Day Ahead: Top 3 Things to Watch
Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. More Bank Earnings on the Way
Tech may take a hit tomorrow after IBM 's (NYSE:IBM) revenue came in below forecasts today.
In addition, there may be trouble in FANG land after Netflix (NASDAQ:NFLX) warned on its second-quarter profit and also gave weaker subscriber guidance as it hikes prices in the U.S.
Tomorrow’s earnings continue to be dominated by the financial industry. No fewer than 21 financial companies will be reporting.
Morgan Stanley (NYSE:MS) reports before the opening bell. The big investment bank is expected to report $1.17 a share in earnings, according to analysts polled by Investing.com, on revenue of $9.91 billion. That would be down from $1.45 a share and revenue of $11.08 billion a year ago.
The stock is up 18.6% this year after the fourth quarter’s slump of 24%.
US Bancorp (NYSE:USB) also reports ahead of trading. Analysts predict the Minneapolis-based banking company will report earnings of $1 a share, up from 96 cents a year ago. Revenue is projected at $5.6 billion, which would be up 2.2% from a year ago. The shares are up 10% so far this year.
And beverage-and-snack giant PepsiCo (NASDAQ:PEP) also weights in. The company is expected to report earnings of 92 cents a share for the quarter. That would be down from 96 cents a year ago. Revenue is forecast at $12.67 billion, up from 0.9% from a year ago.
The stock is up 10.8% this year.
2. Trade Deficit Seen Widening
It seems Wall Street reacts to every talking head on trade, but tomorrow brings some hard data.
The Commerce Department will release the latest trade balance figures at 8:30 AM ET (12:30 GMT). On average, economists expect that the U.S. trade deficit widened to $53.5 billion in February, according to forecasts compiled by Investing.com.
At 10:00 AM ET, the market will get February numbers on wholesale Inventories, which are expected to rise 0.4%.
3. EIA to Spring Surprise Draw in Crude Stockpiles?
Ahead of the Energy Information Administration (EIA) petroleum report due Wednesday, investors got an early insight into weekly U.S. supplies, showing a draw in supplies for the first time in four weeks.
The American Petroleum Institute data released Tuesday -- not perfectly correlated with the EIA's report -- showed weekly crude stockpiles fell by 3.1 million barrels last week.
Oil bulls will be hoping that the EIA will spring a surprise and also report draw in crude stockpiles despite expectations for a build of 1.7 million barrels for the week ended April 12.
U.S. weekly production, which remains at a record 12.3 million barrels a day, will also attract attention amid speculation as to whether OPEC and Russia are nearing the end of their production-cut deal agreed to in December.
Crude oil futures settled 1% higher at $64.79.
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