Economists expect the August unemployment rate in the U.S. to
rise slightly, to 9.5%. That figure will be released next Friday, a
day after major retailers report on August sales and three days
after auto makers detail their results for the month.
Eagerly awaited clinical-trial results for heart drugs will be
presented at a cardiologists' meeting beginning Saturday.
Among companies reporting quarterly results next week are the
nation's two largest tax-preparation firms.
Increase Seen In August Unemployment Rate
The national unemployment rate is expected to rise to 9.5% in
August from 9.4% a month earlier, according to a survey of
economists. The rate fell unexpectedly in July from 9.5% in June,
though economists said that largely reflected a drop in the number
of people looking for work. Most experts believe the rate will
reach double digits before starting to fall as the economy
improves. The government report on August employment will be
released next Friday at 8:30 a.m. EDT.
Big Jump Likely In Aug New-Vehicle Sales
New-vehicle sales are expected to increase 18% in August from
July in the U.S. on the popular "Cash for Clunkers" government
program, but still remain down 6% from a year earlier, according to
Edmunds.com. Auto makers will report sales for this month on
Tuesday. Thanks to the strong results before the program ended this
week, the car-shopping Web site is projecting August U.S.
new-vehicle sales of about 1.17 million and a seasonally adjusted
annualized rate of slightly more than 13 million, the highest
figures by far this year.
August Retail Sales Likely To Top July
Little change is likely when major retailers report their August
same-store sales Thursday, though the figures are expected to
improve from July, when same-store sales fell 5.1%. The industry
has posted weaker year-over-year results since September. Last
August's 0.2% gain came just as the bottom started dropping out for
retailers.
Heart-Drug Study Results To Be Presented
Eagerly awaited clinical-trial results for heart drugs will be
presented at a five-day gathering of cardiologists in Barcelona
beginning Saturday.
In one study of about 25,000 patients, researchers tested
whether a higher-than-normal dose of blood thinner Plavix was any
better than the standard dose at preventing deaths, heart attacks
and strokes in some cardiovascular patients. Plavix is the second
best-selling drug in the world and is co-marketed by Bristol-Myers
Squibb Co. (BMY) and Sanofi-Aventis SA (SNY).
Separately, AstraZeneca PLC (AZN) will present full data for a
study comparing its experimental anti-clotting drug Brilinta with
Plavix. Astra said in May that Brilinta was superior to Plavix but
didn't provide full efficacy and safety data. The company plans to
submit the drug for regulatory approval later this year.
Both studies are to be presented Sunday at the European Society
of Cardiology annual meeting, and could shed light on the
competitive landscape for Eli Lilly & Co.'s (LLY) newly
launched blood thinner Effient.
Dip Seen In July Construction Spending
Construction spending likely fell in July, as it did in three
other months this year. That data will be released Tuesday, the
same day as the month's pending-home-sales index from the National
Association of Home Builders. The reading, which measures housing
contract activity and is designed to foreshadow existing home
sales, increased 3.6% in June to its highest point in two
years.
On Wednesday, the government reports on July factory orders and
issues a revised figure for second-quarter productivity. The
earlier report showed a 6.4% jump in productivity as workers hours
were cut faster than output. The Federal Reserve also issues
minutes of its August meeting Wednesday.
The Institute for Supply Management reports on manufacturing
Tuesday and on the service sector two days later. Reports on
regional manufacturing activity are due Monday from Chicago
purchasing managers and the Dallas Fed.
Tax-Prep Firms, Home Builder To Report
The nation's two largest tax-preparation companies, H&R
Block Inc. (HRB) and Jackson Hewitt Tax Service Inc. (JTX), will
post quarterly results next week. Both are expected to report
losses as they usually do in quarters following major tax-filing
deadlines. H&R reports Friday, a day after Jackson Hewitt.
Also posting results are video-game maker Take-Two Interactive
Software Inc. (TTWO), on Tuesday; home builder Hovnanian
Enterprises Inc. (HOV) and defense contractor SAIC Inc. (SAI), both
Wednesday; and Del Monte Foods Co. (DLM), on Thursday.
Unsolicited Robocalls To Be Illegal
Prerecorded commercial telemarketing calls, known as robocalls,
will be illegal starting Tuesday unless the telemarketer has
obtained permission in writing from those being called. The new
rule prohibits robocalls whether or not consumers previously have
done business with the seller. Penalties are up to $16,000 a
call.
President To Give Eulogy For Kennedy
President Barack Obama will deliver the eulogy Saturday at the
funeral for Sen. Edward Kennedy, D-Mass., who died this week, 15
months after being diagnosed with a brain tumor. Four former
presidents also will attend the service. After the Mass on
Saturday, Kennedy will be flown to Andrews Air Force Base, where a
motorcade will make a symbolic stop at the U.S. Capitol before his
burial at Arlington National Cemetery.
Obama To Release Nuclear Security Report
President Obama is scheduled to release Tuesday an unclassified
executive summary of a global nuclear security report to Congress
on the security of nuclear weapons and nuclear weapon material
outside the U.S.
Elections May Change Japan-US Relations
Japan will likely seek greater independence from the U.S., and
focus more on its ties with China and the rest of Asia, under new
leadership expected to take power after elections Sunday. Polls
show the center-left Democratic Party of Japan is expected to
trounce the ruling Liberal Democratic Party in lower-house
parliamentary elections. During its 50-year history, the LDP has
often followed Washington's lead in foreign policy. By contrast,
the DPJ says it wants closer ties and more trade agreements with
regional neighbors while it seeks a "more equal" relationship with
the U.S.
Farm Show To Focus On Prices, Fuel Law
U.S. farmers will gather next week in Decatur, Ill., for the
annual Farm Progress Show, an industry trade fair expected to be
dominated by falling commodity prices and their effect on incomes
amid worsening credit conditions in some parts of the sector. The
self-styled "Super Bowl of Agriculture" runs Tuesday through
Thursday. The looming renewable-fuel mandate also is likely to be
discussed.
Conferences
Among the significant conferences next week are the Lazard
Capital Markets MAGIC Retail & Apparel Conference from Sunday
to Tuesday in Las Vegas, Morgan Stanley Global Industrials
Conference on Tuesday in New York and Merrill Lynch Technology
Conference on Wednesday in San Francisco.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Peter Loftus, Doug Cameron and other Dow Jones Newswires staff
contributed to this report.)