Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Consumer Inflation, Jobless Claims on Tap
The fallout from the United States’ decision to leave the Iran nuclear deal did little to sway sentiment on risker assets as a risk-on rally emerged across U.S. stocks, supported by a sharp rise in the oil majors.
Consumer inflation data will be in focus on Thursday after a PPI report on Wednesday fell short of economists' estimates.
Economists expect the core consumer price index (CPI) due 08:30am ET, to remain unchanged at 0.2%, while core year-on-year CPI is expected show a rise of 2.2% from 2.1% in March.
The subdued PPI data on Wednesday scaled back investor expectations for a strong CPI print as consumer prices were likely weighed by falling input costs.
The Labor Department, meanwhile, releases its weekly count of the number of individuals who filed for unemployment insurance due 08:30 am ET for the week ended May 4, expected to show jobless claims rose to 219,000 from 211,000 the prior week.
The dollar was flat against its rivals on Wednesday as a sharp uptick in the Canadian dollar, stifled the greenback’s upside momentum.
GBP/USD will likely play a role in dollar direction on Thursday as the Bank of England is widely expected to stand pat on interest rates following a recent spate of softer U.K economic data.
2. Natural Gas Inventories, Ongoing Crude Rally in Focus
Natural gas prices traded roughly unchanged on Wednesday ahead of data expected to show an increase in natural gas storage for the second week in a row.
The Energy Information Agency’s weekly natural gas storage report is expected show gas storage rose by 91 billion cubic feet last week.
Natural gas prices are expected to remain flat for at least the next few weeks, according to National Alliance.
“Natural gas will likely remain below $3.00 in 2018 on a continued robust supply ramp despite very low storage,” National Alliance said.
The ongoing fallout from the United States’ decision to abandon the Iranian nuclear deal will likely continue to dominate direction in oil prices. The impact to global crude supplies of U.S. sanctions on Iran remained uncertain as Saudi Arabia reportedly pledged to plug the potential gap in supplies.
U.S. Treasury Secretary Steven Mnuchin said Tuesday major oil price hikes were unlikely because some countries were willing to increase output to offset potential losses.
Crude futures settled 3% higher as crude supplies fell for the first time in three weeks.
3. The New Kid on the Block: Dropbox Earnings Eyed
Dropbox is slated to report its maiden first-quarter earnings following its debut on the stock market less than two months ago in late-March.
Analysts expect the cloud company to report earnings of 4 cents a share and GAAP losses of $2.16 a share on revenue of $309.2 million.
Average revenue per user (ARPU) – an important metric that indicates margin growth – will likely garner the bulk of investor attention.
Analysts expect Dropbox to report first-quarter ARPU growth of 2% to $113.20, while the cloud company is expected to report 140,000 new user additions for the quarter, which would take its total paying user count to 11.12 million.
Dropbox Inc (NASDAQ:DBX) closed at $31.40, up 3.87% on Wednesday.