H-P Results May Shed Light On Corporate Spending
Investors will be looking for more data on business spending when Hewlett-Packard reports fiscal fourth-quarter results Monday. Many also are interested to hear what the company’s new chief executive, Leo Apotheker, has to say.
Competitor Dell Inc. on Thursday posted one of its strongest quarters since founder Michael Dell returned as chief executive in 2007, with a 19% revenue increase and its profit more than doubling. Dell said it benefited from lower component prices and renewed business spending. But networking giant Cisco Systems Inc. last week gave a downbeat forecast, citing sharp drops in orders from cable operators for products such as set-top boxes and from state governments as well as softness in its business in Europe.
Also reporting Monday is Brocade Communications Systems Inc., which makes switches and software used to connect corporate servers and data-storage systems and had predicted a strong finish to its fiscal year.
Retailers, Jewelers, Food Firms To Post Results
J. Crew Group Inc. and Guess? Inc. are among the retailers reporting fiscal third-quarter results next week. Both post results Tuesday. This week, several apparel retailers reported big profit increases from a year earlier, when consumers were keeping tight reins on their spending. Strong results for Saks Inc. and Nordstrom Inc. added to recent evidence of a rebound in the luxury sector. Next week, jewelry retailers Tiffany & Co. reports Wednesday, a day after Zale Corp., which has been struggling, and Kay parent Signet Jewelers Ltd.
Also reporting next week are Campbell Soup Co., which last week cut expectations as soup sales have stayed weak in the U.S. despite its efforts to draw consumers with more promotions. Campbell will post results Tuesday, a day after meat processor Tyson Foods Inc.
October Home Sales, 3Q GDP Data To Be Released
October sales of existing homes likely edged lower from a month earlier while new homes rose, according to economists surveyed by Dow Jones Newswires. Details on existing-home sales will be released Tuesday, as is the September reading of the Case-Shiller home-price indexes, while new-home sales are due a day later. Also Tuesday, the government will issue its second estimate of third-quarter gross domestic product. Economists expect the figure to be revised to 2.4% growth from the first estimate of 2%.
Being released Wednesday is data on October personal income and spending as well as sales of durable goods, those expected to last three years or more. Minutes from the latest meeting of a key Federal Reserve panel will be out Tuesday, and the final reading for the Reuters/University of Michigan consumer sentiment index for November is due Wednesday. Reports on regional manufacturing activity are expected Monday from the Chicago Fed, Tuesday from the Richmond Fed and Wednesday from the Kansas City Fed.
Financial Oversight Panel Set To Meet Tuesday
The Financial Stability Oversight Council, created by the Dodd-Frank financial overhaul law, is scheduled to meet Tuesday. A group of House Democrats this week urged the council, chaired by Treasury Secretary Timothy Geithner, to conduct a new round of stress tests on mortgage lenders as the industry grapples with irregularities in loan documents. The panel, formed to watch over the $700 billion federal bank bailout, has said in a report the foreclosure document problems “may have concealed much deeper problems in the mortgage market that could potentially threaten financial stability.”
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