Coca-Cola is likely to be in focus after it announced that it has completed the acquisition of the North American operations of Coca-Cola Enterprises and the sale of its Norway and Sweden bottling operations to CCE. Coca-Cola also noted that it expects to generate operational synergies of at least $350 million per share over the next four years and $150 million in systems savings.
UPS may react to its announcement concerning a general rate increase averaging 5.9%, covering non-contractual shipments in the U.S., Canada and Mexico. The company noted that the rate adjustment takes effect on October 18th, 2010 and applies to minimum charge, LTL rates and accessorial charges.
WD-40 Company is likely to see some buying interest after it announced an increase in its regular quarterly dividend by 8% to 27 cents per share, payable on October 29th, 2010 to stockholders of record on October 14th, 2010.
Genzyme and Sanofi-Aventis may react to an announcement from Sanofi-Aventis that it has launched an $18.5 billion hostile bid for Genzyme. The action follows an earlier offer Sanofi made to Genzyme that was subsequently rejected by the company.
Micorsemi Corp. is likely to see some activity after it announced a deal to buy Actel Corp. for $20.88 per share through a cash tender offer. The total transaction value is about $430 million, net of Actel’s projected cash balance at closing.
U.S. Economic Reports
The monthly non-farm payrolls report takes the spotlight in the unfolding week. Along with it, traders may also focus on the National Association of Realtors' pending home sales report, the weekly jobless claims report and the Institute for Supply Management's non-manufacturing index for September.
The Commerce Department's factory goods orders for August, the Federal Reserve's consumer credit report for August, the wholesale inventories report for August and announcements concerning the treasury auctions of 3-year and 10-year notes and 30-year bonds round up the other economic events of the week.
The non-farm payrolls report is likely to show that payrolls remained unchanged in September, as the government sector may have seen more job losses in the wake of the elimination of temporary workers hired for Census. Going by the weekly jobless claims numbers, which showed a decline in September compared to the previous month, the private sector may have continued adding jobs.
The non-manufacturing index of the ISM is expected to remain little changed in September. Activity in the service sector may have taken a hit by the payback phenomena of the homebuyers' tax credit. Retail sales have not picked up significantly. However, the Beige Book said that non-manufacturing activity is still on an upward trend.
The Commerce Department is due to release its report on factory goods orders for August at 10 AM ET. Economists expect factory good orders for the month to decline 0.4%.
In July, factory goods orders edged up 0.1% following two consecutive months of declines. Meanwhile, durable goods orders, which make up the bulk of factory goods orders, fell 1.3% month-over-month in August. Economists had estimated a 1.4% drop in durable goods orders. Excluding transportation orders, new orders increased 2%.
Transportation equipment orders fell 10.3%, primarily dragging down the headline number. Capital goods order, excluding aircraft, rose 4.1% following a 5.3% drop in the previous month.
Data on Pending Home Sales, which is a leading indicator of housing market activity released by the National Association of Realtors, is due out at 10 AM ET. A pending sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. The index is expected to increase by 1% in August.
In July, the pending home sales rose 5.2% month-over-month compared expectations for an unchanged reading. Pending home sales had declined in the previous two months. All four regions showed monthly growth.