Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Beige Book, Fed Speakers on Tap
The Federal Reserve’s beige book at 2.00 p.m. ET, a report that includes anecdotal evidence on the health of the US economy from 12 regions, will be closely watched for any subtle change in commentary on inflation following hawkish language seen in the Fed’s March meeting minutes.
The minutes of the Federal Reserve’s March meeting showed that policymakers agreed that gradual rate hikes would be needed as inflation is expected to reach the Fed’s 2% target.
The Federal Reserve is widely expected to leave its benchmark rate unchanged at its May meeting but increase rates at its subsequent meeting in June.
Speeches by FOMC Member Bill Dudley at 8.30 a.m. ET and 3.15 p.m. ET and FOMC Member Randal Quarles at 4.15 p.m. could offer additional clues on monetary policy.
The dollar pared some of its gains against a basket of major currencies Tuesday despite easing geopolitical tensions and positive economic data, pointing to underlying strength in the U.S. economy.
2. EIA Inventory Data in Focus
Inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show a draw in U.S. crude stockpiles.
Analysts forecast crude inventories fell by about 1.4 million barrels in the week ended April 13.
U.S crude output will also be closely watched after International Energy Agency Director Faith Birol warned that if oil prices remained elevated, U.S. shale producers could ramp up output faster than anticipated.
Crude oil futures settled higher on Tuesday at $66.52 a barrel, up 30 cents, buoyed by the prospect of a draw in US crude supplies.
3. IBM to Weigh on Dow Jones?
Shares of IBM fell more than 5% in aftermarket hours as the technology giant posted earnings and revenue that topped expectations but guidance for the full year 2018 fell short of consensus.
IBM posted earnings per share of $2.45 on revenue of $19.1 billion Tuesday after the close. That was above consensus estimates for earnings per share of $2.42 on revenue of $18.79 billion.
For the full year 2018, ‘Big Blue’ maintained its guidance for non-GAAP earnings of $13.80 per share, missing Wall Street estimates of $13.84 per share.
International Business Machines (NYSE:IBM) closed 1.91% at $160.91 on Tuesday but fell 5.51% to $152.04 in afterhours trade. The 5.51% drop in aftermarket hours represents a roughly 57 point drop in the Dow as the tech giant has a 4.42% weighting on the Wall Street index.
The Dow Jones Industrial Average closed at 24,786.63, up 231.59 points, or 0.87%.