Investing.com - Here are the top 3 things that could rock markets tomorrow.
1. Fed Fallout to Continue?
Following the late selloff in markets Wednesday, Fed Chairman Jay Powell's unexpected hawkish remarks are likely to continue to have an impact Thursday as traders rein in expectations for future rate cuts.
Powell said the Fed's decision to cut rates was not the beginning of a long series of rate cuts, throwing into doubt investor expectations that more easing would follow. He clarified that Wednesday's cut was not a one-time move.
Particular attention will be on the bond market, where expectations of future easing dissipated.
And investors will also be wary of President Donald Trump, who tweeted Wednesday afternoon, "As usual, Powell let us down." What the President wanted, he said in his tweet, was a signal the Fed was starting "a lengthy and aggressive rate-cutting cycle which would keep pace with China, The European Union and other countries around the world."
Trump has suggested in the past he might replace Powell. Powell has said he can't be fired and plans to serve out his four-year term as Fed chairman.
2. General Motors Earnings Pull In
General Motors (NYSE:GM) is set to report earnings before markets open on Thursday.
Ahead of the earnings, the automaker provided a dour update that put the brakes on performance expectations for the quarter, reporting a 1.5% decline in deliveries amid weaker sales of its volume-selling Chevrolet brand.
GM is expected to report earnings of $1.43 a share on revenue of $36.11 billion.
Guidance will also come into focus, with GM in April saying it was on track to deliver full-year adjusted earnings per share between $6.50 and $7.
GM was off a modest 0.2% on Wednesday. It finished July with a 4.7% gain and is up 20.6% on the year.
3. U.S. Manufacturing, Labor, Construction Data on Watch
At 8:30 AM ET, the Labor Department releases its weekly jobless claims report: the estimate of the number of individuals who filed for unemployment insurance for the week ended July 27.
Economists forecast that initial jobless claims increased to 212,000 from 206,000 the week before.
The data comes ahead of the all-important nonfarm payrolls report due Friday.
At 10:00 AM ET, the Institute of Supply Management will release its measure of manufacturing activity for July.
The ISM manufacturing purchasing manager’s index (PMI) is predicted to have increased to a reading of 52 from 51.7 in its June report.
Construction spending data will follow on the heels of the manufacturing data, with economists forecasting spending rebounded 0.8% in June from the prior month.