Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Nvidia Shares Fall on Weak Guidance
Chip stocks could face weakness tomorrow after Nvidia issued softer-than-expected guidance when it released quarterly results after the bell.
The company said it expected revenue in the current quarter to be $3.25 billion, lower than Wall Street expectations of $3.34 billion. Nvidia (NASDAQ:NVDA) stock fell more than 5% after hours.
Nvidia noted significant weakness in its cryptocurrency mining business.
“Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward,” the company said in a statement.
Deere (NYSE:DE) is the lone major company reporting earnings before the bell tomorrow. Analysts are looking for a profit of $2.73 per share on revenue of about $9.2 billion.
But more of interest to the broader market would be any insight into how the trade battle with China is affecting demand for the company’s equipment and costs.
White House economic advisor Larry Kudlow confirmed Thursday that Washington and Beijing will resume trade talks by the end of August, leading to hopes that the world’s two largest economies will begin to tone down tit-for-tat tariffs and avoid a global economic meltdown.
2. Consumer Confidence in the Crosshairs
Consumer sentiment will be the highlight of the economic calendar tomorrow.
The University of Michigan releases its preliminary measure of August consumer sentiment at 10:00 AM ET (14:00 GMT).
Economists expect that the index rose to 98.1 from 97.9 in July.
Fed heads will likely be looking at the report’s inflation expectations component, which was at 2.9% last month.
The consumer is showing strength if the latest batch of retail earnings are anything to go by. Walmart (NYSE:WMT) was the latest to post very strong numbers, sending its stock soaring today.
3. Crude Set for Another Losing Week
Oil trading has been active this week and crude oil prices are on track for third-straight weekly drop, despite rising today. Expectations for steeper losses of Iran crude has struggled to stem the slide in prices.
Crude futures recouped some of their losses from a day earlier on hopes about U.S.-China trade talks. China is the world's largest oil importer.
But prices fell to a two-month low on Wednesday as inventories unexpectedly rose and a U.S.-Turkey feud fueled fears of contagion in emerging markets dimming the outlook for oil demand.
At 1:00 PM ET (17:00 GMT) tomorrow, Baker Hughes will report its weekly rig numbers. The numbers of U.S. oil rigs in operation was at 869 last week.