As usual, we turn to Dow Jones’ Kathy Shwiff for a look at the week ahead for U.S. financial markets:
Revenue Likely To Be Flat At Disney, Viacom
Disney, the largest U.S. media company by market value, is seen reporting lower fiscal first-quarter earnings from a year earlier on flat revenue Tuesday. Its film division has been struggling and discounts continue to hurt revenue at its theme parks though advertising reportedly has picked up at ESPN. Meanwhile, media giant Viacom Inc., which reports Thursday, is likely to post a big increase in profit on nearly flat revenue. Its cable ad sales likely declined on lower upfront prices. Coca-Cola, PepsiCo To Post Improved 4Q Results
Soft-drink companies Coca-Cola and PepsiCo both are expected to post better fourth-quarter results from a year earlier when they report Tuesday and Thursday, respectively. Coke has been cutting costs and developing high-end products. Pepsi also plans to lower costs by acquiring two of its key bottlers. The drink and snack maker has seen declining revenue and profits in its North American beverage division as cash-strapped consumers trade down.
Exchanges May Detail New Clearing Ventures
A handful of major exchange operators will report fourth-quarter results next week, with Nasdaq OMX Group and NYSE Euronext lining up Monday and Tuesday, respectively. Though general trading activity remains under pressure, investors will be looking for updates on new ventures in clearing and any read on the state of regulatory overhaul in Washington, D.C., where regulators are scrutinizing a raft of proposals that could drive more trading onto exchange platforms–or limit major customers’ business. Derivatives-focused IntercontinentalExchange Inc. reports Wednesday along with Canadian market operator TMX Group Inc.
Uptick In January Retail Sales Expected
Retail sales likely grew in January after turning negative in December after two months of gains; the figures are due Thursday. This week, major retailers reported same-store sales rose a higher-than-expected 3.3% last month, according to Thomson Reuters.
On Wednesday, the government will detail the December trade deficit, which is forecast to narrow after widening in November. The nonprofit Conference Board issues its January employment trends index Monday, and the government reports on December wholesale trade inventories Tuesday and December business inventories Thursday.
Among appearances by Federal Reserve officials: Philadelphia Fed President Charles Plosser speaks Wednesday in Philadelphia.
Group Of Seven Finance Ministers Meeting This Weekend
Treasury Secretary Timothy Geithner is meeting with finance ministers and central bankers from the seven largest industrialized countries this Friday and Saturday in Canada. He is expected to discuss a U.S. proposal to limit commercial banks’ trading activities in separate meetings with Japanese Finance Minister Naoto Kan and U.K. Chancellor of the Exchequer Alistair Darling. The Group of Seven policy makers also are likely to talk about their role in a changing world where global growth is increasingly driven by key emerging markets.
Many Companies Buy First Super Bowl Ads
Viewers who stay glued to the television during breaks in Super Bowl action this Sunday will see commercials by several first-time advertisers, including Time Warner cable channel TruTV, videogame-maker Electronic Arts, Sprint Nextel’s Boost Mobile prepaid wireless service and Kia Motors. Mobile pay-TV firm Flo TV, information provider KGB and vacation rental service HomeAway.com also are forking over $2.5 million to $2.9 million for 30 seconds of air time. In past years, buying Super Bowl ads helped catapult companies such as online brokerage E*Trade Financial, Internet job board Monster.com and video site Hulu into the public eye.
Obama To Create Fiscal Commission
President Barack Obama will issue an executive order creating a new fiscal commission next week. The panel will be charged with recommending ways to bring down the U.S.’s record deficit, currently projected to total $8.5 trillion during the next decade. The group will aim to bring the deficit down to about 3% of the economy. The Senate recently defeated a proposal to create a similar commission, which some say would have been more effective than one created by the president.
Senate May Vote On Job-Creation Package
Majority Leader Harry Reid (D., Nev.) hopes the Senate will approve the first part of a job-creation package next week. A senior Democratic leadership aide said an initial package could include a job-creation tax credit, extension of unemployment insurance benefits and federal health insurance subsidies for jobless people, tax relief for small businesses investing in their companies and tax-friendly bonds to help state and local governments fund infrastructure projects. The plan could also create a new entity to promote exports, efforts to boost lending to small businesses by the federal government and provide capital to regional and community banks so they could increase loans to small businesses.
House Panel Hearing On Fed Liquidity Programs
Lawmakers have scheduled a hearing Wednesday before the House Financial Services Committee on various Federal Reserve programs put in place during the past few years to boost liquidity in the financial system. The gathering will come a year to the day after the panel held a similar hearing, which was attended by Fed Chairman Ben Bernanke.
Google Executive To Testify About China In House
The House Foreign Affairs Committee is scheduled to hear testimony Wednesday from a senior Google executive on the Internet search engine’s disputes with China. Deputy General Counsel Nicole Wong is expected to discuss Google’s recent decision to stop cooperating with China’s Internet censorship efforts after it said it suffered a sweeping cyberattack that originated in that country.
Fall Collections On Display At NY Fashion Week
Mercedes-Benz New York Fashion Week, which opens Thursday and runs through Feb. 18, will highlight designers’ fall collections. Shows will feature clothes designed by Americans Diane von Furstenberg, Alexander Wang and Calvin Klein as well as Jeremy Scott of London.
‘Green’ Vehicles To Launch At Chicago Auto Show
The Chicago Auto Show, which opens Friday and runs through Feb. 21 and is the oldest in the world at 102 years, will feature the launches of Ford Motor’s redesigned 2011 Ford Edge crossover utility vehicle and a pure electric version of its Transit Connect commercial van, Kia Motors’ Ray plug-in hybrid vehicle and a concept version of the next-generation Honda Motor Odyssey minivan among others. More than 1,000 vehicles will be on display in 1.2 million square feet.
Conferences
Among the significant conferences next week are the Biotechnology Industry Organization CEO & Investor Conference on Monday and Tuesday in New York; Deutsche Bank Securities Small and Mid Cap Conference from Monday through Wednesday in Naples, Fla.; Thomas Weisel Technology & Telecom Conference from Monday through Wednesday in San Francisco; UBS Global Healthcare Services Conference on Monday through Wednesday in New York; Credit Suisse Financial Services Conference on Wednesday and Thursday in Miami; and BB&T Capital Markets Transportation Services Conference on Wednesday and Thursday in Coral Gables, Fla.
Happy Super Bowling…and if you are headed to the G-7 meeting in Nunavut (or snowed-in in the Mid Atlantic), stay warm.
Oh, and please disregard all of the Super Bowl/stock market baloney. The outcome is just as meaningful to the market as any other arbitrarily important sporting event.
Except the Puppy Bowl where cuteness always wins!






