BP PLC (BP, BP.LN) Chief Executive Tony Hayward has been asked
to testify on Capitol Hill next week as the beleaguered oil giant
faces increased scrutiny about its response to the oil spill in the
Gulf of Mexico.
Economic reports include the government's May report on housing
starts and building permits, as well as the consumer price
index.
Meanwhile, Best Buy Co. (BBY), FedEx Corp. (FDX) and La-Z-Boy
Inc. (LZB) are among the companies scheduled to report quarterly
results next week.
BP Chief Executive May Testify To House Panel
BP's Hayward has been asked to testify on Capitol Hill next week
before a committee that has been scrutinizing the oil company's
actions in the buildup to a giant oil spill in the Gulf of Mexico.
The House Energy and Commerce Committee is planning a hearing
Thursday before a subcommittee. Hayward's appearance will be his
first on Capitol Hill since the explosion. He has been criticized
for his handling of the response, including for estimates about the
rate at which oil was flowing from a broken undersea pipe that have
turned out to be inaccurate.
Brokers' May Data To Highlight Market Volatility
The three major U.S. online brokers - TD Ameritrade Holding
Corp. (AMTD), Charles Schwab Corp. (SCHW) and E*Trade Financial
Corp. (ETFC) - will release their May trading data next week.
Stock-market volatility spiked last month as economic fears built
anew, with the market yo-yo best highlighted by the May 6 flash
crash. The sector has been suffering with subdued trading volumes,
so a spike in May would be a welcome sight for the companies'
investors. Shares of all three are down for 2010.
Best Buy, La-Z-Boy Expected To Report Strong Results
Furniture maker La-Z-Boy and consumer-electronics seller Best
Buy are among the companies scheduled to report their latest
financial results next week. Wall Street expects all three will
post improved results from year-ago levels.
For La-Z-Boy, which reports Monday, analysts polled by Thomson
Reuters expect earnings to more than triple on an 8% increase in
revenue. Best Buy a day later is also expected to post an 8%
increase in revenue, which should help boost that company's
bottomline. Both are benefiting from an improved economy, which is
giving consumers more confidence to spend money again.
FedEx Expected To Report Strong Results Wednesday
FedEx reports quarterly results Wednesday, with investors
anxious to see if the package-delivery giant still considers the
global economic recovery on track. Early indications from FedEx
have been positive, because the company recently increased its
dividend by 1 cent, to 12 cents a share. But Wall Street is eager
nonetheless to hear FedEx's forecast for global trade, at a time
when fears are growing that financial turmoil in Europe and a
possible slowdown in China have the potential to sap the nascent
international rebound.
Chicago Board Options Exchange Expected To Launch IPO
The Chicago Board Options Exchange is expected to move ahead
with its initial public offering on Tuesday, despite the current
rough market. CBOE Holdings Inc. is launching its deal when many
IPOs have been struggling due to broader market volatility.
Analysts say the CBOE will likely fare better than most offerings
because of its relative rarity: It is the last large member-owned
U.S. exchange to demutualize and go public, and it is the U.S.'s
largest options exchange.
Data On Housing, Consumer Price Index Due Next Week
The government will release housing-starts and building-permits
data for May on Wednesday, with expectations the broader housing
market will see a sluggish second half after benefiting for months
on a tax credit. Earlier this month, a steeper-than-expected plunge
in May home sales was reported in much of the U.S., as the housing
market struggles to wean itself from government support.
Meanwhile, the Department of Labor on Thursday will report the
May reading of the consumer price index, which measures the price
level of a basket of goods and services purchased by consumers.
Spanish Government Due To Present Labor Reforms
Spanish Prime Minister Jose Luis Rodriguez Zapatero has promised
that his government will approve a labor reform Wednesday after
unions and employers failed to reach an agreement on a long-awaited
overhaul of labor laws. The nation is facing pressure from the
European Union to accelerate efforts to cut a towering budget
deficit and impose economic reforms. Financial markets are watching
to see whether Spain, which is grappling with a 20% unemployment
rate, and other highly indebted euro zone countries have the
political muscle to overcome popular resistance to painful
austerity plans.
Obama To Make 4th Visit To Gulf On Oil Spill
President Barack Obama next week will visit Alabama, Florida and
Mississippi for two days to survey the federal government's
response to the Gulf oil disaster. It will be his fourth trip to
the region since the Deepwater Horizon oil rig caught fire April
20, and it comes as he is facing mounting pressure over his
response and reaction to the worst oil disaster in U.S.
history.
German Ministers To Discuss General Motors Aid
Economic ministers from four German states home to Opel
factories will meet Tuesday to discuss how much aid they might
contribute to General Motors Co.'s restructuring of the auto maker,
a state official said Friday. On Wednesday, the federal government
rejected Opel's request for EUR1.1 billion ($1.33 billion) in
guarantees from a fund for companies hit by the financial crisis.
Opel subsequently lowered the amount the company would need for its
restructuring, to EUR3.3 billion from EUR3.7 billion, and the four
states said they are still willing to help.
European Ministers To Call For Opening Of Gaza Borders
European Union foreign ministers are expected to call Monday for
Israel to end its blockade of the Palestinian Gaza Strip, proposing
a "new mechanism" to overcome Israeli fears of military aid getting
in. "The situation in Gaza remains a source of grave concern," says
a draft text prepared for a meeting of the 27 foreign ministers in
Luxembourg Monday, which expresses regret for the loss of life when
Israeli commandos boarded a Gaza aid flotilla on May 31 and killed
nine Turkish activists.
Broadway's Tony Awards To Be Presented Sunday
The Tony Awards, which recognize the best shows on Broadway,
will be broadcast Sunday night on CBS. Sean Hayes, who is nominated
for his role in "Promises, Promises," will host the show at Radio
City Music Hall. Scheduled presenters include Katie Holmes, Daniel
Radcliffe, Will Smith, Jada Pinkett Smith, Angela Lansbury, Paula
Abdul and Stanley Tucci. The musicals "Fela!" and "La Cage aux
Folles" dominated the nominations.
Conferences
Among the significant conferences next week are the Goldman
Sachs Global Healthcare Conference from Sunday through Thursday in
Los Angeles; Wells Fargo Securities Industrial Conference on Monday
and Tuesday in New York; Bank of America Merrill Lynch Global
Transportation Conference on Tuesday and Wednesday in New York; and
William Blair & Co. 30th Annual Growth Stock Conference from
Tuesday through Thursday in Chicago.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
(Kathy Shwiff, Bob Sechler and other Dow Jones Newswires staff
contributed to this report.)
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