Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Day Ahead: Top 3 Things to Watch

Published 10/10/2018, 04:45 PM
Updated 10/10/2018, 04:45 PM
Wall Street found few buyers at the close.

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

1. Will U.S. Weakness Hit Global Markets?

Individual stocks and economic indicators will take a back seat as investors try to regain a sense of stability after the beating the market took today.

Just last week the Nasdaq was around 8,000. It closed around 7,422 today.

And it’s going to take a lot of assessing as there’s no good single explanation for why the rout continues.

Rallying Treasury yields have been the go-to excuse, but the 10-year yield was lower at the close of the stock market after post-auction supply hit the market.

Trade is another reason that’s been trotted out consistently, but there’s little new on that front. If anything, the aversion of the complete dismantling of NAFTA was a positive.

Tech’s weakness is reminiscent of previous fourth-quarter pre-earnings jitters, but valuations have been lofty for a while.

Early birds will want to look at the Asian and European markets for signs of contagion. If they can hold off the kind of carnage Wall Street saw, with some sectors, especially tech, showing some resilience, that will be a good sign of U.S. futures.

2. Walgreen’s, Delta Set to Report

Dow component Walgreens Boots Alliance (NASDAQ:WBA) reports earnings before the bell tomorrow.

The drugstore chain is expected to report a profit of $1.45 per share on sales of about $34 billion.

Shares of Walgreen’s have been climbing steadily since hitting a 52-week low in June that was reached in part by Amazon (NASDAQ:AMZN) announcing its intentions to acquire online pharmacy PillPak.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The chain is benefiting from its recent acquisition of Rite Aid stores. That deal helped fuel growth in back-of-store sales at the prescription counter, which account for more than 70% of Walgreens' U.S. drugstore sales. Investors will be especially keen to see an improvement in same-store sales, which had actually declined in the previous quarter.

Delta Air Lines (NYSE:DAL) will also weigh in with its latest results.

Wall Street forecasts that the carrier earned $1.75 per share, with revenue of about $12 billion.

In the last three months Delta stock is little changed, about in the middle of the performance of the U.S. carriers. Airlines stocks were hit today in the broad market selloff.

3. CPI Rise of 0.2% Expected

Retail inflation numbers arrive at 8:30 AM ET (12:30 GMT) tomorrow on the heels of today’s data on wholesale prices.

The producer price index (PPI) came in just about as expected. The market’s focus continues to be on rates and yields, so the core consumer price index (CPI), which excludes food and energy prices, will be of particular interest.

The core CPI is expected to have risen 0.2% in September, up 2.3% year on year.

The overall CPI is also forecast to have risen 0.2% last month, with a year-on-year rise of 2.4%.

Latest comments

Jittery market. A fear of recent heights?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.