US EQUITIES WEEK AHEAD: Debt Suspense; July Jobs, Auto Data

All eyes are on Washington next week as U.S. lawmakers continue arguing over competing budget plans tied to the federal debt ceiling, which the Treasury Department says must be increased by Tuesday if the government wants to continue meeting its payment obligations.

Standard & Poor's, meanwhile, is holding firm on its promise to downgrade U.S. debt even if lawmakers agree to lift the ceiling, as the credit-rating agency is suggesting the country would need a $4 trillion deficit-reduction deal to maintain its AAA status. Markets have so far reacted cautiously to the impasse, but an unprecedented rating action on federal bonds could send shock waves through the global economy.

 
   CBS, Time Warner, Viacom Report 2Q Results

CBS Corp. (CBS) will kick off a series of quarterly earnings reports from U.S. media firms on Tuesday, with Time Warner Inc. (TWX); NBC Universal's majority owner, Comcast Corp. (CMSCA, CMCSK);, and Viacom Inc. (VIA, VIAB) slated to report later in the week.

Allstate Corp. (ALL), Church & Dwight Co. (CHD), Lowe's Cos. (LOW) and Pfizer Inc. (PFE) also have quarterly earnings scheduled next week.

 
   Big 3 Seen Gaining Ground In July Car Sales

Auto makers are forecast to report a modest 1.6% increase in U.S. new-vehicle sales in July from a year ago, according to car-shopping website Edmunds.com, as stronger sales from Detroit's Big Three and Nissan Motor Co. (NSANY, 7201.TO) should again offset declines from Japan's other top manufacturers. Chrysler Group LLC is projected to post a 15% increase in sales from year-earlier levels, which would make it the strongest performer in July. The industry's results are due Tuesday.

 
   European Banks Expected To Take Hit From Greece

Earnings reports from French banking giants BNP Paribas SA (BNP.FR, BNPQY) and Societe Generale SA (GLE.FR) next week are expected to show big impacts from the Greek rescue plan. The head of the French Banking Federation on Friday predicted French banks and insurers will lose around EUR3 billion by writing down the value of Greek bonds but said French financial institutions remain "solid" and have little exposure to Greece overall.

 
   Senate To Question Nominee For Consumer Agency

The Senate Banking Committee on Thursday will decide whether to confirm former Ohio Attorney General Richard Cordray to lead the new U.S. Consumer Financial Protection Bureau. The Obama administration picked Cordray over presidential adviser Elizabeth Warren after some senators cast doubt over her confirmation chances.

 
   Eyes On Australian Central Bank's Rate Decision

A once-in-a-century commodities boom could prompt the Reserve Bank of Australia to raise the country's interest rates for the first time since November as officials look to tame an alarming inflation jump over the past six months. The bank's policy-making board will meet on Tuesday to weigh the price data against signs of slow credit growth. Australia & New Zealand Banking Group (ANZ.AU) on Thursday predicted the central bank will hike interest rates 25 basis points, but other economists surveyed said the bank will wait until the fourth quarter at earliest.

 
    Higher Sales Expected At US Retail Chains

Same-store sales at big U.S. retailers are expected to climb 4.2% in July, according to a poll of analysts conducted by Thomson Reuters. High unemployment and weak consumer confidence still give discount chains an edge over mid-priced rivals, while Gap Inc. (GPS) continues to struggle--analysts forecast a 1.3% sales drop at the company's namesake stores open for at least a year.

 
   July Jobs Data Add To Potentially Volatile Week

The U.S. Labor Department on Friday will release July unemployment figures, which could either move markets or just be a footnote to the bigger headlines over raising the debt ceiling. The department last Thursday said initial claims for unemployment insurance fell below the crucial 400,000 level, which could signal positive momentum in the labor market. ADP's July employment report on Wednesday will foreshadow the government data.

The Institute for Supply Management also releases data on manufacturing activity Monday, followed by the U.S. Census Bureau's factory orders report on Wednesday.

 
   Spanish Debt Sale To Test Investors' Confidence

An auction of Spanish government debt slated for Thursday will test the confidence of investors still fretting about the effect of the Greek crisis on other shaky euro-zone economies. Moody's Investors Service on Friday highlighted the risks when it put Spain's Aa2 rating on review for possible downgrade Friday, citing rising funding costs and the possible precedent for bondholder losses set by the latest Greek bailout. At the same time, Barclays Capital said the high proportion of domestic investors holding the country's debt should help drive natural demand for the auction.

 
   Alabama County Might File For Bankruptcy

Leaders of Alabama's debt-laden Jefferson County are again slated to discuss filing the largest bankruptcy in municipal history unless a counterproposal from creditors succeeds. The county encompassing Birmingham, Ala., could file for bankruptcy Thursday.

 
   Fourth Round Of Sanctions Expected For Syria

The European Union will likely place a fresh round of sanctions on Syria by early next week, several diplomats told Dow Jones Newswires. The new sanctions--the fourth round of restrictive measures--will likely target only "a few additional names," one diplomat said, while another said it might include one company, but could not give further detail. Syrian strongman Bashar al-Assad is facing increasing international pressure for his violent crackdown on political protests in recent weeks.

 
   Uganda Protests Continue Over Rising Food Prices

Ugandan opposition parties said they will resume nationwide protests against escalating food prices and inflation next week, blaming the government for not addressing problems with the economy. The group is planning to resume the protests in the Ugandan western robusta coffee hub of Masaka.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com

--Nicholas Bariyo, Emese Bartha, James Glynn, Alessandro Torello and other Dow Jones Newswires staff contributed to this report.

CBS (NYSE:CBS)
Historical Stock Chart
From May 2024 to Jun 2024