separately, Chevron Corp's second-quarter
results are expected to show a big jump in earnings on higher oil and gas prices. Per share
profit is estimated to be $1.56, according to IBES Refinitiv, after a big loss on writedowns a
year ago.
On the U.S. economic calendar, the Commerce Department is expected to report personal
consumption expenditure (PCE) price index figures for June. The PCE price index excluding the
volatile food and energy components likely increased 0.6% in June, after advancing 0.5% in May.
In the 12 months through June, the so-called core PCE price index likely shot up 3.7%.
Separately, personal income is expected to have fallen 0.3% in June, following a 2% drop in May.
Additionally, the University of Michigan is expected to report its final consumer sentiment
index in July remained unchanged at 80.8 from its preliminary reading. (1000/1400)
Procter & Gamble Co, the Tide detergent and Pampers diaper maker, is expected to post a rise in
fourth-quarter revenue boosted by demand for its beauty and skin care products from people
stepping out of their homes again. Investors will also be looking out for any update from the
company on how much margins could be squeezed by surging commodity costs.
AbbVie Inc is expected to report second-quarter results, where investors would focus on sales of
the company's newer drugs such as Rinvoq and psoriasis drug Skyrizi. The company has been
relying on the treatments to help cushion an expected blow from competition for its blockbuster
drug Humira. Investors would also watch out for Botox injection sales.
Caterpillar Inc is expected to report higher second-quarter profit, benefiting from a recovery
in the global economy.
Federal Reserve Bank of St. Louis President James Bullard is scheduled to speak on the U.S.
economy and monetary policy at European Economics and Financial Centre Virtual Event via Zoom.
Lazard Ltd will report second-quarter earnings and the investment bank is expected to provide an
update on its expenses and gains from dealmaking activity.
The technology entrepreneur Kaleil Isaza Tuzman is to be sentenced in Manhattan federal court
after being convicted of fraud involving Kit Digital, a video technology company he ran. The
Harvard graduate and former Goldman Sachs Group Inc analyst was convicted in 2017 after being
extradited from Colombia. He had achieved fame after being featured in "Startup.com," which
premiered at the Sundance Film Festival in 2001.
Statistics Canada is expected to report the country's economy decreased 0.3% in May, the same
pace as in April. Canada's producer prices data for June is scheduled for release, which rose by
2.7% in May. The country's budget balance figures for May are also due.
Burger King parent Restaurant Brands International Inc is expected to post an increase in
second-quarter profit, as more people dine out following the easing of coronavirus restrictions.
Investors will look out for comments on the expected impact of ingredients price increases and
labor challenges in the United States.
Mexico's national statistics agency is expected to report gross domestic product likely grew
1.7% in the second quarter. In annual terms, the economy likely expanded 19.8% compared to a
year earlier. Brazil's statistics agency IBGE is expected to report unemployment rate likely
rose 14.5% in May, following a 14.7% gain in the month before. (0800/1200) The country is
expected to post a primary budget deficit of $60 billion in June. Chile's government statistics
agency INE is expected to report manufacturing output ticked up 10.2% year-on-year in June. The
country's jobless rate in June likely remained unchanged at 10% from the month before.
(Compiled by Nidhi C Sai in Bengaluru; Editing by Krishna Chandra Eluri)
((Nidhi.CSai@thomsonreuters.com))