Alcoa Inc.'s (AA) report Wednesday marks the unofficial start of
third-quarter earnings season.
Major retailers, detailing September same-store sales Thursday,
are expected to show growth, albeit from a very weak month a year
earlier.
Bank of America Corp. (BAC) directors' committee is expected to
start work next week on finding a replacement for Chief Executive
Kenneth Lewis, who will retire at the end of the year.
Alcoa, PepsiCo, Yum To Report 3Q Results
Aluminum giant Alcoa, the first blue-chip company to report
third-quarter results, is expected to post its fourth quarterly
loss in a row Wednesday. Still, recent increases in aluminum prices
give investors some hope they will find some positive news in the
report.
PepsiCo Inc. (PEP), which reports Thursday, is seen posting
slightly better results. The beverage and snack giant, which relies
on the U.S. for more than half its revenue, expects cost savings
from its $7.8 billion purchase of its two largest bottlers.
Meanwhile, Yum Brands Inc. (YUM), which reports Tuesday, is likely
to see flat results. The operator of the Taco Bell, Pizza Hut and
KFC chains has been leaning on its international operations as
growth remains sluggish in the U.S., but now even the formerly
fast-growing China market is a question mark.
Also reporting Wednesday are warehouse retailer Costco Wholesale
Corp. (COST) and Monsanto Co. (MON), the world's largest seed
company by revenue. Fertilizer maker Mosaic Co. (MOS) posts results
Monday and hotel chain Marriott International Inc. (MAR) on
Thursday.
Retailers To Report September Same-Store Sales
Retailers will report September same-store sales Thursday, and
the figures should benefit from an easy comparison with last year
and a later Labor Day holiday this year, analysts said. Retailers
posted a 2.9% sales decline in August as consumers remained
thrifty, but a growing number of shoppers turned up at midpriced
stores. Of the 30 retailers tracked by Thomson Reuters, 46%
delivered better-than-expected results in August, compared with 38%
in July.
U.S. Trade Deficit Seen Wider In August
The August U.S. trade deficit figure, due to be issued next
Friday, is expected to widen slightly from July. It has been
growing since June. The Institute for Supply Management releases
its report on the services sector Monday; its report on
manufacturing this week showed expansion was lower than expected.
The government reports on August consumer credit Wednesday and
wholesale inventories Thursday.
Among appearances by Federal Reserve officials: New York Fed
President William Dudley speaks Monday in New York; Dallas Fed
President Richard Fisher speaks Tuesday in San Francisco; Kansas
City Fed President Thomas Hoenig speaks Tuesday in Denver; and
Atlanta Fed President Dennis Lockhart speaks Thursday in
Atlanta.
Bank Of America Panel Starts Search For CEO
A committee of Bank of America directors is expected to hire a
search firm next week to help find a replacement for Chief
Executive Kenneth Lewis, who surprised many this week with his
decision to retire. Three of the six directors on the panel are
former directors from FleetBoston Financial Group and close to BofA
consumer head Brian Moynihan, considered a possible choice for the
top job.
G7 Finance Ministers, Central Bankers Meet
Finance ministers, including U.S. Treasury Secretary Timothy
Geithner, and central bankers of the Group of Seven leading
industrial nations are meeting Saturday in Istanbul before the
annual meetings of the International Monetary Fund and World Bank.
The weak dollar is likely to be a focus of concern after IMF
figures this week showed its share of total reserves has fallen to
the lowest level since 1995 and the head of the World Bank warned
the dollar's status as the world's leading reserve currency
shouldn't be taken for granted.
Senate Panel To Vote On Health-Care Reform
A pivotal vote on health-care reform legislation is expected
next week in the Senate Finance Committee. Panel members ended
debate this week after voting on several amendments to a bill
proposed by Chairman Max Baucus, D-Mont. Democratic leaders hope to
bring health-overhaul legislation before the full Senate the week
of Oct. 12.
House Panel To Weigh Credit-Card Rules Date
A House panel plans to meet next week on legislation moving up
the effective date of new credit-card rules as lawmakers hope to
press the issue on Capitol Hill. The House Financial Services
Committee, chaired by Rep. Barney Frank, D-Mass., has scheduled a
hearing Thursday on a measure to put credit-card rules passed
earlier this year into effect Dec. 1. They were to take effect in
February.
China Markets Closed For 60th Anniversary Week
Markets, banks, businesses and government offices will be closed
in China through Thursday for the country's 60th anniversary
celebrations. The weeklong National Day celebration began Thursday,
with President Hu Jintao reviewing the troops on Tiananmen Square
at the start of a giant 2 1/2-hour parade.
Final Results Of Afghan Presidential Vote Likely
The final tally in Afghanistan's contested presidential election
is expected to come as soon as next week, U.N. Secretary-General
Ban Ki-moon said. Amid widespread allegations the Aug. 20 poll was
rigged in favor of incumbent President Hamid Karzai, Ban said he
wouldn't recognize a winner until the official tally was in and
election watchdogs had given their view. Based on preliminary
results, Karzai has 55% of the votes declared valid, double the
tally of rival Abdullah Abdullah.
Conferences
Among the significant conferences next week are the Brean
Murray, Carret & Co. Consumer 1x1 Conference on Monday in New
York; JMP Securities Healthcare Focus Conference on Monday and
Tuesday in New York; William Blair & Company Emerging Growth
Stock Conference on Monday and Tuesday in New York; and Johnson
Rice Energy Conference from Monday through Wednesday in New
Orleans.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Dow Jones Newswires staff contributed to this report.)