Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Deluge of U.S. Data on Tap
A raft of U.S. economic data including a key inflation print scheduled for Thursday are expected to provide traders with fresh clues on the strength of the U.S. economy as focus shifts to domestic issues with a jobs report on the horizon.
The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance due 08:30 am ET for the week ended May 25, expected to show jobless claims remained unchanged at 234,000 from the prior week. Initial jobless claims data comes a day ahead of nonfarm payrolls data due Friday.
Growth in consumer spending for April due 08:30am ET, which accounts for more than two-thirds of U.S. economic activity, is expected to remain steady at 0.4%.
The Core Price Consumer Expenditure (PCE) Index due 8:30 am – the Fed’s preferred measure of inflation – is expected to show 0.1% growth for April and 1.8% growth year-on-year, down slightly from 1.9% the prior month.
The PCE deflator, a measure of inflation based on changes in personal consumption, is expected to show a 2% increase for the year to the end of April.
The Chicago Purchasing Managers' Index (PMI) due 09:45 is expected to show a reading of 58.2, up from a prior reading of 57.6. A reading above 50 indicates expansion of the manufacturing sector; a reading below indicates contraction.
Pending Home Sales due 10:00 am ET, meanwhile, is forecast to show 1.1% growth for April following a 0.4% rise in the prior month.
The dollar fell Wednesday against its rivals after EUR/USD rebounded as Italy’s designate Prime Minister Carlo Cottarelli was reportedly mulling “new possibilities” to form a government, easing weeks of panic selling in the single currency.
2. U.S. Crude Supplies to Rise for Second-Straight Week?
Inventory data from the Energy Information Administration (EIA) on Thursday is expected to show a second-straight weekly build in U.S. crude stockpiles.
Analysts forecast crude inventories rose by about 2.214 million barrels in the week ended May 26.
Crude oil prices found their footing on Wednesday amid a Reuters report, citing a Gulf source, that OPEC and its allies would stick to the global production-cut agreement.
Crude oil futures settled 2.2% higher at $68.21 a barrel.
3. Costco Earnings in Focus
Costco is slated to reveal fiscal third-quarter results after the market closes on Thursday.
Costco is expected to report earnings of $1.69 per share on revenue of $31.84 billion.
As subscription sales make up the bulk of retailer’s earnings, membership growth will likely be one the key metrics in focus. While the membership renewal rate is also expected to garner investor attention.
Sales growth, meanwhile, is forecast to remain solid after the retailer reported a sharp uptick in sales in March and April.
Shares of Costco Wholesale Corporation (NASDAQ:COST) closed at $199.64, up 1.47%.