Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Oil Faces More Supply Worries as Iran Sanctions Start
Oil prices will be closely watched tomorrow as the first round of U.S. sanctions against Iran go into effect.
Crude futures finished higher Monday as Washington confirmed financials sanctions on Iran would come into effect Tuesday at 12:01 a.m. ET (04:00 GMT).
The sanctions, which pale in comparison to the second round of sanctions slated for early November, aim to curb Iran's purchases of U.S. dollars, its trade in gold and other precious metals, and its buying of coal and industrial-related software.
The second round of sanctions, due three months from now, are expected to cripple Iran's energy infrastructure and oil exports, raising the risk of a global supply shortage, underpinning oil prices.
Morgan Stanley said it expected Iranian output to drop to 2.7 million barrels a day (bpd) by the fourth quarter, with more than 1 million barrels taken offline.
2. Dean Foods Could Give Some Trade Insight; Snap, Disney Report
As earnings season continues, albeit with fewer names reporting, Dean Foods (NYSE:DF) could be active when it issues numbers before the bell, as investors look for any more guidance on how trade battles are affecting companies.
Tyson Foods (NYSE:TSN) rose Monday on a strong quarterly profit, bouncing back from weakness last week when it cut its full-year profit outlook on trade concerns. The company reiterated those risks remain on its conference call.
After trading ends, the market will get results from Snap (NYSE:SNAP). Following two big social media disappointments from Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR), Snap’s active users will be the key to the stock movement. The company hasn’t managed to instill much confidence in Wall Street since its IPO.
Also reporting is Disney (NYSE:DIS), which is close to wrapping up its deal for 21 Century Fox’s media assets.
Investors will be looking, again, for big box office numbers to offset weakness in TV as it competes with streaming services.
3. Small Business Optimism, JOLTS Data Arrive
The economic calendar is fairly light. The market will have plenty of time before the open to digest the latest measure on small business sentiment when it arrives at 6:00 AM ET (10:00 GMT).
The NFIB will report its small business optimism index for July. The index came in at 107.2 for June, near the highs for the year.
At 10:00 AM ET (14:00 GMT), the Bureau of Labor Statistics releases its job openings and labor turnover survey (JOLTS) data on job openings from June.
On average, economists expect that job openings rose to 6.74 million, although it’s unlikely a miss or beat will move stocks much given the reaction to the employment report on Friday.
The market appears satisfied for now that the economy is strong, but not hot enough to increase the pace of interest rate rises.