Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Consumer Confidence, Fed Speak, Richmond Fed Manufacturing in Focus
As fears of a U.S.-China trade war have eased somewhat, a pair of economic reports on consumer confidence and regional manufacturing activity is expected provide investors with an insight into the underlying strength of the U.S. economy.
Economist forecast the Conference Board’s consumer confidence gauge to show a reading of 131.2 for March from 130.8 in the previous month.
The Richmond Fed manufacturing index for March is expected to fall to 23 from a reading of 28 in February.
A speech by Atlanta Federal Reserve Bank President, Raphael Bostic, at 11:00 a.m. EST is also expected to draw investor focus after the Fed policymaker said Friday he would support further rate hikes this year if the economy continued to strengthen.
U.S. stock markets rebounded sharply on Monday with the Dow Jones Industrial Average closing more than 600 points higher amid a WSJ report indicating that China and the U.S. “have quietly started negotiating” to improve U.S. access to Chinese markets.
There is growing belief among market participants that President Donald Trump’s recent move to introduce tariffs were not intended to spark a trade war but rather gain leverage to negotiate better trade terms with crucial trading partners.
Co-Chief Investment Officer of Bridgewater Associates Ray Dalio said President Donald Trump's recent introduction of tariffs could be a negotiation tactic and a political move that needn't mean a trade war is likely.
Dalio added that the most likely scenario is a progression toward a negotiation on some trade agreements that will look like victories for Trump, so tensions will subside and the markets will like it.
"At such times, I believe that it is especially important to keep one's portfolio liquid (to be flexible) and diversified (to not have concentrated risks)," Dalio wrote in a LinkedIn post.
2. Build in Crude Supplies to Resume?
Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute due Tuesday after data last week showed crude inventories unexpectedly fell.
The American Petroleum Institute reported crude oil stockpiles fell by 2.739 million barrels for the week ended March 23. That closely matched the 2.622 million barrel decline reported by the Energy Information Administration during the same period.
Crude oil futures made a subdued start to the week as a combination of profit taking and renewed focus on rising U.S. output weighed. But crude oil prices remained supported as traders continued to bet that Middle East geopolitical risks could lead to a disruption in supplies.
The risk of a disruption to global inventories has increased following President Donald Trump’s decision to promote John Bolton to National Security Advisor, given the latter’s hawkish views on critical issues like the Iran nuclear deal.
3. Facebook Rebound to Continue?
Facebook (NASDAQ:FB) briefly fell into bear market territory – down 20% from its recent high – but ended the day in positive territory paring a more than 5% intraday slump.
The fall in Facebook came as the fallout from the Cambridge Analytica scandal intensified after the Federal Trade Commission said Monday it takes "very seriously recent press reports raising substantial concerns about the privacy practices of Facebook."
"The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers," Tom Pahl, acting director of the FTC's Bureau of Consumer Protection, said. "Foremost among these tools is the enforcement action against companies that fail to honor their privacy promises."
The rebound in Facebook coincided with a similar move in other tech names, supporting a 3% rally in the tech-heavy NASDAQ Composite.
Dropbox Inc (NASDAQ:DBX), meanwhile, continued its bright start to life as a publicly-listed company, rising nearly 7% to $30.45.