Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. ISM Manufacturing, Employment Data on Tap
A raft of top-tier economic data kicks off the new month as investors look ahead to ISM manufacturing and employment data, while the Federal Reserve Open Market Committee (FOMC) is slated to get its two-day meeting underway.
Economist forecast the U.S. ISM Manufacturing Purchasing Managers Index due 10:00 am ET to show a reading of 58.6 for April, slightly lower than the 59.3 reading seen in March. While the ISM Manufacturing Employment Index is expected to show a reading of 57.0.
The FOMC two-day meeting, meanwhile, is slated to get underway ahead of an interest rate decision on Wednesday. Inflation has neared the central bank’s target of 2% in the run up to the interest rate decision. Yet, the central bank is widely expected to leave rates unchanged.
Upbeat inflation, however, failed to support a rebound in U.S. bond yields as the 10Y US Treasury yield remained below 3%.
The dollar rose against a basket of major currencies on Monday, supported by an ongoing slump in both GBP/USD and EUR/USD.
2. API Data to Show a Surprise Build for Second Straight Week?
Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute (API) due Tuesday after data last week showed an unexpected build in U.S. crude stockpiles.
The American Petroleum Institute reported last Tuesday crude oil stockpiles rose by 1.099 million barrels. The Energy Information Administration’s weekly report, however, showed a build of 2.170 million barrels, nearly double the API figure.
Crude oil futures settled higher on Monday but pared some gains heading into settlement despite the growing prospect of new U.S. sanctions against Iran.
3. Apple Earnings Eyed
Shares of Apple closed higher ahead of the release of fiscal second-quarter earnings on Tuesday as investors cheered reports that the iPhone maker is set to announce a bumper share buyback programme.
Sentiment on Apple's earnings , however, remained largely negative after a slew of downgrades from analysts, warning investors that the firm’s flagship Model X iPhone, which fetches prices upwards of $1,000, is set to report subdued performance.
In anticipation of weaker iPhone sales - which makes up the about 62% of group sales - Apple is reportedly set to soften the blow by buying back up to $100 billion of shares.
Apple is expected to report earnings of $2.70 per share on $61.19 billion in revenue.
Shares of Apple Inc (NASDAQ:AAPL) closed at $165.26, up 1.81%.