Investing.com - The market is at the point where bad news is actually good news.
Stocks rallied today following a pretty dismal ADP report on private payrolls.
ADP (NASDAQ:ADP) said its measure of nonfarm payrolls rose by just 27,000 in May, well shy of the 180,000 economists were predicting. And that was music to investors’ ears as tepid jobs numbers may give the Federal Reserve just the excuse it needs to cut rates.
The market is now pricing in more than a 50% chance rates will be lower after the FOMC’s meeting in July, according to Investing.com’s Fed Rate Monitor Tool.
Tomorrow there will be the weekly jobless claims figures as the market moves toward Friday’s big May employment report.
An unexpected jump in jobless claims could further bolster the case for a rate cut and give bulls another reason to keep buying.
Here are the three things that could rock the market tomorrow.
1. ECB's Draghi to Turn up Dovish Rhetoric?
With the European Central Bank widely expected to keep interest rates on hold at Thursday's meeting, investor attention will likely hone in on ECB President Mario Draghi's presser.
The central bank chief is expected to adopt dovish language and likely push guidance on rates further out until next year, or, in a more dovish move, the bank's tightening bias could be axed.
Investors will also be keen for an update on the new targeted longer-term refinancing operations (TLTRO) program, while projections about growth and inflation will also garner attention.
2. Initial Jobless Claims Expected to Remain Unchanged, Trade Balance to Widen
The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended June 1. Economists forecast that initial jobless claims remained unchanged at 215,000.
With the U.S. at risk of entering a trade war on multiple fronts, trade data will likely be closely watched.
The Bureau of Economic Analysis will issue the April trade balance numbers at 8:30 AM ET (12:30 GMT).
On average, economists expect that the trade deficit for January widened to $50.50 billion.
3. Zoom Video Set to Deliver Maiden Quarterly Results
Video conferencing software company Zoom Video Communications (NASDAQ:ZM) is to release its first set of results as a public company on Thursday after the markets close.
The company is expected to post earnings of 1 cent a share on revenue of $111.7 million, according to Briefing.com.
The company went public in April, surging to a high of $91 before paring gains, with many analysts suggesting that optimism concerning the future prospects of the company had been baked into the rally.
JPMorgan said that while the stock appeared expensive, the technology "will help fundamentally change the way that business is conducted going forward."
Zoom, unlike some recent IPOs hitting the market including Pinterest (NYSE:PINS), Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), is a profitable company. The company reported $7.58 million in net income last year on revenue of $330.5 million.
Analysts have touted Zoom as a potential leader in video conferencing over rivals like LogMeIn.
Zoom closed at $78.04, down 0.89%, but remains well above its IPO price of $36.