Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch

Investing.com  | Nov 08, 2018 04:42PM ET

Parsing the Fed statement will continue tomorrow.

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

1. With the Fed, It’s the Little Things

If the Federal Reserve’s statement were homework, the teacher would hand it back, saying it’s almost exactly what you submitted last time.

There were, indeed, very few changes to the FOMC statement as it kept rates steady. That was reflected in the reaction of stocks, where the S&P sold off right at the release and bounced back just as fast to where it was before the decision.

But investors aren’t grading the Fed on originality. And even the smallest changes will be parsed.

In this case the chatter looks concentrated on the Fed’s new assessment of business fixed investment.

The “growth of business fixed investment has moderated from its rapid pace earlier in the year,” the Fed said in today’s statement.

That contrasted with “business fixed investment (has) grown strongly” in the September statement.

The change indicates that the Fed sees some moderating of the economy, but is content with its slow and steady rate hike pace. That’s sounds a little bearish for stocks, but the market will decide.

2. PPI, Michigan Sentiment on Tap

The market won’t get too long to dwell on Fed language before there are more numbers to digest.

The Labor Department releases its latest measure on wholesale inflation at 8:30 AM ET (13:30 GMT).

Economist predict that the producer price index (PPI) rose 0.2% in October, the same as the month before.

Core PPI, which excludes volatile food and energy prices, is forecast to have risen 0.2% last month, also the same as September's reading.

At 10:00 AM ET, the University of Michigan will release its preliminary measure of November consumer sentiment.

On average, economists expect the index to drop down slightly to 98.

3. Disney Tops Earnings Expectations

Walt Disney (NYSE:DIS) could help the Dow tomorrow morning after handily beating Wall Street estimates on the top and bottom lines.

The company said after the bell it earned $1.48 a share on revenue of $14.31 billion.

Share rose nearly 2% in after-hours trading.

Highlighting the sparser earnings calendar tomorrow morning will be numbers from defense company Rockwell Collins (NYSE:COL).

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+