What to Watch in the Day Ahead - Wednesday, November 5

Reuters
Nov 05
What to Watch in the Day Ahead - Wednesday, November 5

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On the U.S. economic front, investors will watch for ADP's National Employment Report for October, which is expected to show a 28,000 increase in private payrolls after a 32,000 decline in September, offering fresh clues on labor market momentum. The ISM non-manufacturing PMI for October is also due, with economists forecasting a reading of 50.8, up from 50 in the previous month, signaling modest expansion in services activity. In addition, S&P Global's final composite and services PMI readings for October will also be on the radar.

Qualcomm is expected to report a jump in its fourth-quarter sales as an uptick in global smartphone demand spurs sales of its chips.

Burger chain operator McDonald's is expected to post a jump in third-quarter revenue, likely helped by steady demand for its affordable combo meals. Investors will parse the report for hints on the health of the lower-income consumer in a tough restaurant spending backdrop, October demand trends, response to its limited-time offers and pricing strategy for the year ahead.

Snap is expected to report its slowest revenue growth in over a year for the third quarter, a sign that the Snapchat parent is facing intense competition from dominant social media companies, including Meta and TikTok. Investors will be looking for commentary about how the company is navigating an uncertain economic environment, where marketers are spending cautiously.

Humana is set to report its third-quarter results before markets open. Investors will be watching for the company's comments on medical costs and healthcare demand within its government-backed plans for older adults, as well as any updates to its full-year outlook.

Lyft is expected to report a 12% jump in third-quarter revenue thanks to strong demand for its ride-hailing services in smaller towns.

DoorDash is expected to post a rise in the third-quarter revenue driven by strong demand for delivery services. Investors will look out for comments on new promotional activity and consumer demand.

Coty is expected to post downbeat first-quarter sales as the US consumer remained wary of inflationary pressures amid Trump's tariff-driven uncertainties. Investors will also be keen to hear more on fragrances after Estee Lauder's results were driven by solid demand for its perfumes. Any update on its strategic review, which could lead to divestment of CoverGirl, will also be of interest.

Elf Beauty is expected to post upbeat second-quarter results, riding high on its popular brands, including celebrity-owned Rhodes, which it acquired earlier this year. Its commentary on whether price is a deciding factor for consumers amid trade-driven uncertainties and reinstation of its annual outlook will be on top of investors' watchlist.

The New York Times is expected to report a rise in third-quarter revenue, driven by steady growth in subscription revenues due to the publisher's efforts to bundle core news content with lifestyle-oriented content. Investors will be focused on the company's outlook and commentary on any potential new licensing deals.

Duolingo is expected to report a 19% jump in third-quarter revenue as more users subscribed to its AI-based plans.

PPL Corp is expected to post an adjusted profit of 46 cents per share for the third quarter, according to data compiled by LSEG. Investors will look out for comments on power demand requests from data centers and any capital expenditure news, as power demand is expected to increase in the coming two years.

Targa Resources will report its third-quarter results before the market opens. Analysts expect the company to report an adjusted profit of $2.09 per share for the quarter ended September 30.

Bio-Techne Corp is expected to report first-quarter results. Investor focus will be on the quarterly performance and any changes to the company's performance due to President Donald Trump's shifting trade policies.

Air Canada is expected to report lower third-quarter revenue after a four-day strike by its flight attendants crippled operations in September.

In Brazil, the central bank is expected to keep the Selic interest rate steady at 15%, maintaining its tightening stance amid persistent inflation pressures. Separately, S&P Global will release services and composite PMI data for October, providing further insight into the country's economic momentum.

(Compiled by Kumar Satyam; Edited by Vijay Kishore)

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

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