Wal-Mart Stores Inc. (WMT), Home Depot Inc. (HD) and
Hewlett-Packard Co. (HPQ) are among the companies reporting
quarterly results next week.
Economic reports due next week will detail April consumer and
wholesale inflation as well as housing starts last month.
Congress will hold hearings on the recent stock-market plunge,
the oil spill in the Gulf and problems at Toyota Motor Corp.
(TM).
Wal-Mart Seen Posting Same-Store Sales Decline
Wal-Mart and other retailers will report fiscal first-quarter
results next week. The world's largest retailer on Tuesday is
expected to post improved results from a year earlier, with
earnings of 85 cents a share and revenue of $98.45 billion. But it
is projected to report a 0.4% decline in same-store sales following
three straight quarters of softer sales in the U.S.
Department-store chains J.C. Penney Co. (JCP), Macy's Inc. (M)
and Kohl's Corp. (KSS) this week said they are seeing a pickup in
demand from customers, but not a return to robust buying. Also
scheduled to report next week are Abercrombie & Fitch Co.
(ANF), Saks Inc. (SKS) and TJX Cos. (TJX) on Tuesday; Polo Ralph
Lauren Corp. (RL) and Limited Brands Inc. (LTD) on Wednesday; and
Target Corp. (TGT), Gap Inc. (GPS) and Sears Holding Corp. (SHLD)
on Thursday.
Big-box home-improvement retailer Home Depot and its main rival,
Lowe's Cos. (LOW), will post results Tuesday and Monday,
respectively. Home Depot's results are likely to top those of a
year earlier but Lowe's earnings are seen slightly lower, according
to a poll of analysts by Thomson Reuters. Demand is expected to
improve as the housing market recovers and interest in larger
remodeling projects grows.
H-P, Dell Both Seen Posting Better Results
Hewlett-Packard, which last month bid $1.2 billion for
smartphone maker Palm Inc. (PALM), is expected to post sharply
higher earnings and see top-line growth in its fiscal second
quarter. HP, the world's largest personal-computer maker by volume,
reports Tuesday, and its rival Dell Inc. (DELL), which also is
adding smartphones to its product lineup, reports Thursday. Dell
has been hurt by tougher competition and narrower margins in recent
quarters as it evolves from a commodity-hardware manufacturer into
a full-service, global enterprise-technology concern.
April Inflation, Housing Data To Be Detailed
The government will issue the April Producer Price Index, which
measures wholesale inflation, and Consumer Price Index, which
measures changes in retail prices, on Tuesday and Wednesday,
respectively. There have been few signs of inflation during the
recession.
Also due Tuesday is a report on April housing starts. Home
construction climbed for a third straight month in March. On
Monday, the National Association of Home Builders will release its
May housing market index. The confidence index climbed to the
highest level in seven months in April.
The Federal Reserve will release the minutes from its latest
rate-setting committee meeting Wednesday. Reports on regional
manufacturing activities are due Monday from the New York Fed and
Thursday from the Philadelphia Fed. The nonprofit Conference Board
also will release its April index of leading indicators
Thursday.
Tribune Takes Restructuring Plan To Court
Tribune Co. (TRBCQ) on Thursday will ask the Wilmington, Del.,
bankruptcy court to approve an outline of its Chapter 11
restructuring plan, which will allow the media giant to send the
plan to creditors for a vote. The plan is based on a settlement
stemming from the company's 2007 leveraged buyout deal, which
saddled the company with billions in debt. If approved, the pact
will shield real-estate mogul Sam Zell, the architect of the LBO,
J.P. Morgan Chase & Co. (JPM), Citigroup Inc. (C) and others
involved in the deal from lawsuits alleging fraud, mismanagement
and profiteering stemming from the transaction.
Labor Members Plan Washington March Monday
Thousands of labor union members are expected to march Monday in
Washington in an event labeled "Showdown on K Street." They plan to
march along K Street, where many lobbyists have their offices, to
Bank of America Corp.'s (BAC) office next to the Treasury
Department, then to the Capitol. The event is meant "to draw a
direct line connecting unaccountable corporations, their lobbyists
and the members of Congress who do their bidding." Last month,
several thousand demonstrators marched through New York's financial
district to highlight profits posted by big banks during the
recession.
Hearing Wednesday On Movie Futures Contracts Plan
The Commodity Futures Trading Commission will hold a public
hearing Wednesday to examine the growing controversy surrounding a
plan by two firms to offer futures contracts tied to movie box
office receipts. Attending will be executives from the Veriana
Networks-owned Trend Exchange and Cantor Exchange, which is owned
by Wall Street firm Cantor Fitzgerald Securities Corp. Both
companies seek to list movie futures contracts but face opposition
from numerous entertainment industry trade groups and many members
of Congress who fear the products could lead to manipulation and
could harm the U.S. film industry. Representatives from the
entertainment industry have also been invited.
SEC, CFTC Leaders Testify On Stock Market Drop
Securities and Exchange Commission Chairman Mary Schapiro and
Commodity Futures Trading Commission Chairman Gary Gensler will
make their second appearance in as many weeks before Congress to
discuss their findings on the May 6 stock market plunge. Schapiro
and Gensler are slated to appear Thursday before the Senate Banking
Committee's Subcommittee on Securities, Insurance and Investment.
The two officials testified Tuesday before a House panel that they
haven't pinpointed a single cause for the baffling stock dive, when
the Dow Jones Industrial Average lost nearly 1,000 points before
staging a partial recovery.
House Panel Hearing On Oil Spill Set For Wed
A U.S. House committee has scheduled a hearing Wednesday on the
massive oil spill in the Gulf of Mexico resulting from an explosion
on an offshore drilling rig last month. The White House this week
said it will ask Congress to increase the tax on U.S.-produced oil
by 1 cent a barrel as part of legislation it unveiled to collect
more damages from companies responsible for oil spills. BP PLC (BP,
BP.LN) was expected Friday to deploy its "top hat" device to
contain the large oil leak a mile down in the Gulf.
House Panel To Review Response To Toyota Problems
A U.S. House committee will examine issues related to the Toyota
safety recalls Thursday. The hearing, before the House Energy and
Commerce Committee's oversight panel, was originally scheduled last
week. It will examine how Toyota and federal auto-safety regulators
responded to reported incidents of Toyota vehicles that accelerated
beyond the driver's control.
British Airways Prepares For Cabin Crew Strike
British Airways PLC (BAY.LN) has said it plans to fly more
passengers each day during the first in a new wave of strikes by
cabin crew next week. During the first five days of strikes from
Tuesday to May 22, the airline will fly 60% of its longhaul
schedule at London's Heathrow Airport and 50% of its shorthaul
schedule. It expects to fly more than 60,000 customers every day
compared with 51,000 a day on average during the previous
industrial action before the Easter holiday.
Obamas' Second State Dinner Honors Mexican Leader
Mexican President Felipe Calderon will visit Washington next
week and will be the guest of the Obama administration's second
state dinner Wednesday at the White House. Calderon also will speak
Wednesday at the U.S. Chamber of Commerce and Thursday to a joint
session of Congress. The two countries have been working to combat
violent drug cartels along the U.S.-Mexico border.
Fraud Trial Against Four Banks To Resume In Italy
A landmark trial against four major German, Swiss and U.S. banks
accused of fraudulently selling derivatives on a EUR1.68 billion
bond is expected to resume Thursday in Milan, Italy. The case was
adjourned early this month so a new judge could take over. Deutsche
Bank AG (DB), UBS AG (UBS), J.P. Morgan Chase & Co. (JPM) and
Depfa Bank--the Irish unit of Germany's Hypo Real Estate Holding
AG--face aggravated fraud charges of reaping some EUR100 million in
illicit profits from the irregular sale of derivatives. The banks
have all denied any wrongdoing. Eleven bank employees and two
former Milan city employees face the same charges as the banks. The
derivatives were linked to a 30-year bond worth EUR1.68 billion
issued by the City of Milan in 2005.
Conferences
Among the significant conferences next week are the JPMorgan
Technology, Media and Telecom Conference from Saturday through
Wednesday in Boston, Credit Suisse Group Basic Materials Conference
on Tuesday and Wednesday in Boston, and Robert W. Baird Growth
Stock Conference from Tuesday through Thursday in Chicago.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Dow Jones Newswires staff contributed to this article.)
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