What to Watch in the Day Ahead - Thursday, April 24

Reuters
04-24
What to Watch in the Day Ahead - Thursday, April 24

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Alphabet, Google's parent company, is expected to report higher first-quarter revenue, driven by continued strength in its cloud services and advertising business. However, growth in both areas is likely to have moderated. Investors will be paying close attention to any remarks on how tariffs might affect the company's AI ambitions, as well as insights into the state of the U.S. advertising market.

Intel is expected to report a decline in first-quarter revenue, with investor focus centered on newly appointed CEO Lip-Bu Tan's strategic plans to revitalize the company. The update comes against the backdrop of a global trade war, adding further pressure on the chipmaker's turnaround efforts.

Procter & Gamble is expected to report a decline in quarterly revenue during its third-quarter results, as U.S. consumers pull back on spending for higher-priced diapers and other household essentials. Investors will be looking for insights into consumer sentiment and spending trends for the remainder of the year from the consumer goods giant.

PepsiCo is expected to report a decline in first-quarter revenue, reflecting softer U.S. consumer spending on sodas and snacks.

Southwest Airlines is set to announce its first-quarter earnings, with expectations pointing to a reduced loss. Meanwhile, American Airlines is also preparing to release its first-quarter results and is anticipated to report a larger loss. Investors will be paying close attention to any commentary from both carriers regarding the impact of tariffs on travel demand.

On the U.S. economic front, durable goods orders for March are projected to rise by 2%, following a 1% increase in February. Excluding transportation, orders are expected to climb by 0.3%, a slowdown from February's 0.7% gain. Meanwhile, the Labor Department is anticipated to report initial claims for state unemployment benefits likely increased 7,000 to a seasonally adjusted 222,000 for the week ended April 19, from 215,000 in the previous week. Continuing claims are forecast to edge down to a seasonally adjusted 1.875 million from 1.885 million. In a separate release, the National Association of Realtors is expected to show a 3% decline in home sales for March, following a 4.2% surge in February, bringing the annualized rate to 4.13 million units.

Minneapolis Federal Reserve President Neel Kashkari is set to take part in a moderated Q&A session during the University of Minnesota College of Science and Engineering event titled "Innovating the Future: Perspectives on Science, Engineering and the Economy". (1700/2100)

Bristol Myers Squibb is set to report its first-quarter results before markets open. Investors will closely watch for any changes to the drugmaker's annual outlook and the impact of Medicare policy changes on revenues from high-priced medicines, including cancer drug Revlimid. Focus will also be on any comments on potential pharmaceutical tariffs and the performance of its schizophrenia drug Cobenfy.

Telecom and entertainment giant Comcast is expected to report a fall in total revenue in the first quarter due to lower advertising spend.

Monopoly owner Hasbro is expected to post a rise in first-quarter revenue, helped by improving demand for its toys and games. Investors will look for comments on the impact from tariffs, demand, updates on the company's growth plan as well as annual forecasts.

Beverage maker Keurig Dr Pepper is expected to post a rise in first-quarter revenue, helped by steady demand for its sodas and tonic water. Investors will look for comments on pricing actions, demand, tariffs and annual forecasts.

Farming supplies retailer Tractor Supply is expected to post a rise in first-quarter revenue, helped by steady demand for discretionary and agricultural products. Investors will look for comments on demand, pricing action, tariffs and annual forecasts.

Boeing shareholders will vote on compensation for recently appointed CEO Kelly Ortberg, along with DEI-related proposals at the U.S. planemaker's annual general meeting.

Canada's business barometer will be in focus for Canadian investors.

In Mexico, annual inflation for the first half of April is expected to ease to 3.89%, from 3.93% in the latter half of March. Core inflation is projected to come in at 3.78% year-over-year.

(Compiled by Archak Sengupta in Bengaluru; Edited by Vijay Kishore)

((Archak.Sengupta@thomsonreuters.com;))

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