Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. A Day for Individual Stocks
Tomorrow could be the toughest day for Wall Street to find direction in what is usually a quiet time for stocks.
While trade concerns remain at the forefront, meetings with China and the U.S. don’t start until Wednesday. And the economic calendar is empty apart from the Redbook numbers on same-store sales.
Instead, individual stocks may generate the most interest. Tesla (NASDAQ:TSLA) bounced back and forth Monday. And CEO Elon Musk still hasn’t given up tweeting, which has become a key thing to trade the stock on. In fact, there was chatter of Tesla getting some buying support after Musk simply unfollowed his girlfriend Grimes.
And Netflix (NASDAQ:NFLX) shares were strong after being down more than $100 from their all-time highs. The market will be interested to see if the move is more about short-covering or whether the stock is regaining some momentum.
2. Retail and Homebuilder Earnings Scheduled
Despite the late-August market doldrums there should be enough earnings reports to keep investors busy before the bell.
There will be more numbers from the retail sector. Department store chain Kohl’s (NYSE:KSS) reports ahead of trading, as does discount retailer TJX (NYSE:TJX). Urban Outfitters (NASDAQ:URBN) releases earnings after the market closes.
Investors will also get more insight into the U.S. housing market when Toll Brothers (NYSE:TOL) reports quarterly numbers.
Housing has been a weaker spot in the otherwise very strong U.S. economy. Last week July housing starts fell shy of economists’ forecasts, although building permits were stronger.
Shares of Toll Bros. have been on a downward trend since the company missed profit expectations when it reported on its previous quarter in May.
3. Watch for Dollar Volatility
While stocks may not have big catalysts and the economic calendar might be light, there will still be plenty of things to keep the dollar active.
Traders will be positioning their currency portfolios ahead of the aforementioned China and U.S. trade talks. There will also be minutes from the last Federal Reserve meeting out Wednesday. And Fed Chairman Jerome Powell will speak from Jackson Hole, Wyo. on Friday.
There will also be continued reverberations from the Turkish lira USD/TRY crisis, which shows no signs of abating.
Standard and Poor’s and Moody’s cut Turkey’s sovereign debt rating further into junk territory on Monday.
And there is also the possibility of jawboning (or jawtweeting?) from President Donald Trump. Trump on Friday complained to wealthy donors in the Hamptons that he expected Powell to be a cheap-money Fed chief, Bloomberg reported.