Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Will Pending Home Sales Buck the Housing Trend Again?
Economic indicators are likely to have the most influence on the market tomorrow, with more data on the of-late struggling housing sector arriving.
The National Association of Realtors reports its pending home sales figures for July at 10:00 AM ET (14:00 GMT).
Sales are expected to have risen 0.3%, compared with a 0.9% rise in June, according to economists.
Pending home sales were one of the few recent bright spots when it comes to housing numbers, rising more than expected in the last report.
The second measure of second-quarter GDP will be reported at 8:30 AM ET (12:30 GMT), but little change is expected from the advance measure of 4.1%.
Core PCE prices for the quarter are expected to stay at the previously measured rise of 2%.
2. Jack Daniels Reports Numbers; Retail Earnings Continue
Liquor company Brown-Forman (NYSE:BFb) reports earnings before the bell tomorrow.
On average, analysts are looking for the maker of Jack Daniels and Herradura tequila to report earnings of 39 cents a share on sales of about $761 million for the quarter.
What may be of most interest to Wall Street, though, is whether the company has anything to say on the conference call about investing in or expanding into the cannabis business.
Cannabis stocks have been rallying since beverage company Constellation Brands (NYSE:STZ), which owns Corona beer, said it would invest a further $4 billion in Canopy Growth (NYSE:CGC), Canada’s top cannabis producer.
Brown-Forman said late last year it was looking at the sector, but did not outline any specific plans.
Among retailers reporting results ahead of trading are Dick’s Sporting Goods (NYSE:DKS), Chicos FAS (NYSE:CHS) and American Eagle Outfitters (NYSE:AEO).
3. Oil Inventories Should Give Market More Direction
It’s been a push-and-pull week for oil prices so far, but tomorrow’s weekly government inventory data should give oil and energy stock traders a little more definitive direction.
The EIA is expected to report U.S. crude stockpiles fell by just 686,000 barrels last week, well below the 5.836 million barrel decline in the prior week at 10:30 AM ET (14:30 GMT).
Distillate stocks, which include heating oil, and gasoline inventories are expected to show an increase in weekly inventories, but lower than the build seen the previous week.
There are persistent concerns in the energy market about what will happen to supply when U.S. sanctions on Iranian oil exports go into effect in November.
But the global market isn't likely to see pressure when that happens, as other OPEC members would raise output, Pimco said.
"It's estimated that upwards of 1 million barrels of daily output won't be available on the market. But other OPEC members are liable to increase their output by some 750,000 barrels," Pimco added.