Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Trade Ball in Canada’s Court
Following today’s strong market performance across the board, investors will be looking for any updates to further progress in U.S. trade deals.
With the U.S. and Mexico agreeing to a deal, the pressure is now on Canada, whose participation in a new trilateral deal to replace the North American Free Trade Agreement (NAFTA) is not guaranteed.
U.S. President Donald Trump said he planned to talk to Canadian Prime Minister Justin Trudeau soon, according to Reuters, which means that news on progress or tweets from Trump could swing the markets at any time.
In addition, Mexico President Enrique Pena Nieto could also talk to Trudeau. Both sides met Sunday and expressed support of the three-party agreement.
China remains the wild card, as Trump downplayed a near-term progress in the ongoing trade battles between the world’s top two economies.
2. Can Best Buy Keep Its Rally Going?
Best Buy (NYSE:BBY) reports earnings before the bell, with shareholders hoping it can keep the retail rally going.
Despite the talk about Amazon’s dominance in all things retail, any talk of Best Buy’s demise would be greatly exaggerated as far as the stock market is concerned.
Wall Street analysts are predicting a rise in sales and profit from the year-ago period.
And investors have piled into Best Buy shares recently. The stock is up about 20% in the last three months.
Compare that with the SPDR S&P Retail ETF (NYSE:XRT), which is up about 10.5%, and the overall S&P 500, which gained about 8% over the same time period.
Also in retail, investors will get earnings from Tiffany & Co (NYSE:TIF).
3. Slight Drop in Consumer Confidence Expected
Along with retailer results, the market will get the latest figures on consumer confidence on Tuesday.
The Conference Board will release its consumer confidence measure at 10:00 AM ET (14:00 GMT).
On average, economists expect that the index for August dipped slightly from July to 126.8. The index has been above 120 for more than a year.
At 8:30 AM ET (12:30 GMT), the goods trade balance for July arrives, with economists predicting a slight widening of the deficit. At the same time the preliminary numbers for August wholesale inventories come out.