Day Ahead: Top 3 Things to Watch
Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Nonfarm Payrolls Dominates the Day
The April employment report will take most of the market’s attention before the bell tomorrow.
The Labor Department will release its latest jobs figures at 8:30 AM ET (12:30 GMT).
Economists expect that nonfarm payrolls rose by 181,000 last month, according to forecasts compiled by Investing.com.
The unemployment rate is forecast to stay at 3.8%.
Wages, a key component of inflation, are predicted to rise, with average hourly earnings climbing 0.3% for the month, pushing its year-over-year gain to 3.3%.
Data earlier this week has been generally encouraging for the jobs number, with the ADP private sector payrolls posting a particularly strong gain for April.
On Wednesday the Federal Reserve pointed to the employment picture as one reason it can remain patient either way on rates, saying in its statement that "(j)ob gains have been solid, on average, in recent months, and the unemployment rate has remained low."
2. PMIs Also on Tap, Plus Lots of Fed Chatter
Payrolls aren’t the only indicator on tomorrow’s economic calendar.
At 10:00 AM ET (14:00 GMT), the Institute of Supply Management will release its non-manufacturing purchasing managers index (PMI).
The services PMI is expected to edge up to 57.2 for April. The ISM's manufacturing index declined slightly in April but still signaled a growing economy.
Before that, at 9:45 AM ET, Markit will release the final measure of its composite PMI for April.
The PMI is forecast to remain at 52.8, the same as the preliminary measure.
And for those not tired of the Fed this week, there are a whopping eight Fed members speaking tomorrow, most in California.
Richard Clarida, John Williams, Michelle Bowman, James Bullard, Mary Daly, Robert Kaplan and Loretta Mester will be speaking throughout the day at the Strategies for Monetary Policy conference in Stanford, Calif., starting at 11:30 AM ET.
Chicago Fed President Charles Evans is the odd one out. He gets a flight to Stockholm for the lengthily named NABE International Symposium: "Global Economies at the Crossroads: Growing Together While Growing Apart?"
Evans will speak at 10:15 AM ET.
3. Fiat Chrysler to Report Results
The earnings calendar starts to lighten up tomorrow, with no reports coming after the end of trading.
Before the bell, Fiat Chrysler (NYSE:FCAU) will issue results, with analysts predicting a first-quarter profit of 53 cents per share, according to forecasts compiled by Investing.com.
Revenue is seen coming in at about $29 billion.
The stock still hasn’t recovered from the sharp dive when it last reported earnings in February. Fiat Chrysler issued downside guidance for full-year earnings then and singled out challenges in China.
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