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ON MONDAY:
McDonald's reports its fourth-quarter results and is expected to report a rise in quarterly same-store sales, as its affordable burgers and fries attract customers even as they spend cautiously. Analysts will be focused on the company's outlook for 2024, its comments on traffic trends, margin expectations and plans for promotions.
Caterpillar is expected to report a rise in fourth-quarter profit on the back of strong demand for large construction equipment. Investors will look for comments on inventory levels and the impact of high borrowing costs on the company's order books.
On the U.S. economic front, ISM -manufacturing PMI is likely to show a reading of 52.0 in January after a print of 50.6 in December. Additionally, S&P Global's final reading for composite PMI is scheduled for release.
Federal Reserve Bank of Atlanta President Raphael Bostic is scheduled to give welcome remarks before the virtual "Uneven Outcomes in the Labor Market" conference hosted by the Federal Reserve Board of Governors and the Federal Reserve Banks of Atlanta, Boston, Cleveland, Philadelphia, San Francisco, and St. Louis. (1400/1900)
Tyson Foods, in its first-quarter results, is expected to report lower earnings per share and income compared to a year ago and flat revenue, Eikon estimates show. Tight cattle supplies have raised costs for U.S. beef processors, but producers still sent more of the animals than expected to feedlots last fall in a potential boost to Tyson. The meat company has closed several U.S. chicken plants in a bid to improve results, and investors will watch to see whether the cutbacks are paying off. Tyson recently opened U.S. facilities to produce chicken and bacon and could face start-up costs in its prepared foods division.
Estee Lauder is expected to post a decline in second-quarter revenue, hurt by slowing sales from Asia Travel retail and continued pressure from retailers cutting back inventory in the region. Investors will look out for comments on China's recovery, demand in the United States, and any disruption to business due to the conflict in the Middle East.
Commercial REIT Simon Property Group is expected to post a rise in fourth-quarter revenue on strong leasing demand for its mall spaces. Investors will look for occupancy trends for the full year and any forecast the company may provide.
FMC Corp is expected to report a fall in fourth-quarter profit, hurt by lower sales volumes in Latin America, mainly due to destocking in Brazil and drought in Argentina.
Chipmaker ON Semiconductor is expected to report a drop in fourth-quarter revenue on Monday, hurt by sluggish demand for its silicon carbide chips as Electric vehicle growth slows.
For Canada, the country's leading index for January is set for release.
On the Latin American front, S&P Global's services and composite Purchasing Managers Index (PMI) for Brazil are due. Meanwhile, according to central bank data, the country is expected to post a current account deficit of $7.428 billion for December, compared to a 1.600 billion deficit in November. Meanwhile, Foreign direct investment for the month probably reached $5.850 billion.
REST OF THE WEEK:
Walt Disney is expected to report first-quarter results on Wednesday. Analysts expect Disney's revenue to grow by 0.7% in the December quarter, however, Wall Street expects ad revenue to drop 63% and revenue from linear to fall by 59%.
PepsiCo is expected to post a rise in fourth-quarter revenue on Friday, helped by resilient demand for its sodas and snacks at a time when customers have largely cut back on pricier items. Investors will look out for volume growth, comments on pricing actions and any disruption to business due to the conflict in the Middle East.
On the U.S. economic calendar, the Labor Department's jobless claims data is coming out on Thursday. Initial claims for state unemployment benefits probably dropped 4,000 to a seasonally adjusted 220,000 for the week ending Feb. 3. Number of people receiving benefits after an initial week of aid, also known as continued claims, for the week ending Jan. 27 is also due. On Wednesday, the Commerce Department is scheduled to report that international trade likely contracted to a deficit of $62.2 billion in December from a deficit of $63.2 billion in November. Separately, the Commerce Department will likely report the wholesale inventories data for December on Thursday.
On Wednesday, Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to participate in a conversation before the Economic Club of Washington, D.C. The day, Barkin will speak before the Economic Club of New York. Federal Reserve Bank of Minneapolis President Neel Kashkari will likely participate in a question-and-answer session during Tuesday's Greater Mankato Growth luncheon. Separately, Federal Reserve Bank of Cleveland President Loretta Mester is expected to speak on the economic outlook before the Ohio Bankers League Economic Summit on the same day. Also on Tuesday, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak on "The Federal Reserve's Role in Our Economy" before a Rowan Institute for Public Policy & Citizenship event. On Wednesday, Federal Reserve Board Governor Adriana Kugler is likely to speak on "The Outlook for the Economy and Monetary Policy" before the Brookings Institution.
On Tuesday, Federal Reserve Bank of Boston President Susan Collins is expected to give opening and overview remarks before the "Uneven Outcomes in the Labor Market" virtual conference hosted by the Federal Reserve Board of Governors and the Federal Reserve Banks of Atlanta, Boston, Cleveland, Philadelphia, San Francisco, and St. Louis. At the same event on Wednesday, Federal Reserve Board Governor Michelle Bowman is likely to speak via pre-recorded video on "Supporting Entrepreneurship and Small Businesses". Meanwhile, Collins is expected to offer economic perspectives before the Boston Economic Club on the same day.
Eli Lilly is scheduled to report fourth-quarter results on Tuesday before markets open. Investors will closely watch the performance of its weight-loss drug Zepbound, which recently received regulatory approvals in Europe, the U.K., and the U.S. Focus will be on the drugmaker's 2024 sales and profit forecast, as well as the company's plans to ramp up supply for its top-selling diabetes drug Mounjaro and Zepbound.
Philip Morris International is expected to post a rise in fourth-quarter revenue on Thursday, helped by higher pricing of its combustible cigarettes and steady demand for its heated tobacco products. Investors will look out for comments on demand trends and any forecast the company provides.
S&P Global is expected to report a jump in fourth-quarter profit on Thursday, helped by strong demand for data and analytics. Separately, PayPal is expected to report a rise in adjusted profit on Wednesday, with analysts and investors closely watching for updates on the payments firm's plans to expand its margins and reignite growth in -transaction-related segments. The payments company is also expected to provide its outlook for 2024 profit and revenue growth with all eyes on spending trends in an uncertain economy. On the same day, Business payments firm Fleetcor Technologies is expected to post a rise in fourth-quarter profit, helped by strong performance in its fleet segment. On Tuesday, Jack Henry & Associates is expected to report a drop in second quarter profit on Tuesday hurt by an increase in its operating expense.
NYSE-parent Intercontinental Exchange is expected to report a rise in fourth-quarter profit on Thursday, helped by stronger trading volumes. Analysts and investors will watch closely for updates on mortgage business growth and recovery in initial public offerings.
CVS Health will report fourth-quarter results before markets open on Wednesday. The focus will be on the company's forecast for 2024 and comments on medical costs and its pharmacy pricing model.
Spirit Airlines is expected to report its fourth quarter results on Thursday. Investors will be watching for the company's plans to refinance its debt and any comments on its blocked merger with JetBlue Airways.
U.S. truck engine maker Cummins is expected to report higher fourth-quarter results on Tuesday as demand for engines holds strong. The growing interest in clean energy models is also anticipated to boost Cummins' margins as it increasingly invests in fuel cell and hydrogen production technology. Investors would be interested to know the company's annual guidance and how it will accommodate a slow recovery in the Chinese market.
Centene will report fourth-quarter results on Tuesday before markets open. Investors will look for comments regarding the insurer's medical costs and performance at its Medicaid insurance business, as well as any updates to its F.Y. 2024 earnings outlook.
Coty is expected to post a rise in second-quarter revenue on Wednesday, riding on robust demand for beauty products across price brackets. Investors will watch out for comments on pricing actions and product launches from the CoverGirl parent. Meanwhile, Mattel is expected to post a rise in fourth-quarter revenue, as the company rides on a boost to sales from the popularity of the Barbie movie during the crucial holiday season. Investors will watch out for comments on its American Girl and Fisher-Price segments and demand trends in the broader toy industry.
Aerospace supplier Spirit AeroSystems, on Tuesday, is likely to release its fourth-quarter results on the heels of a mid-air cabin panel blowout that resulted in the grounding of the Boeing 737 MAX 9 fleet. On the same day, the head of the Federal Aviation Administration is expected to appear before Congress as the agency faces questions on its oversight of planemaker Boeing following the emergency landing on Jan. 5 of a 737 MAX 9.
Pringles maker Kellanova, on Thursday, is expected to report a fall in fourth-quarter revenue hurt by weakening demand for its Cheez-It crackers and Rice Krispies, which took a hit from higher prices. Investors will look out for volume growth, comments on pricing and input costs.
Shares of Warburg Pincus-backed Fortegra Group are set to debut on the New York Stock Exchange on Friday. Prospective IPO candidates will watch the debut closely to gauge investor appetite for insurance companies.
On Tuesday, insurer Prudential Financial is expected to post a rise in fourth-quarter profit on higher premiums and investment income. Meanwhile, Willis Towers Watson is expected to report a jump in fourth-quarter profit on the same day, helped by robust demand for its broking and consulting services. The following day, Globe Life is expected to post a rise in fourth-quarter profit on higher insurance underwriting and investment income.
Global crop trader and processor Bunge is expected to report a fall in fourth-quarter revenue on Wednesday, as improvement in supply had lowered crop prices in the quarter. Investors and analysts will look out for comments on demand and crush margins.
Fox Corp is expected to report a drop in second-quarter revenue on Wednesday as advertisers cut spending on its television due to an uncertain economy.
The New York Times is expected to post a rise in fourth-quarter revenue on Wednesday. Investors will look for updates on the company's ad sales and digital subscriber growth as the publisher aims to achieve 15 million subscribers by the end of 2027.
Home-building products maker Masco is expected to post a decline in fourth-quarter revenue on Thursday, owing to weaker demand for plumbing and architectural products, including paints. Investors will look for comments on demand, pricing action, sales and profit forecast.
On Thursday, Regency Centers is expected to post a rise in fourth-quarter revenue as the commercial REIT benefits from strong leasing demand at its grocery-anchored shopping centers.
VF Corp is expected to post a fall in third-quarter revenue on Tuesday as it struggles to rekindle demand for its iconic brands, such as Vans and The North Face. Investors will look for comments on sales during the crucial holiday season and any cost reduction strategies.
Baxter International is expected to report its fourth-quarter results on Thursday. Investors will focus on the company's 2024 forecast and the sales of its dialysis products and infusion pumps.
Statistics Canada on Friday is likely to indicate that the country's economy added 15,000 jobs in January, compared to just 100 jobs in the previous month. The unemployment rate likely increased to 5.9% in January, from 5.8% in the previous month. Ivey Purchasing Managers Index (PMI) data is scheduled for release on Tuesday. Meanwhile on Wednesday, the country's trade balance data for December month is scheduled for release. Canadian building permit for December are due on Tuesday.
In the Latin American economic calendar, Brazil's government statistics agency IBGE is set to release inflation , as measured by the benchmark IPCA index on Thursday. On Wednesday, the same agency is expected to publish the retail sales for December. Separately, on the same day, the central bank will release the country's trade balance for January and the primary budget balance for December. On Tuesday, inflation data, as measured by the IGP-DI price index, is expected to be released. Meanwhile, Brazil's central bank is scheduled to report the country's bank lending data for December on the same day. The Bank of Mexico is set to announce its interest rate policy on Thursday. The country's statistics agency, INEGI, is scheduled to release headline and core inflation on the same day. On Friday, Mexico's industrial output for the month of December will be published. Separately, Argentina's INDEC statistics agency is set to release December's industrial output data on Tuesday. On Thursday, Chile's statistics agency INE is expected to report inflation for January.
(Compiled by Malini K)