The second-quarter results unofficially kick off when Alcoa Inc.
(AA) reports Monday, leading a roster of other heavy hitters
reporting next week, including two of the country's biggest banks.
Deutsche Boerse AG (DB1.XE, DBOEF) shareholders have their turn to
vote on its proposed $24.6 billion merger with NYSE Euronext (NYX),
and the White House will resume talks on a budget deal with
Congressional leaders this weekend.
Analysts Predict Surge In Alcoa Earnings
The aluminum producer, which has been reporting steadily
increasing prices and output, is expected to post a surge in
quarterly earnings Monday. Analysts expect earnings per share to
leap to 33 cents from 13 cents on a 22% revenue increase, according
to a survey by Thomson Reuters. Like other metal makers, Alcoa has
strengthened on welling demand from automobile and aerospace
companies and growth in China and other emerging markets. During
the recession, Alcoa idled a quarter of its capacity and cut
thousands of jobs to save money as demand tanked. Though business
has revived, the company noted some headwinds in its last report,
such as pressure from raw-materials costs.
Alcoa also planned a $750 million, 10-year debt offering
Wednesday.
Deutsche Boerse Shareholders To Vote on NYSE Euronext Deal
Deutsche Boerse on Wednesday will seek approval from its
shareholders to merge with NYSE Euronext, the next hurdle for a
merger that would form the biggest exchange group in the world.
NYSE Euronext investor-owners overwhelmingly approved the deal
last Thursday, but there could be a higher threshold facing the
deal when it comes before shareholders in the German exchange
group. Deutsche Boerse must secure 75% of its own shares in a
tender offer to approve the deal.
Provided the deal secures full investor approval, the exchange
groups will face a lengthy process of winning regulatory approval
for the combination, which is expected to require more than 40
separate clearances.
Data On U.S. Trade, Inflation, Industrial Output
Investors will get a glimpse of how the U.S. trade deficit and
inflation are faring after unexpected outcomes for both in their
previous releases.
The Commerce Department releases the May trade balance Tuesday.
The prior month's deficit unexpectedly contracted to its lowest
level yet this year, as exports jumped to a new high and pricey oil
purchases were shunned. Then Friday, the Labor Department reports
the country's consumer price index for June. In May, overall
consumer prices grew more than expected, and underlying
inflation--which excludes volatile food and energy costs--climbed
at the fastest pace in nearly three years because of higher prices
for apparel, housing, new vehicles and recreation. The department
will have already weighed in the day before on producer prices, a
measurement of how much manufacturers and wholesalers pay for goods
and materials.
Also Friday, the Federal Reserve report will detail U.S.
industrial production. Lately, increasing output has been somewhat
hamstrung by declines in the automobile sector, which has been
dealing with supply disruptions from March's earthquake in
Japan.
JPM, Citi Expected To Post Mixed Results
J.P. Morgan Chase & Co. (JPM) will lead off the big banks'
earnings season Thursday, when the company is expected to report
flat revenue from a year earlier despite stronger performance in
its capital markets business. Analysts expect lower trading volumes
and debt underwriting fees to be partially offset by improving loan
quality, particularly in credit cards.
Citigroup Inc. (C), meanwhile, has struggled to regain luster in
its capital markets business, and the decline in bond trading and
underwriting won't help as the bank seeks to boost revenue
following the financial meltdown. Its international operations have
performed well, however. Citi will report Friday.
Fastenal, Google, Marriott Round Out Earnings Calendar
Fastenal Co. (FAST), Google Inc. (GOOG) and Marriott
International Inc. (MAR) round out the slate of earnings reporters,
and all three are expected to post improved results.
Fastenal--which sells fasteners, office products and other
industrial and construction supplies--has been strengthening lately
as manufacturing customers ramp up. Google's advertising revenue
has continued to flow, though the search giant's surging cost
pressured the bottom line in the prior quarter. Marriott also
struggled with a weak spot last quarter, demand in North America,
though the hotel operator's bottom line kept within its forecast
range.
Campbell To Serve Up Answers To Investors Tuesday
Campbell Soup (CPB) will pitch its latest strategy under new
President and Chief Executive Denise Morrison Tuesday at a meeting
of analysts and investors. The food company is looking for ways to
revive declining U.S. soup sales and recently exited from Russia,
saying there are better prospects in more receptive markets like
China. The company, which also makes Pepperidge Farm foods, V8
beverages and Prego sauces, has struggled with pressure from
lower-priced store brands.
WaMu Seeks Approval For Bankruptcy Plan
Washington Mutual Inc. (WAMUQ) will ask the Wilmington, Del.,
bankruptcy court on Wednesday to confirm its creditor-repayment
plan over the opposition of former ally and major creditor Aurelius
Capital Management. The hedge fund wants a greater contribution to
the settlement from J.P. Morgan Chase & Co. (JPM), which bought
Washington Mutual Bank for $1.8 billion in September 2008 after it
was seized by regulators.
A consortium of technology companies will also be in the
Wilmington bankruptcy court on Monday to seek approval to buy
Nortel Networks Corp.'s (NRTLQ) patent portfolio for $4.5 billion.
Buyers including Apple Inc. (AAPL), Microsoft Corp. (MSFT) and
BlackBerry maker Research in Motion Ltd. (RIMM, RIM.T) won a
spirited auction last month for the patent trove that drove up the
purchase price five-times higher than Google's $900 million
stalking-horse bid.
U.S. Leaders Resume Debt Ceiling Talks Sunday
President Barack Obama will again meet with congressional
leaders on Sunday to resume talks on the federal deficit. The
debate has so far focused on differences over taxes and spending on
federal programs, but once-unthinkable changes to Social Security
could now also be on the table, according to The Wall Street
Journal. The U.S. will reach its $14.29 trillion borrowing limit
Aug. 2, but the White House said it wants the issue solved by July
22.
U.S., China to Resume Discussions Over Auditors
U.S. and Chinese officials will restart talks next week on a
potential deal to let U.S. examiners inspect auditing firms based
in China amid heightened concern about Chinese "reverse merger"
companies using backdoor methods to tap the U.S. capital markets.
Regulators have stepped up scrutiny of so-called reverse-merger
companies after investor losses at some Chinese firms that used
shell companies to list shares on U.S. exchanges. Last month, the
Securities and Exchange Commission issued a rare warning to
investors about the quality of such companies' financial
reporting
A delegation from the SEC and the Public Company Accounting
Oversight Board, which oversees audit firms, will meet in Beijing
next week with senior leadership of the China's Finance Ministry
and the China Securities Regulatory Commission. SEC staff will also
meet separately with Chinese securities regulators to discuss
cooperation on enforcement efforts
Chilean Copper Miners Plan Monday Strike
The umbrella union at Chilean state copper giant Corporacion
Nacional del Cobre says it will launch a 24-hour strike Monday to
protest the company's restructuring and what it calls initial steps
toward privatizing the Gaby copper mine. In a recent newspaper
interview, Codelco's board president said the daylong strike could
cost the company $30 million to $40 million. Codelco produces about
1.7 million metric tons of copper a year.
-By Joan E. Solsman and Drew FitzGerald, Dow Jones Newswires;
212-416-2291; joan.solsman@dowjones.com
-- Marie Beaudette, David Benoit, Jacob Bunge, Jessica Holzer,
Carolina Pica, Matthias Rieker and Steven Russolillo contributed to
this report.
Fastenal (NASDAQ:FAST)
Historical Stock Chart
From May 2024 to Jun 2024
Fastenal (NASDAQ:FAST)
Historical Stock Chart
From Jun 2023 to Jun 2024
