Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Retail Sales, Housing Data, Fed Speakers on Tap
Retail sales, housing data and a duo of Fed speeches due Tuesday will provide market participants with insight into the strength of the U.S. economy and insight into the Fed’s thinking on monetary policy.
Speeches by Fed officials’ Robert Kaplan at 8:00AM ET, and John Williams at 1:00PM ET will likely be monitored for clues on whether Fed policymakers remained optimistic on inflation given the duo of bearish inflation reports seen last week.
Retail sales growth data due 8:30AM ET is forecast to show a 5% increase for March after a rebounding in February. The retail sales control group – which has a larger impact on U.S. GDP – is expected to rise 0.4%.
A monthly index of builder sentiment from the National Association of Home Builders due 10:00AM ET is forecast show a reading of 70 for May, up from 69 in April. A reading above 50 is considered positive.
The dollar rose against a basket of major currencies on Monday, recovering from an early-session slump, as the EUR/USD gave up most of its gains.
2. API Data, Middle East Tensions in Focus
A fresh batch of crude oil inventory data from the American Petroleum Institute (API) is slated for Tuesday after data last week showed a fall in weekly U.S. crude stockpiles for the first time in three weeks.
The American Petroleum Institute reported last Tuesday crude oil stockpiles fell by 1.850 barrels.
Oil prices made a positive start to the week after OPEC said the glut in global crude supplies has been nearly eliminated while escalating Middle East tensions also lifted sentiment.
Crude oil futures on Monday settled higher at $70.96 a barrel, up 26 cents.
3. Earnings, Casino Stocks Eyed
Shares of casino companies will likely be in focus again on Tuesday after rallying sharply on Monday.
The rally emerged after the U.S. Supreme Court struck down a federal law that banned sports gambling, potentially paving the way for states across the U.S. to legalise sports betting.
Scientific Games Corp (NASDAQ:SGMS), Boyd Gaming Corporation (NYSE:BYD), MGM Resorts International (NYSE:MGM) and Caesars Entertainment Corporation (NASDAQ:CZR) rose sharply following the decision.
Wynn Resorts Limited (NASDAQ:WYNN) and Las Vegas Sands Corp (NYSE:LVS) fell, however, as their operations are more leveraged to Nevada, whose monopoly on legalised sports betting will likely cease to exit under the new legislation.
Elsewhere, Home Depot Inc (NYSE:HD) will likely be in focus as the home improvement leader reports earnings on Tuesday before the markets open.
Home Depot is expected to report earnings of $2.06 per share on revenue of $25.21 billion.