U.S. Markets closed

Day Ahead: Top 3 Things to Watch

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

1. AT&T, Boeing, Caterpillar and More

As the earnings parade continues tomorrow, AT&T I(NYSE:T) reports tomorrow before the bell, following mixed results from Verizon (NYSE:VZ) today.

Analysts are forecasting a profit of 86 cents per share on revenue of about $45 billion.

It’s not too long ago that these two telecom giants (now communications services companies according to S&P) would be all about wireless customers. But not today.

Verizon lost 44,000 wireless customers in its most recent quarter. But in AT&T’s case that metric will likely take a back seat given its control of Time Warner, with attention more on how HBO plans to battle Disney’s new streaming service Disney+.

Boeing (NYSE:BA) will also issue results, with analysts looking for earnings of $3.23 per share and revenue of $23 billion.

Investors will want updates on the company’s grounded 737 MAX jetliner.

Fellow industrial Caterpillar (NYSE:CAT) will also report. Analysts are forecasting a profit of $2.83 a share on revenue of $13.3 billion.

Also reporting are defense companies General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC) and Domino’s Pizza (NYSE:DPZ).

2. Facebook, Microsoft Headline Postmarket Earnings

After the bell tomorrow the earnings calendar will be a tale of two techs: social media pioneer Facebook and software stalwart Microsoft.

On average, analysts expect that Facebook (NASDAQ:FB) earned $1.61 per share in its first quarter, with revenue of about $15 billion, according to forecasts compiled by Investing.com.

As usual with social media companies, user engagement will also be closely watched.

The company reported 2.32 billion monthly active users (MAUs) for the fourth quarter, which was up 9% from the year-ago period.

Stock research firm Trefis predicts similar growth for the latest quarter, with MAUs rising to $2.5 billion by the end of 2020.

For Microsoft (NASDAQ:MSFT), analysts are predicting a Microsoft (NASDAQ:MSFT) of $1 per share on revenue of about $32.7 billion.

The big takeaway will be the company’s cloud computing business, which is now the growth driver of sales.

Its commercial cloud revenue rose 48% overall last quarter from the year-ago period. Revenue for cloud service Azure rose 76%, a sizable gain, but the same as the fiscal first quarter, raising some worries growth is leveling off.

Last month Mizuho initiated coverage on Microsoft with a buy, citing strong potential given 15% to 20% of work worldwide is done on the cloud, Barron’s reported.

3. Build in Crude Stockpiles Set to Resume?

Ahead of the Energy Information Administration (EIA) petroleum report due Wednesday, investors got an early insight into weekly U.S. supplies, showing a build in weekly crude supplies.

The American Petroleum Institute data released Tuesday, while not perfectly correlated with the EIA's report, often serves as an early indication of weekly petroleum levels. It showed weekly crude stockpiles rose by 6.9 million barrels last week.

The EIA is expected to report a build in crude stockpiles of 1.255 million barrels for the week ended April 19. Crude inventories snapped a three-week build in the prior week, falling by 1.396 million barrels.

U.S. weekly production, which remains near record highs despite falling to 12.1 million barrels a day, will likely also attract attention.

Crude oil futures hit fresh 2019 highs, settling 1.1% higher at $66.30 today.

Related Articles

Lawsuit says Tyson, Cargill, JBS conspired to suppress beef prices paid to U.S. ranchers

S&P 500 closes at record high, even as EPS growth stagnates

U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.55%