Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Day Ahead: Top 3 Things to Watch

Published 10/01/2019, 03:40 PM
Updated 10/01/2019, 05:25 PM
© Reuters.
BBBYQ
-
LEN
-
CL
-

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

1. U.S. Private Jobs in Focus

Ahead of Friday’s nonfarm payrolls due Friday, traders will look to ADP’s measure of private-sector employment for a readthrough on the labor market.

The report comes at 8:15 AM ET (12:15 GMT).

Economists, on average, expect that private nonfarm payrolls rose by 140,000 last month, down from a gain of 195,000 in August.

Fed speak is also on the calendar with Philadelphia Fed President Patrick Harker set to deliver a speech at 9 AM ET.

2. Crude Inventories to Build for Third-Straight Week?

The Energy Information Administration (EIA) releases its petroleum report on Wednesday, with economists expecting a third-consecutive build in domestic crude supplies.

The EIA is expected to report a build in crude stockpiles of about 1.57 million barrels.

Crude oil futures gave up gains to settle at $53.62 a barrel, down 0.8% despite reports that production in the U.S. and Russia declined during the third quarter.

Many analysts have downplayed expectations for a ramp-up in oil prices, as Saudi Arabia has restored capacity following the Sept. 14 attack, which reportedly forced the kingdom to shut down half of its crude production, or roughly 5.7 million barrels a day.

3. Bed Bath & Beyond; Lennar Earnings in Focus

Bed Bath & Beyond (NASDAQ:BBBY) is set to report earnings after markets close on Wednesday. The company has rung the changes at both board and management level amid pressure from activist investors. There's speculation a new CEO could be announced tomorrow as well.

But the changes have done little to boost investor optimism, with analysts expecting the company to reap the benefits over the next two years rather than in the immediate short term.

Wedbush said it expects earnings to stabilize, or even grow, over the next two years as the company implements a host of changes, including store remodels, private-label brand launches and the sale of non-core assets and real estate.

“Second quarter results are likely to fall short of consensus expectations that are not aligned with company guidance, and 2019 guidance could be withdrawn as the company clears inventory, digests list 4 tariffs (the fourth list of good from China subject to tariffs) and gives the new CEO time to evaluate the business,” Wedbush said.

The company is expected to report earnings of 29 cents on revenue of $2.76 billion, according to consensus estimates from Investing.com.

In the housing sector, Lennar (NYSE:LEN) will report earnings before the market opens, with analysts expecting earnings of $1.32 on revenue of $5.48 billion.

Home-buying has been supported by a favorable backdrop of low mortgage rates after the Fed cut its benchmark rate twice this year.

Latest comments

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.