Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Walmart Needs Digital Earnings Strength
Retail earnings continue with Walmart Inc(NYSE:WMT) issuing numbers before the bell.
Analysts, on average, expect a profit of $1.22 per share, on sales of about $126 billion.
In a nutshell, it’s all about e-commerce. That's a key battleground where market leader Amazon (NASDAQ:AMZN) is a major threat to brick-and-mortar operations. Walmart is spending billions of dollars to acquire digital properties, reorganize its stores and train its workers.
In its biggest-ever deal, announced this year, Walmart bought a controlling stake in India’s largest online seller, Flipkart Group, for $16 billion. That follows an acquisition of e-commerce startup Jet.com two years ago.
The stiff competition in the grocery space and the shift to e-commerce are the headwinds that will continue to pressure profitability. That won’t go away anytime soon.
2. Housing Numbers on Tap
Numbers giving the market insight into the housing market arrive before the bell tomorrow.
Data on housing starts and building permits arrive at 8:30 AM ET (12:30 GMT).
Economists expect that month-on-month housing starts were up 7.4% in July. Building permits are expected to be up 1.4%.
At the same time, the Philly Fed manufacturing index arrives. Economists are expecting a reading of 21.9.
3. Energy Stocks Hit
Oil prices are in the spotlight again, keeping energy stocks active on Wall Street.
Energy stocks fell sharply today. The S&P Energy Sector index tumbled 3.5%, with Marathon Oil (NYSE:MRO), its weakest component, down about 7%
On the New York Mercantile Exchange crude futures for September delivery fell 3% to settle at $65.01 a barrel, while on London's Intercontinental Exchange, Brent fell 2.10% to trade at $70.94 barrel.Inventories of U.S. crude rose by 6.805 million barrels for the week ended Aug. 10, missing expectations for a draw of 2.449 million barrels, according to data from the Energy Information Administration (EIA).