By Nathalie Tadena
In a light earnings week ahead, supermarket giant Kroger Co.
(KR), high-end apparel designer Michael Kors Holdings Ltd. (KORS)
and pork producer Smithfield Foods Inc. (SFD) are among the
companies expected to release their latest quarterly results.
Meanwhile, a trio of price reports from the U.S. Labor
Department next week will provide economists with insight on
inflation.
On Wednesday, Eastman Kodak Co. (EKDKQ) will ask the bankruptcy
court to reject an ownership claim from Apple Inc. (AAPL) on
certain patents Kodak may try to sell in its bid to raise funds to
exit Chapter 11 protection.
Quarterly Earnings Due From Kroger, Kors
Analysts polled by Thomson Reuters project Kroger to post growth
in its top and bottom lines when the nation's largest grocery
retailer releases its first-quarter results on Thursday. While
other supermarkets have complained of losing customer
sales--because of higher gasoline prices, unemployment and a
generally sluggish economic recovery--it appears they might
actually be losing them to Kroger. In March, Kroger reported strong
fourth-quarter sales and also issued an upbeat outlook for the
year, despite persistent economic headwinds.
Meanwhile, Michael Kors is expected to release results on
Tuesday. In March, the fashion house raised its fourth-quarter
guidance amid strong demand for luxury goods. However, the company
had also warned that difficulties in its transition to a new
distribution facility have caused delays to wholesale and retail
customers.
Smithfield, the largest U.S. pork producer by volume, will
report on Thursday. Analysts expect Smithfield to post another
quarter of weaker earnings as the company continues to contend with
higher costs, though sales are expected to improve. The company has
said it has taken positions in futures markets to control its costs
for feed and, to a lesser extent, revenue from sales.
Convenience-store operator Casey's General Stores Inc. (CASY)
and financial software company FactSet Research Systems Inc. (FDS)
are also due to report next week.
Reports Due on Import, Producer and Consumer Prices
The Labor Department will release May data for import prices on
Tuesday. The cost of goods imported into the U.S. fell 0.5% in
April, the first decline since October, as fuel prices
retreated.
Meanwhile, data on producer prices and consumer prices will be
released Wednesday and Thursday, respectively.
The Producer Price Index, which measures the price of goods at
the wholesale level, showed U.S. wholesale prices fell 0.2% in
April as energy costs declined.
The Consumer Price Index, which measures the price of a fixed
market basket of goods and services purchased by consumers, was
unchanged in April from the prior month.
Kodak Seeks Patent Ruling
On Wednesday, Eastman Kodak will ask the New York bankruptcy
court to reject an ownership claim from Apple Inc. (AAPL) on
certain patents Kodak may try to sell in its bid to raise funds to
exit Chapter 11 protection.
Apple, however, has balked at Kodak's attempt to put the matter
before a bankruptcy judge, saying a district court is the
appropriate venue for the matter.
Kodak has accused Apple of trying to thwart its patent sale
process, which would serve as the foundation for the company's
restructuring plan. It is trying to get a bankruptcy judge to
declare Apple has no interest in 10 of its patents.
Starbucks K-Cup Packs to Hit Cafes Next Week
Starbucks Corp. (SBUX) will start selling single-serve K-cup
coffee pods for Green Mountain Coffee Roasters Inc.'s (GMCR) Keurig
brewers in some stores on Tuesday.
Starbucks began selling its branded K-cups in such retailers as
grocery stores about six months ago, and has said it has seen
"robust" sales.
For Starbucks, the move to K-cups is part of its overall
strategy of becoming a broader consumer products company rather
than relying so heavily on its cafe sales. Starbucks is also coming
out with its own single-serve espresso brewer called Verismo by the
end of the year.
For Green Mountain, the increased retail presence could give its
sales a boost during a typically slower season for coffee. Plus,
the further backing by Starbucks could help Green Mountain's
struggling stock.
Financial Stability Oversight Council Meeting Set for Monday
The next meeting of the Financial Stability Oversight Council is
scheduled for Monday, the Treasury Department said.
Treasury Secretary Tim Geithner will lead the meeting, which is
closed to the public.
Known as FSOC, the council comprises top financial regulators
and was created by the Dodd-Frank financial-overhaul law. The
council includes the heads of the Treasury, Federal Reserve,
Securities & Exchange Commission, Commodity Futures Trading
Commission and other agencies, and was formed to help coordinate
regulatory action and head off another financial crisis.
Conferences
Among the significant conferences next week are Macquarie
Financials Conference on Monday and Tuesday in New York; Morgan
Stanley Financials Conference Tuesday and Wednesday in New York;
REITWeek: NAREIT's Investor Forum Monday through Wednesday in New
York; William Blair and Co LLC Growth Stock Conference Tuesday
through Thursday in Chicago and Deutsche Bank Global Industrials
and Basic Materials Conference Wednesday and Thursday in
Chicago.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
--Marie Beaudette, Annie Gasparro, Eric Morath and Dow Jones
Newswires staff contributed to this report.