The Federal Reserve could signal an exit strategy from the U.S.
policy of monetary easing when it meets next week, according to
analysts.
Government reports are likely to show sales of new and existing
homes rose in August, continuing the steady increase since
March.
World leaders will gather next week first for the U.N. General
Assembly in New York, then for the Group of 20 Summit in
Pittsburgh.
Fed May Signal Plans For Unwinding Stimulus
While a Federal Reserve policy committee is unlikely to raise
interest rates at its meeting Tuesday and Wednesday, it could offer
clues about the timing for unwinding the central bank's aggressive
monetary stimulus put in place during the past year to rescue banks
and revitalize the economy. The Fed also is expected to stick with
its plan to buy $1.45 trillion in mortgage-linked securities
despite potential resistance from a few regional Fed presidents.
The Federal Open Market Committee has held the federal-funds target
rate at zero to 0.25% this year to revitalize lending and lift the
economy out of the deepest recession in decades.
RIM, Food Companies, Rite Aid To Report
Smart-phone maker Research in Motion Ltd. (RIMM), food companies
General Mills Inc. (GIS) and ConAgra Foods Inc. (CAG), and
drugstore chain Rite Aid Corp. (RAD) are among the few companies
posting results next week. RIM, which issued a fiscal
second-quarter forecast in line with estimates in June, is expected
to report higher earnings and revenue on continued strong sales of
its Blackberry model on Thursday. General Mills, which reports
Wednesday, last week said its fiscal first-quarter earnings are
likely to top internal projections, helped by rebounding margins,
which were hurt last year by higher grain and other costs. Earlier
this month, Citigroup Inc. (C) upgraded its stock rating on
ConAgra, which reports Tuesday, saying its fiscal-year earnings
would be better than Wall Street expected. And analysts expect Rite
Aid, which reports Thursday, to post a smaller loss and nearly flat
earnings as it pursues a turnaround plan.
Home Builders KB, Lennar See Smaller Losses
Home builders Lennar Corp. (LEN) and KB Home (KBH) will report
quarterly results Monday and Friday, respectively. Both are
expected to post smaller losses than a year earlier. Last week,
Lennar improved its estimated loss to 49 cents a share, from a loss
of $1.19. It also shaved the predicted land-related charges on the
better order trends. KB Home, the fifth-largest U.S. builder, has
been making smaller, more-affordable homes, looking to tap
first-time buyers who can take advantage of a federal tax credit of
up to $8,000 and don't have to worry about selling existing
homes.
Homes Sales Likely To Show August Increase
Government reports are expected to show sales of new and
existing homes grew in August. After a multiyear slump, the
home-building industry has enjoyed a sales boost in recent months
from the tax credit for first-time home buyers. A report on
existing home sales is due Thursday and one on new homes
Friday.
The Conference Board will issue its August index of leading
indicators Monday. August durable goods orders will be detailed
Friday, the same day that the revised Reuters/University of
Michigan consumer sentiment index for September comes out. The
preliminary reading for the index rose to 70.2 in September from
65.7 in August, the first increase since June. Reports on regional
manufacturing activity are due Tuesday from the Richmond Fed and
Thursday from the Kansas City Fed.
FCC Chairman To Detail Net Neutrality Rules
Federal Communications Commission Chairman Julius Genachowski on
Monday will propose rules that would prevent wireless phone
companies from blocking some Internet traffic, a move that could
set off a battle between open-Internet proponents and phone and
cable companies that don't want the government telling them how to
run their networks. The new rules would extend so-called net
neutrality principles over wireless companies and would require all
Internet providers to use "reasonable" network-management practices
in dealing with Internet traffic, according to people familiar with
the proposal.
Geithner To Testify On Regulatory Reform
Treasury Secretary Timothy Geithner will testify Wednesday on
Capitol Hill as lawmakers step up work on legislation to revamp
regulation of the financial markets. He will appear before the
House Financial Services Committee, which plans 11 hearings through
Oct. 9. The brisk pace comes as congressional staffers work on
separate House and Senate measures to revamp and overhaul the U.S.
financial regulatory system. President Obama said in a speech
Monday that it was a top priority for his administration to
complete legislation this year.
IRS Amnesty Program Will End Wednesday
Wednesday is the deadline for U.S. citizens who have evaded
taxes by hiding their foreign holdings to decide whether to turn
themselves in to an Internal Revenue Service amnesty program. The
disclosure program has run in parallel with a joint Justice
Department-IRS civil court case designed to force Swiss bank UBS AG
(UBS) to disclose identities of thousands of U.S. clients who may
have pursued tax-evasion schemes. UBS agreed last month to hand
over details on 4,450 accounts as part of a settlement of the
case.
House May Vote On Extending Jobless Benefits
The U.S. House of Representatives could vote Wednesday or
Thursday on an extension of unemployment insurance benefits,
according to two House Democratic aides. The extension will offer
an additional 13 weeks of benefits to jobless people living in
states with an average unemployment rate of 8.5% during the past
three months. Senate leaders have said they too favor an extension.
This would be the fourth time lawmakers have acted to offer greater
federal assistance to the unemployed since the recession began.
Obama To Push Health-Care Reform On TV
President Barack Obama will embark on a media blitz this
weekend, when he is scheduled to appear on five Sunday shows on
ABC, CBS, NBC, CNN and the Spanish-language network Univision. He
will use his appearances to continue his push to build public
support for a health care overhaul.
On Monday night, Obama will appear on David Letterman's "Late
Show," his fifth time on the show. Obama, the first sitting
president to appear on Letterman's show, will be the sole guest
that evening.
World Leaders To Meet At UN, G20 Summit
World leaders will gather next week in New York for the U.N.
General Assembly meeting. On Tuesday, U.N. chief Ban Ki-moon will
host a climate summit, where Chinese President Hu Jintao will
present his country's plan for tackling global warming. The next
day, Obama will moderate a meeting between Israeli Prime Minister
Benjamin Netanyahu and Palestinian President Mahmoud Abbas at the
General Assembly. Obama also will speak to the 192-nation body
Wednesday as will Iranian President Mahmoud Ahmadinejad. Obama will
chair a special meeting of the U.N. Security Council on nuclear
non-proliferation and disarmament Thursday. While in New York,
Obama will meet with Chinese President Hu Jintao and Russian
President Dmitry Medvedev.
Leaders of 20 major and developing countries move to Pittsburgh
on Thursday and Friday for the G20 summit. The White House wants
leaders to agree on a new "framework" to address the global
imbalances it believes contributed to the economic crisis. Other
issues for discussion include climate change, finding consensus on
how to measure the amount of capital that banks are required to
hold, and China's push for a greater developing-world voice at the
International Monetary Fund and other global institutions.
Clinton Global Initiative Summit Comes To NY
Former President Clinton will host the annual Clinton Global
Initiative summit Tuesday through Friday in New York. The summit
gathers heads of state, celebrities, business leaders and
humanitarians to tackle the issues of poverty, energy and climate
change, health and education. More than 1,400 pledges of action
valued at $46 billion have been made since the event began in
2005.
Fashion Designers Take Shows To London, Milan
Fashion designers move to London and Milan after a series of
shows in New York. London Fashion Week, showing collections for
spring and summer, runs through Tuesday, and Milan's fashion week
begins Wednesday. After a mass exodus of high-profile design talent
starting in the late 1990s, London is reaffirming its profile with
a fresh crop of designers. Overall, the past year has been among
the most turbulent for the fashion industry, which has been hurt by
plunging consumer demand and tight credit.
Conferences
Among the significant conferences next week are the Bank of
America Securities Smid Cap Conference on Monday and Tuesday in
Boston; UBS Global Life Sciences Conference from Monday through
Wednesday in New York; Bank of America Securities Power & Gas
Leaders Conference on Tuesday and Wednesday in New York;
CanaccordAdams Healthy Living Conference on Wednesday in Boston;
and Finra Boot Camp on Thursday and Friday in Chicago.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Dow Jones Newswires staff contributed to this report.)