What to Watch in the Week Ahead and on Monday, August 26
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ON MONDAY
The Commerce Department's Census Bureau will likely report a 5.0% rise in orders of durable goods for July, after slumping 6.7% in the previous month. Meanwhile, durable goods excluding transport is expected to decline 0.1% for the month, after rising 0.4% in June.
On the Latin American front, Brazil's consumer confidence index for August and current account figures for July are due for release.
REST OF THE WEEK
Nvidia will report results for its fiscal second quarter on Wednesday. Analysts expect its second-quarter revenue to more than double. Investors will look out for updates on widely reported production delays and indications of resilient demand for Nvidia's AI chips.
Market participants can look forward to several important U.S. data releases this week. On Friday, the July personal consumption expenditures (PCE) price index is expected to be the highlight, with an anticipated annual increase of 2.5% after a similar reading the previous month. The monthly reading is expected to show a 0.2% increase from 0.1% in the prior month. The Conference Board's consumer confidence index for August, scheduled for Tuesday, is forecast to show a reading of 100.6 after a 100.3 reading in July. On Thursday, the second estimate for the second quarter GDP figures is expected to show no change at 2.8%. Furthermore, initial jobless claims for the week ending August 24 are projected to rise 2,000 to 234,000.
Best Buy is expected to report a drop in second-quarter same-store sales on Thursday, as consumers in the United States remain cautious about purchasing pricier electronics and gadgets. Investors will watch out for comments on consumer sentiment ahead of the back-to-school and holiday shopping seasons.
Kohl's is expected to post a fall in second-quarter same-store sales on Wednesday, as department stores struggle to attract deal-hunting customers to their stores. Investors will watch out for comments on promotional strategies ahead of the back-to-school and holiday shopping season. Additionally, Bath & Body Works is expected to post a decline in second-quarter revenue, hurt by sluggish demand for its pricey scented candles and body care products. Investors will look for comments on pricing actions, demand, as well as impact of increased promotions and marketing expenses, and annual forecasts. However, Ulta Beauty, on Thursday, is expected to post a rise in second-quarter revenue on resilient demand for beauty and skincare products.
Discount store operator Dollar General is expected to post a rise in second-quarter revenue on Thursday, helped by steady demand for its groceries and essentials. Investors will look out for comments on demand, impact of retail shrink trends, inventory levels, and annual forecasts.
On Wednesday, Federal Reserve Board Governor Christopher Waller is scheduled to speak on "Payments" before the Global Fintech Festival 2024 in Mumbai, India. Separately, Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak on the economic outlook in a moderated conversation hosted by the Stanford Club of Georgia and the Stanford Black Alumni Association-Atlanta. Additionally, Bostic, on Thursday, is expected to give "Introduction to the Federal Reserve and an Economic Outlook" presentation before a Georgia Tech Scheller College of Business Management of Financial Institutions class.
Jif peanut butter maker JM Smucker is expected to post a rise in first-quarter revenue on Wednesday, helped by steady demand for its frozen snacks and pet food. Investors will look for comments on pricing actions, demand, impact of coffee prices, and annual forecasts.
Business software giant Salesforce is expected to report a single-digit rise in second-quarter revenue on Wednesday, as it sees growth at its business cloud slow amid a tough macro-economic environment and rising competition from smaller players. On the same day, HP Inc is expected to post a 1.4% rise in revenue in the third quarter, signaling a recovery in the personal computer market.
On the Canadian banks front, Bank of Nova Scotia, on Tuesday, is expected to post a lower third quarter profit hurt by higher loan loss provisions. Separately, Bank of Montreal's third-quarter profit is likely to drop as the lender is expected to set aside higher provisions for credit losses. Investors will be closely looking at the bank's U.S. performance which has been impacted by the 'higher for longer' rate environment. On Wednesday, Royal Bank of Canada's profit is expected to rise with third quarter set to be the first full quarter of HSBC Canada results. Investors will closely look at the performance of RBC's U.S. unit City National. On the same day, National Bank of Canada is expected to post a higher third-quarter profit as it earned higher interest income on the loans it gave to its customers. Meanwhile, Canadian Imperial Bank of Commerce's third-quarter quarter profit is expected to jump on Thursday, driven by higher interest income and lower loan loss provisions.
Nordstrom is expected to post a rise in second-quarter revenue on Tuesday, as the department store chain benefits from fresher clothing and footwear offerings. Investors will look out for comments on margin outlook and holiday demand.
Jack Daniel's maker Brown Forman is expected to post a decline in first-quarter revenue on Thursday, hurt by sluggish demand for its higher-priced spirits and bourbon whiskeys. Investors will look for comments on demand, pricing actions, impact of rising input costs and annual forecasts.
Birkenstock is expected to post revenue growth for the third quarter on Thursday, as the German sandal maker benefits from customers seeking premium and in-trend footwear. Investors will look out for comments on the company's plan to increase prices, expansion details, supply chain costs, direct-to-consumer demand, wholesale partnerships and an update in annual forecasts.
Cooper Companies is set to report its third quarter results on Wednesday after markets close. Focus will be on comments regarding the contact lens market and any changes to its annual forecast.
In Canada, the gross domestic product number for June as well as the second quarter are due for release on Friday. Meanwhile, the country's current account figures are due on Thursday.
Brazil's IPCA-15 consumer price index in the month to mid-August will be on the radar for Latin American investors on Tuesday. On the same day, Mexico is scheduled to release its July trade balance figures.
Compiled by Archak Sengupta in Bengaluru; Editing by Shreya Biswas
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