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U.S. Day Ahead: Deep discounts set to eat retailers’ profits

Thursday, January 05, 2012 - 02:14

Jan. 4 - Reuters Retail Analyst Jharonne Martis says December same-store sales should rise by 3.4% driven by deals. However, she warns this could be a double edged sword for companies.

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Here is your US -- ahead we'll see if retailers got a surprise gift -- lop off -- with the release those same stores sales for December. Expect overall sales to rise by 3.4 percent based and more people hitting the shops and dramatic discounts. But Thomson Reuters retail analyst around -- says that's a double edged sword. We tell us that we have to offers the promotions and free shipping -- the consumers into their stores this holiday season. As a result -- margins could definitely be hard and according to our -- my data we're not expecting any major big surprises. But Q4 2011 earnings. This sectors set to expand when the ISM non manufacturing index comes out at 10 AM. I have -- says it should see an uptick to 52 point not in December after the previous debt. That's thanks to a boost in the employment component still a forecaster -- this won't necessarily translate into a better overall nonfarm payrolls report. On Friday. And there's more key jobs data on tap that could move the markets in the morning. Challenger layoffs is out at 730 followed by the ADP reported 815. An initial jobless claims at 830. The underlying trend in unemployment looks likely to continue its slow decline. Claims are set to drop to 375000. Under the critical 400000 level. Retail and -- set to dominate results highlights include Family Dollar Monsanto and Constellation Brands. But Santa is the start might stand out that that is the earnings of eighteen cents a share in the first quarter. A surprise to the upside of 13%. When compared to mean estimate. And military cuts are under the microscope -- Defense Secretary Leon Panetta unveils an eight month strategic review. That's expected to propose keeping fewer troops in Europe and abandoning the goal of maintaining a force that can fight. And -- and two wars simultaneously. This comes after president Barack Obama asked defense officials to cut about 400 billion dollars off their budgets. I'm Rhonda schaffler this is Reuters Insider.

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U.S. Day Ahead: Deep discounts set to eat retailers’ profits

Thursday, January 05, 2012 - 02:14