Skip navigation
Newswire

What to Watch in The Day Ahead; Friday, July 25

(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) Xerox's second-quarter profit and revenue may fall short of Wall Street estimates. The company, which has been diversifying away from its printers and copiers business to focus on services, had cut its full-year profit forecast as business related to the U.S. government healthcare sector slowed. Analysts say the company may have lost healthcare contracts in Nevada and Texas this quarter. However, analysts also expect the company to benefit from a contract win in New York, acquisitions and cost cutting measures. AbbVie expected to report flat revenue as drugs facing patent expiration offset gains for blockbuster arthritis treatment Humira. Investors will be focused on the progress of Abbvie's experimental drugs, including treatments for hepatitis C, and on details of how AbbVie will integrate Shire and its array of lucrative treatments for rare diseases. Credit rating agency Moody's is expected to report a second-quarter profit, helped by strong growth at its analytics unit. The company's bond rating, which forms the bulk of its revenue, is expected to post gains. The global bond markets have picked up amid higher demand for pension funds, dovish Fed policy and concerns among investors about long-term economic growth. Moody's acquired loan origination software provider WebEquity Solutions in June to improve its risk management services to financial institutions. New orders for long-lasting goods manufactured in the United States likely rebounded in June, after unexpectedly falling in May. The Commerce Department is expected to report that durable goods orders rose 0.5 percent in June. Orders fell 0.9 percent in May held down by a drop in demand for transportation, machinery, computers and defense capital goods. (0830/1230) They are also expected to release their revised building permits for June. Statoil's second-quarter operating earnings could rise from a year earlier, while EBIT could fall on big gas price falls and lower volumes. Production has been down, partly due to asset disposals but cost saving measures is taking effect and will boost figures. Lear, one of the largest auto parts makers in the world, is expected to release their second-quarter results. General Motors, Ford and BMW are its biggest customers. Lear's revenue is expected to rise in North America, Europe and Africa, and Asia. Investors will be looking for an update on the full-year forecast. Medical device maker Covidien Plc is expected to post third-quarter results before the bell. Fire-grilled chicken restaurant chain El Pollo Loco is expected to debut, raising up to $107.1 million at the upper end of its expected price range of $13-$15 per share. The company is expected to be valued at up to $537.9 million at the IPO price. The National Institute of Statistics and Geography is scheduled to release its Mexican trade balance data for June. (0900/1300) (Compiled By Nandi Kaul; Editing by Don Sebastian)