What to Watch in the Week: Can Bed Bath & Beyond Meet Expectations?

In 'What to Watch on Wall Street' for the week of January 4, investors will get a mix of both earnings and economic reports to start off the new year. Midweek, we get the latest financial results from Monsanto (MON), followed by Walgreens Boots Alliance (WBA) and Bed Bath & Beyond (BBBY) on Thursday. One of the companies investors will be watching is Bed Bath & Beyond. For the third quarter, analysts are expecting profits of $1.09 a share on revenue of nearly $3 billion. Compared to a year ago, earnings are projected to drop while sales are expected to go up. During the same period the year prior, the company earned $1.19 a share on revenue of $2.94 billion. Overall, analysts are siding with the bears for the upcoming quarterly results because the company recently lowered its third quarter outlook. It now expects to earn between the range of $1.07 to $1.10 a share, below its previous range of $1.14 to $1.21 a share. Additionally, the company also said that comparable store sales are expected to decline by 0.4 percent, compared to its previous outlook of an increase of 1 percent to 3 percent. Following this news, Cantor Fitzgerald lowered its price target to $50 from $53 a share, adding, 'We remain on the sidelines given the negative momentum in Bed Bath & Beyond's business.' The firm is maintaining its 'hold' rating on the stock. Also in the upcoming week, there are several economic reports to look out for. We begin the week with the PMI manufacturing index and ISM manufacturing index. Then Tuesday, we get motor vehicles sales. Midweek, we'll get international trade data followed by jobless claims on Thursday. Last but not least, we end the week with the employment situation released by the Bureau of Labor Statistics. This is important since the Fed will be closely watching the report. TheStreet's U-Jin Lee reports from New York.