Boeing Co. (BA) is scheduled to finally deliver its
delay-plagued 787 Dreamliner in the coming week. U.S. lawmakers may
work through the weekend on a funding measure as yet another threat
of government shutdown looms, while Greece and its international
creditors will also be spending the weekend in Washington, as they
strive for a consensus on austerity measures to increase aid. On
the earnings front, Accenture PLC (ACN), one of the world's biggest
standalone consulting companies, and Walgreen Co. (WAG), the
largest U.S. drugstore chain, both report their quarterly results
Tuesday.
Boeing To Deliver First 787 Dreamliner
Boeing is planning three days of events to celebrate the
delivery of its first 787 Dreamliner, its first all-new jetliner in
13 years, after years of delays and billions of dollars in cost
overruns. On Sunday, Boeing is scheduled to deliver the first of
the twin-aisle, ultra-efficient jets to Japan's All Nippon Airways
Co. (9202.TO, ALNPY). But the milestone doesn't alleviate all the
challenges of the Dreamliner program. Boeing said in a recent
filing that the profitability of 787 project is under "significant
pressure," and analysts say the project won't turn a profit for
years.
Another Congressional Stand-off Threatens Government Shutdown
The federal government again faces a shutdown if lawmakers, who
are scheduled to leave for recess next week, fail to agree on
legislation to pay for government when its current funding expires
at the end of next week.
At the heart of the latest standoff is a disagreement between
the parties about how much money to infuse into a depleting
disaster-relief fund and a reduction in funding for
alternative-energy programs. The House of Representatives approved
a short-term bill that would largely extend current federal
government funding through mid-November, but Democrats in the
Senate have pledged to reject it because of what they say are
insufficient funds for those programs.
It is unclear whether Congress will complete its work Friday or
work through the weekend ahead in order to stick to plans to take
next week off for the Jewish new year holiday, Rosh Hashanah. And
without an increase in its budget, the Federal Emergency Management
Agency has said the disaster relief budget could run out as soon as
next week.
Accenture, Walgreens Expected To Strengthen Bottom Lines
Accenture's fiscal fourth-quarter report follows the company's
record earnings per share and revenue in the third quarter, when
market-share wins propelled revenue higher in all operating groups
and regions. Analysts surveyed by Thomson Reuters don't expect EPS
to trump that record Tuesday, but they do anticipate the bottom
line to strengthen after Accenture set upbeat revenue targets in
June.
Walgreen's fiscal third-quarter earnings are also expected to
rise. In the prior period, profit rose more than expected on
continuing climbing sales and better margins, anchored by benefits
from generic sales and higher margin front-of-store business.
Among other notable names reporting quarterly results next week,
Paychex Inc. (PAYX) is to report Tuesday, and Darden Restaurants
Inc. (DRI) and Mosaic Co. (MOS) are slated for Wednesday. Of them,
only Darden is expected to have weaker earnings.
Durable Goods, Final Statement On 2Q GDP
The Commerce Department on Wednesday releases August durable
goods orders, a gauge of the health of the country's manufacturing
sector. Demand for long-lasting manufactured goods bounced back 4%
in July, but a decline in a key measure of capital spending--orders
for nondefense capital goods excluding aircraft, which economists
use to gauge business spending on new equipment--signaled
underlying weakness in the U.S. economy.
A day later, the department will release its final figures for
the U.S. economy's benchmark indicator, gross domestic product.
Last month, GDP growth was revised down to 1% from 1.3% because of
recent disappointing economic data, though the revision met Wall
Street expectations.
The markets will get more information about the struggling
housing market next, as the August status of new home sales comes
Monday, followed by the S&P/Case-Schiller home price index
Tuesday and July pending home sales Thursday.
Friday will see the release of data on personal income
spending.
Solyndra To Request Asset Sales To Hire Lawyers Amid Probe
Embattled solar-panel maker Solyndra LLC will ask the
Wilmington, Del., bankruptcy court Tuesday for permission to
auction its assets and hire attorneys, including a former
Massachusetts governor, to represent it in ongoing investigations
into its $535 million government-backed loan deal.
Solyndra, which filed for Chapter 11 recently, is the target of
several federal probes, including congressional and criminal
investigations focused on whether the company misled the government
when it applied for the Department of Energy loan guarantee.
Greek Aid Talks Continue
Talks between Greece and its international creditors over a deal
for austerity measures in exchange for fresh aid are to continue
over the weekend in Washington. Next week, officials from the
European Union, the European Central Bank and the International
Monetary Fund--dubbed the troika--are expected to return to Athens
for face-to-face meetings with Greek officials. Greece is under
pressure from its European partners to tighten austerity measures
and cut its budget deficit after it appeared the country would
overshoot its deficit goals.
UAW, Ford To Enter Talks As Union Shifts Focus From Chrysler
The United Auto Workers union plans to begin serious
negotiations on financial matters with Ford Motor Co. (F) on
Monday, it told its members Thursday. The union decided to shift
its focus to securing a new collective bargaining agreement with
Ford after it broke off talks with Chrysler Group LLC Wednesday
because of an impasse over pay for entry-level workers and health
care costs. General Motors Co. (GM) reached a new four-year
contract last weekend and workers will begin voting to ratify the
agreement in the next few days.
UAW President Bob King will greet Ford officials and the UAW
negotiating team Friday, but advanced negotiations aren't expected
over the weekend, according to a letter distributed Thursday to
Ford workers.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com
--Marie Beaudette, Jeff Bennett and Mike Ramsey contributed to
this report.
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