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Day Ahead: Top 3 Things to Watch

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Alibaba Reports With China Economy in Spotlight

Chinese e-commerce behemoth Alibaba (NYSE:BABA) reports earnings before the bell tomorrow.

The numbers will take on even more significance now as a proxy for the health of the Chinese consumer as the trade war between China and the U.S. heats up again.

Alibaba is expected to report a profit of $6.62 per share, with sales of about $91.6 billion, according to the analysts’ consensus estimate compiled by Investing.com.

The stock finished at $174.91 Tuesday, up 3%. It was a 10-month high and up 34.5% from its $130 low in the December slump. But it fell as much as 12.9% between May 3 and Monday as tariff worries erupted.

Macy’s (NYSE:M) also weighs in, with analysts looking for a profit of 34 cents per share and sales around $5.5 billion.

After the close of trading, Cisco Systems (NASDAQ:CSCO) will issue its quarterly results.

On average, analysts predict a profit of 77 cents per share and revenue of around $13 billion.

Last week, Needham said it was cautious on Cisco heading into earnings, saying that the company will likely beat estimates, but outlook may be constrained, Briefing.com reported.

2. Retail Sales Rise Predicted

Retail sales figures will be most closely watched on the economic calendar tomorrow.

The Commerce Department will report April retail sales numbers at 8:30 AM ET (12:30 GMT).

Economists predict that retail sales rose 0.2% last month, according to forecasts compiled by Investing.com. Core retail sales, which exclude autos, are expected to have risen 0.7%.

At the same time, the May New York Empire Manufacturing Index arrives, with economists looking for a drop to 8.2.

At 9:15 AM ET, April industrial production numbers will be released, with economists looking for it to remain flat. Capacity utilization is forecast to have ticked down to 78.7% last month.

At 10:00 AM ET, business inventories for March will come out, expected to have remained flat that month.

3. Oil Stockpiles Seen Falling

The Energy Information Administration releases its weekly oil inventories numbers tomorrow at 10:30 AM ET (14:30 GMT).

Analysts predict that crude stockpiles fell by 800,000 barrels.

Today in OPEC's monthly report, the cartel said that its 14 members, led by Saudi Arabia, had cut output again in April, albeit slightly.

OPEC said it pumped 30.03 million barrels per day in April, or nearly 550,000 bpd less than in March.

It also forecast that total world oil supply will increase by 2.22 million bpd in 2019 versus demand growth of 1.21 million. The 1 million bpd difference could give the group legitimacy to extend production cuts at its June meeting with Russia and other world oil producers.

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