Investing.com - Here's a preview of the top 3 things that could rock markets Friday, April 20.
1. Fed Speak, Bond Yields in Focus
In what will be a light day for economic data, Federal Reserve officials’ Charles Evans and John Williams will wrap up a week of Fed speeches, which have mostly echoed the Fed’s narrative of gradual rate hikes and improving inflationary pressures.
Chicago Fed President Charles Evans will deliver a speech at 09:40 ET, and New York Fed President John Williams at 11:15 am ET.
Williams said on Tuesday that while an inverted yield curve “is a powerful signal of recessions” the current flattening of the U.S. Treasury yield curve is “totally normal” as the Fed continues to hikes rates. “ I don’t see the signs yet of an inverted yield curve,” he added.
The yield curve, however, steepened on Thursday as the U.S. 10Y bond yields rose above 2.9%, supporting an uptick in the U.S. dollar index amid optimism on the U.S. economy and inflationary pressures.
USD/CAD will be closely watched as Canada released its consumer price inflation data for March at 08:30 am ET.
2. Earnings: All Eyes on General Electric
Focus on earnings will continue to drive sentiment in stock markets as a slew of names report corporate earnings Friday.
Some of the more notable names due to report earnings before U.S. markets open include General Electric Company (NYSE:GE), Honeywell International Inc (NYSE:HON) and Schlumberger NV (NYSE:SLB).
An earnings report from General Electric, or GE, is expected to be the pick of the bunch. The firm’s guidance will be closely watched as firm has previously downplayed investor expectations that guidance will be cut.
GE’s share price slumped earlier this week after Goldman analyst Joe Ritchie said in a note to clients that a cut to the outlook is "almost a certainty."
3. OPEC Meeting, Baker Hughes Rig Count Data on Tap
The weekly instalment of drilling activity from Baker Hughes on Friday at 1:00 pm ET, will provide investors with fresh insight into U.S. oil production and demand after data last week showed the number of U.S. oil rigs rose for the second straight week.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Investors will also monitor the outcome from the joint Ministerial Monitoring Committee meeting slated for Friday expected to confirm OPEC and its allies continued compliance with the pact to curb production.
The production cut-agreement has nearly eliminated the glut in global crude supplies, which stood at just 12 million barrels above the five-year average in March, Reuters reported, citing a source familiar with the matter.
Crude futures retreated from a nearly three-and-a-half year high as traders appeared to take profit on the recent rally in oil prices.