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Day Ahead: Top-3 Things to Watch

Investing.com - Here are the top-3 things that could rock markets tomorrow.

1. Inflation, Consumer Spending and Manufacturing on the Way

The update on the health of the U.S. consumer and the pace of consumer prices due 8:30 AM ET (12:30 GMT) on Friday will help traders assess whether the slowdown in the global economy is beginning to seep into the U.S. economy.

The Fed’s preferred inflation measure, core PCE price index, which calculates spending minus volatile food and energy costs, is expected to rise to 0.3% in July from the prior month, but remain unchanged at 1.6% from a year earlier.

Personal income for July is forecast to have slowed to a rise of 0.3% from 0.4% in the prior month, while personal spending is expected to have increased to a rise of 0.5% from 0.3%.

The Chicago purchasing managers index (PMI), which gives investors insight into manufacturing in the Midwest, will come out at 9:45 AM ET.

The August PMI is expected to rise to 48.1, according to economists.

Consumer sentiment data is also expected to be closely watched.

The final measure of the University of Michigan’s August consumer sentiment index, due at 10:00 AM ET is forecast to show a reading of 92.1, unchanged from the preliminary number.

2. Oil Rig Count Rolls In

Traders will look to the latest rig count data due Friday for clues on crude production activity after U.S. production surged to a record 12.5 million barrels a day last week.

Data last week showed the number of oil rigs operating in the U.S. fell by 16 to 754.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

Oil prices are set to end the week higher as signs of tightening global supplies help ease fears of slowing oil demand growth, driven by the weakness in the global economy. Sentiment on oil has also been bolstered by optimism on trade as China said it may cooperate, boosting hopes of a meeting between the U.S. and China next month.

3. Campbell Soup Earnings Due

Campbell Soup (NYSE:CPB) reports earnings before the opening bell Friday amid a shakeup at the top, as the food company on Thursday hired Mick Beekhuizen to succeed Anthony DiSilvestro as chief financial officer.

The move comes as Chief Executive Mark Clouse, who took up the reins earlier this year, bolsters his team to revive some of the food company's brands amid stiff competition from upstart brands that draw on the health and wellness trend appreciated by younger consumers.

Campbell Soup is expected to report earnings of 41 cents a share on revenue of $1.98 billion.

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