The U.S. jobless rate, out next Friday, is expected to jump to
8.5% for March.
General Motors Corp. (GM) and Chrysler LLC, which have received
billions of dollars in government loans, are to report on their
progress in cutting costs and debt Tuesday.
In addition, President Obama heads overseas to attend the Group
of 20 summit in London and the North Atlantic Treaty Organization's
60th anniversary events in France and Germany.
March Jobless Rate Could Reach 8.5%
Economists are predicting another jump in the unemployment rate
for March, from 8.1% in February. This week, new U.S. claims for
state unemployment benefits rose, and total claims soared to a
record high of more than 5.5 million, showing the economy continues
to shed jobs at a rapid clip. The government's monthly jobs report
is due next Friday.
On Tuesday, the private Conference Board issues its March survey
of consumer confidence, which has been falling since November.
Also due that day is the S&P/Case-Shiller Home Price Index
for January, which tracks home prices in 20 major cities. The index
for December showed home prices continued their multiyear slide,
with prices close to late 2003 levels.
Another read on the real-estate market comes Wednesday, when the
National Association of Realtors issues its February index for
pending sales of previously owned homes. The index dropped 7.7% in
January from December.
The government reports on February construction spending
Wednesday and factory orders Thursday. The Institute for Supply
Management's survey of manufacturing activity is due Wednesday and
its report on the service sector Friday.
Regional manufacturing surveys are expected Monday from the
Dallas Fed and Tuesday from the Institute for Supply
Management-Chicago.
Among appearances by Federal Reserve officials: St. Louis Fed
President Jim Bullard on Monday in Frankfurt, Germany, and
Philadelphia Fed President Charles Plosser on Tuesday in
Chicago.
GM, Chrysler Reports To Treasury Due Tuesday
General Motors Corp. (GM) and Chrysler LLC are scheduled to
submit reports to the Treasury Department by Tuesday detailing on
how they have cut union and health-care costs while also reducing
debt. The Detroit auto makers are hoping to receive more federal
low-interest loans to keep their operations out of bankruptcy. GM
wants $16.6 billion, while Chrysler is seeking $5 billion.
More grim sales figures are expected when global auto makers
release March U.S. sales results Wednesday. Significant declines
are likely as the recession continues to keep people away from
showrooms. Analysts will be watching to see if steps to loosen
consumer credit restrictions are translating into car sales. Ford
Motor Co. (F) will launch another companywide buyout program
Wednesday as it tries to continue shaving costs.
Monsanto Results To Show Strength Of Seed Demand
Monsanto Co. (MON) will shed light on demand for seeds and
crop-protection products when it posts fiscal second-quarter
results Thursday amid signs that farmers are balking at higher
prices and seeking discounts after the sharp drop in commodity
prices.
While Monsanto remains bullish on long-term demand trends,
investors will look for any changes to its five-year growth
forecasts. Analysts expect per-share earnings, excluding items, of
$2.08, compared with a record $1.79 last year.
RIM Shares Up Before 4Q Report
Shares of Research in Motion Ltd. (RIMM) have climbed 14% this
month, and Goldman Sachs analysts said "we would be buyers of RIM"
before it reports fiscal fourth-quarter results Thursday. Wall
Street expects the Blackberry maker to post per-share earnings,
excluding items, of 84 cents on revenue of $3.4 billion. The
company said last month that new subscribers, attracted by its
touch-screen Storm and the high-speed Bold, will help it beat by
20% its projection of 2.9 million additions for the quarter ended
Feb. 28.
Obama To Attend G20 Summit, NATO Meeting
President Obama heads overseas next week for three high-profile
international events: the meeting of Group of 20 nations that kicks
off Wednesday evening in London, a NATO at the end of the week and
a European Union-U.S. summit in Prague on April 5.
He will sit down with Chinese President Hu Jintao and Russian
President Dmitry Medvedev at the G20 summit and also will meet U.K.
Prime Minister Gordon Brown, Queen Elizabeth II, Indian Prime
Minister Manmohan Singh and South Korean President Lee Myung-bak.
Also planned are a town hall-style meeting at a sports arena in
Strasbourg, France.
FDA Advisers Consider Diabetes Drugs
A panel of outside advisers to the Food and Drug Administration
will meet Wednesday and Thursday in suburban Washington to evaluate
proposed diabetes drugs saxagliptin from Bristol-Myers Squibb Co.
(BMY) and AstraZeneca and liraglutide from Novo Nordisk (NVO).
Some analysts are skeptical that saxagliptin will get the
thumbs-up because it was associated with skin toxicities in monkey
studies. If it is approved, it would compete directly with a
similar drug from Merck & Co. (MRK) called Januvia. Novo's
liraglutide, which is in a different class of drugs, also could
face hurdles because it has been associated with a change in heart
rates and pancreatic disease in studies. Liraglutide would compete
directly with Byetta, which is co-marketed by Eli Lilly & Co.
(LLY) and Amylin Pharmaceuticals Inc. (AMLN).
Those companies together with Alkermes Inc. (ALKS) are
developing a once-weekly formulation of Byetta. The panel
discussion next week also could have implications for once-weekly
Byetta. The FDA isn't required to follow its advisory panels'
recommendations, but it often does.
Crestor Study Results Due At Meeting
Thousands of heart doctors will descend on Orlando, Fla., from
Saturday through Tuesday for the 58th annual scientific session of
the American College of Cardiology. This year's meeting is light on
high-profile clinical studies that could substantially affect sales
performance of top drugs and medical devices - another sign of
research pipeline difficulties among drug makers.
AstraZeneca PLC (AZN) will report on studies showing whether its
Crestor cholesterol-lowering drug can also prevent blood clots and
help kidney-disease patients. Convention-goers will also hear a
report on a study sponsored by device-maker Boston Scientific Corp.
(BSX) that compares cost and quality of life of stent procedures
with bypass surgery.
Cost and comparative effectiveness of various heart treatments
are likely to be in greater focus because the federal government
has launched a $1.1 billion program to fund such research as a way
to improve health-care quality and to control costs.
Europe Springs Forward; 'Earth Hour' Sat.
Most European countries move their clocks ahead one hour Sunday
to go on daylight saving time.
On Saturday evening, the skylines of Atlanta, Boston, Chicago,
Dallas, Houston, Las Vegas, Los Angeles, Miami, Nashville, New
York, San Francisco and Washington, D.C., are expected to go dark
at 8:30 p.m. local time to mark "Earth Hour." Organized by World
Wildlife Fund to express concern about climate change, "Earth Hour"
participants in the U.S. are estimated at more than 100 cities and
towns. Worldwide, more than 1,500 cities, towns and villages in 80
countries are expected to reduce their power use for one hour.
Wireless Trade Show Starts Wednesday
The wireless industry will convene Wednesday in Las Vegas for
the CTIA Wireless trade show. Heavy hitters, such as Verizon
Communications Inc. (VZ), will be pushing for continued investment,
while the focus will be on different capabilities and programs
rather than the handsets themselves. Research in Motion, for
example, is expected to unveil more details about its App
Store-like Blackberry App World. The three-day show is expected to
be slower and lighter than in years past because of the weaker
economy.
Cable Operators Meet In Washington
The Cable Show, an industry conference sponsored by the National
Cable & Telecommunications Association, will run Wednesday
through Friday in Washington, D.C. The show will feature speeches
by such industry leaders as Time Warner Inc. (TWX) Chief Executive
Jeff Bewkes and News Corp. (NWS) Chief Executive Rupert Murdoch.
Key members of Congress, representatives of the Obama
Administration and Washington Mayor Adrian Fenty also will attend
the U.S. cable industry's premiere event.
Conferences
Among the other significant conferences next week are the Telsey
Advisory Group Consumer Conference from Tuesday through Thursday in
New York, BB&T Capital Markets Manufacturing & Materials
Conference on Wednesday and Thursday in New York, Citi Biotech Day
on Wednesday in New York and Wealth Forum 2009: The Rules Have
Changed on Thursday in New York.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
kathy.shwiff@dowjones.com
(Jeff Bennett, Doug Cameron, Roger Cheng, Peter Loftus, Nat
Worden and other Dow Jones Newswires staff contributed to this
report.)