Day Ahead: Top 3 Things to Watch
Published Nov 08, 2018 04:13PM ET
Updated 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).
Get The News You Want
Written By: Investing.com
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.