Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Facebook Misses on Revenue
The tech sector faces tough going Thursday morning after Facebook reported second-quarter revenue that was shy of what Wall Street was expecting.
Facebook (NASDAQ:FB) stock fell nearly 10% in after-hours trading immediately after the numbers hit the tape postmarket Wednesday.
Facebook said total sales for the three months ended June 30 were $13.23 billion. Advertising sales were $13.038 billion. That was below the $13.35 billion analysts, on average, forecast.
Earnings came in at $1.74 per share for the quarter, topping estimates of $1.72 per share.
Monthly active users were 2.23 billion as of June 30, up 11% year over year. Daily active users were 1.47 billion.
The results will likely put the brakes (for a moment) on the exuberance in the tech sector seen after Google (NASDAQ:GOOGL) parent Alphabet’s strong quarter.
2. Big Energy (Including Coffee) Names to Report
Among the big names reporting earnings before the bell Thursday are energy behemoths ConocoPhillips (NYSE:COP) and Royal Dutch Shell (LON:RDSa).
Drugmaker Bristol-Myers Squibb (NYSE:BMY) also reports, as does Mastercard (NYSE:MA) and low-cost airline Southwest Airlines (NYSE:LUV).
But don’t be surprised if a chronically sleep-deprived Wall Street takes a keen interest in Dunkin Brands (NASDAQ:DNKN), not just for the coffee stats, but the state of U.S. consumer.
Analysts expect that Dunkin’s second-quarter earnings rose to 74 cents a share on revenue of more than $344 million. Apart from the headline numbers, investors will concentrate on comparable-store sales. The company reported a surprise drop in that metric in the first quarter. Also in focus will be plans for Dunkin to expand its footprint with more store opening.
Starbucks (NASDAQ:SBUX) reports earnings after the bell Thursday. The company already disappointed the market in June with tepid yearly comparable sales guidance and a plan to close 100 more stores than originally planned.
3. Durables Goods, Jobless Claims Highlight Economic Indicators
On Thursday’s economic calendar, durable goods numbers stand out.
June durable goods orders are expected to post a 3% rise for June, while economists forecast core orders, which exclude transportation, posted a 0.5% rise. Core orders have been volatile of late and posted a surprised decline in May.
A day after the meeting on trade between the U.S. and EU in Washington, the latest numbers on the goods trade balance arrive, with economists expecting a widening of that deficit for June.
And initial jobless claims for the week ended July 20 are forecast to have increased to 215,000.