What to Watch in the Day Ahead - Tuesday, November 25

Reuters
11/25
What to Watch in the Day Ahead - Tuesday, November 25

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The U.S. economic calendar features several key data releases. The Labor Department is set to report the producer price index $(PPI)$ for final demand is forecast to rise 0.3% in September, after falling 0.1% in the prior month. On an annual basis, the PPI for final demand likely increased 2.7% in September, compared with 2.6% in August. Meanwhile, the core PPI, which excludes food and energy, is expected to have gained 0.2% in September, following a 0.1% decline in the previous month. Annually, the core PPI probably eased to 2.7% in September from 2.8% in August. The Commerce Department's Census Bureau is forecast to show retail sales rose 0.4% in September, after climbing 0.6% in August. Retail sales excluding autos are expected to have increased 0.3% in September, compared with a 0.7% gain in the prior month. The same department is also set to report business inventories likely edged up 0.1% in August, after rising 0.2% in July. Additionally, the Conference Board's consumer confidence index for November is forecast to show a reading of 93.4, compared to 94.6 in October. The National Association of Realtors is expected to report that pending home sales climbed 0.5% in October, after remaining unchanged in September.

Dell is expected to report higher third-quarter revenue, helped by growing demand for its artificial intelligence-powered servers.

Department store chain Kohl's is expected to post a decline in third-quarter revenue, hurt by frugal consumer spending amid rising economic uncertainty. Investors will look for comments regarding leadership, impact of tariffs on consumer sentiment, performance across stores and digital channels as well as annual forecasts.

Electronics retailer Best Buy is expected to post growth in third-quarter revenue owing to holiday-driven demand for appliances and gadgets. Investors will keep an eye on tariff pressures, pricing actions, promotional strategy and near-term demand landscape.

Alibaba Group is likely to announce its second-quarter results. Analysts will be listening for any gains from the heavily subsidised "instant retail" war the firm has been engaged in, as well as updates on the progress of monetising AI initiatives.

Abercrombie & Fitch is expected to report higher third-quarter sales from year-ago levels, banking on its in-trend denimwear and other apparel. Investors will be keen to hear more about its annual impact from duty on imported goods under the Trump administration. Annual forecast, amidst mixed results from other clothing companies, will also be of interest to market watchers.

Packaged food maker J M Smucker is expected to post a rise in its second-quarter revenue on Tuesday, boosted by strong consumer spending, particularly in the food processing segment. Investors are likely to look for comments on pricing actions, the impact of rising economic uncertainty on consumer sentiment and the annual forecast.

On the Latin American economic front, Brazil's central bank is set to report the current account deficit likely narrowed to $4.850 billion in October from $9.774 billion in September. The same institution is expected to show foreign direct investment probably fell to $6.250 billion in October, compared with $10.671 billion in the prior month. Additionally, Argentina's statistics agency is forecast to report economic activity rose 2.1% year-on-year in September, compared with a 2.4% increase in August.

(Compiled by Kumar Satyam; Edited by Vijay Kishore)

((Kumar.Satyam@thomsonreuters.com;))

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