Earnings from the retail segment will continue next week, with
results due from giants Wal-Mart Stores Inc. (WMT) and Target Corp.
(TGT).
Social networking giant Facebook Inc. will begin trading Friday,
in a highly anticipated deal that would make Facebook the most
valuable U.S. technology company at the time of an initial public
offering.
The National Association of Home Builders will release its May
housing market index on Tuesday, while the U.S. government will
release housing starts data for April on Wednesday, providing more
information about the housing sector's sluggish recovery.
Quarterly Earnings Due From Wal-Mart, Retailers
A parade of retailers will report their latest quarterly results
next week, including Wal-Mart, Target, Saks Inc. (SKS), Gap Inc.
(GPS) and J.C. Penny Co. (JCP).
Analysts polled by Thomson Reuters expect Wal-Mart, Target and
Saks to report single-digit profit gains on a percentage basis. Gap
has already issued an upbeat fiscal first-quarter earnings forecast
and has said its spring products continued to perform well across
all brands.
Meanwhile, Penney is expected to swing to a first-quarter loss
as the department store operator continues to revamp its
operations. Penney is in the midst of trying to reinvent itself
under new Chief Executive Ron Johnson, who came to the company from
Apple Inc. (AAPL), going from a very promotional department store
to one that relies largely on single prices and offering numerous
"stores within stores."
Facebook To Debut Next Week
Social networking site Facebook is expected to begin trading on
the Nasdaq next Friday under the symbol "FB." The company last week
set a price range for its shares at $28 to $35 a piece, targeting a
valuation as rich as $96 billion that would top rival Google Inc.'s
(GOOG) 2004 IPO. Google holds the record for the largest U.S.
Internet IPO by raising $1.9 billion at a valuation of $23
billion.
Facebook executives have been pitching the company to big
investors in an IPO roadshow since Monday.
Wall Street analysts have been overwhelmingly bullish in their
early analysis of Facebook. However as questions about the
company's prospects linger ahead of its public debut, Facebook
revealed in a regulatory filing Wednesday that ad revenue isn't
keeping up with user growth because it has limited ads on its
mobile site.
Housing Data, Consumer Price Report Due
The National Association of Home Builders will release its May
housing market index on Tuesday. U.S. home builders' confidence in
the housing market slipped in April for the first time in seven
months, as consumers didn't go ahead with purchases despite having
shown more interest of late.
The U.S. government will report housing starts and building
permits data for April on Wednesday. U.S. home building declined in
March but new permits reached their highest level since September
2008, showing the sector is struggling even as builders anticipate
future demand.
The U.S. Department of Labor will also release data on April
consumer prices on Tuesday. U.S. consumer prices eased a bit in
March, as much tamer energy costs hinted at lighter inflation
pressures heading into the spring.
AMR Unions Get Their Day In Court
The unions representing thousands of American Airlines flight
attendants, pilots and other workers will spend next week arguing
against the airline's move to terminate their labor contracts.
American's parent, AMR Corp. (AAMRQ), had its say in the first
part of a bankruptcy-court trial last month, which broke for
several weeks to give parties time to attempt to negotiate a
compromise.
The flight attendants' and pilots' unions on Friday planned to
deliver no-confidence petitions to AMR management in Texas as well
to rally outside the Manhattan bankruptcy court in protest of the
proposed termination of their labor contracts.
If the unions' public comments or witness questions at the first
part of the trial are any indication, their case will probably be
heavy on endorsing an AMR merger with suitor US Airways Group Inc.
(LCC), which the unions have said has offered more generous terms
than what AMR wants to impose.
AMR is trying to cut $1.25 billion in annual labor costs, with
about $990 million to come from union concessions.
EU Ministers To Discuss Spain, Greece At Meeting Monday
European Union finance ministers are set for a highly sensitive
monthly meeting in Brussels on Monday in the wake of forecasts
which show the divergent prospects for the bloc's economies,
including some member states deviating from their planned budget
reduction path.
"It'll be a very political Eurogroup meeting, short on details
and long on politics," a senior EU official said of the agenda.
"Spain will be the focus of much attention, and the situation is
moving very fast there."
Greece will also be discussed as politicians seek to form a
coalition government in the wake of elections there.
G-8 Leaders To Meet At Camp David
U.S. President Barack Obama will host the Group of Eight summit
at Camp David May 18-19. The G-8 comprises Canada, France, Germany,
Italy, Japan, Russia, the U.K. and the U.S.
Newly-inaugurated Russian President Vladimir Putin said he will
miss the upcoming summit as he is busy forming a government but
will meet Obama at the Group of 20 summit in June, the Kremlin said
Thursday.
Export-Import Bank Extension Likely Next Week
Senate Republicans on Thursday blocked an attempt by the
Democratic majority to unanimously pass a three-year extension of
the authority of the U.S. Export-Import Bank, a federal agency that
helps U.S. manufacturers sell goods abroad.
Republicans are demanding the right to hold amendment votes on
the legislation that would seek to place constraints on the bank's
ability to provide financing assistance to exporters.
Despite the political maneuvering, it is expected that an
agreement will be reached between the parties that would allow
votes on the bank's extension to take place next week.
The House passed the three-year extension of the bank's mandate
earlier this week, lifting its financing cap gradually over that
time to $140 billion from its current $100 billion.
The bank provides loan guarantees and some limited insurance to
foreign companies seeking to buy U.S. manufactured goods. Every
major American foreign trading partner operates a similar entity in
their country providing assistance to domestic exporters.
Conferences
Among the significant conferences next week are the Bank of
America Merrill Lynch Health Care Conference Monday through
Thursday in Las Vegas; the Deutsche Bank Clean Tech, Utilities and
Power Conference on Monday and Tuesday in New York; the JMP Group
Inc. Research Conference Monday through Wednesday in San Francisco;
the JPMorgan Homebuilding and Building Products Conference on
Tuesday and Wednesday in New York; the JPMorgan TMT Conference
Tuesday through Thursday in Boston; the Oppenheimer Industrials
Conference on Tuesday and Wednesday in New York and the Bank of
America Merrill Lynch Global Transportation Conference on Thursday
and Friday in Boston.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com
--Jacqueline Palank, Corey Boles, Frances Robinson, Clare
Connaghan and Dow Jones Newswires staff contributed to this
article.