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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. ADP Employment, Services PMI Highlight Indicators

The economic calendar is packed tomorrow as most of the Wednesday releases were delayed for the national day of mourning for former President George H.W. Bush.

ADP’s measure of private nonfarm employment, closely watched ahead of Friday’s official labor report, will be released at 8:15 AM ET (13:15 GMT). Private payrolls are expected to have grown by 195,000 in November, according to economists.

At 8:30 AM ET the weekly measure of initial jobless claims arrives, with economists predicting a drop to 226,000 for the latest period.

October factory orders come in at 10:00 AM ET, with a 1.9% drop predicted.

At the same time, the ISM will release its measure of services activity in the economy for November will be released.

On average, economists expect that the ISM non-manufacturing PMI fell slightly to 59.2 last month.

2. OPEC Meeting Begins

The oil market will be particularly active as OPEC gets its meeting in Vienna underway.

Traders have been grappling with mixed signals from Saudi Arabia about whether there will be a production cut as the kingdom does not want to bear the brunt of any supply contraction by itself and also wants to avoid irking President Donald Trump.

Russia, which is expected to participate in any cut, has also been cagey.

In addition, traders will have the latest weekly oil inventories data – pushed forward a day – to digest at 11:00 AM ET (16:00 GMT).

The big rise in U.S. crude stockpiles is a major reason why oil prices tumbled sharply last month.

Traders are expecting a decline this time around, with inventories forecast to have dropped by more than 2 million barrels.

3. Kroger Looks for Sales Comeback

Among earnings before the bell tomorrow, supermarket chain Kroger (NYSE:KR) will issue results.

Kroger shares are lower over the past three months as the broader market selloff made it tough for the company to recover from a sharp drop in mid-September when it reported quarterly sales below estimates.

Analysts are predicting a profit of 43 cents per share on sales of about $27.7 billion.

Other retailers reporting include Duluth Holdings (NASDAQ:DLTH) and Lands’ End (NASDAQ:LE).

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