Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Will Trump React to Fed Minutes?
The market failed to find direction at the end of trading today as the Federal Reserve’s conviction that the economy can withstand quite a few more rate hikes (as evidenced by the minutes) spooked buyers.
While not a rebuttal to President Donald Trump calling the Fed and its rate hikes his biggest “threat” -- these minutes are from a meeting last month, after all – it’s clear that policymakers and the chief executive are at loggerheads.
Another tweet or comment from the president against the FOMC could further dent market confidence tomorrow.
The longer-term concern for investors is that if the Fed changes course it will now be seen as bowing to pressure, leading to more uncertainty about future moves and who is really calling the shots.
And if the Fed pauses for a few more meetings, it runs the risk of having to slam on the brakes hard if overheating starts.
2. Travelers Headlines Before-the-Bell Earnings
In earnings ahead of trading tomorrow, Dow component Travelers (NYSE:TRV) is one of the bigger names reporting.
On average, analysts expect that the insurance company earned $2.26 per share on revenue of $7 billion.
As with all insurers, growth of premiums will be key to results. But with interest rates climbing and bond yields rising, it will be important to see if the company’s investment revenue comes in strong.
Philip Morris International (NYSE:PM) also reports its latest quarterly numbers and investors will be looking for any sign that the company is moving closer into investing in the hot cannabis section.
Legalization of cannabis in Canada began today.
Meanwhile, more financial companies weigh in after the bell, with PayPal (NASDAQ:PYPL) and American Express (NYSE:AXP) on tap.
3. Jobless Claims, Philly Fed Arrive
In economic indicators, the weekly jobless claims numbers come in at 8:30 AM ET (12:30 GMT).
Economists expect that claims for first-time unemployment benefits dipped slightly to 211,000 from 214,000 the week before.
Labor numbers have been consistently good, with this week’s latest JOLTs report showing job openings at a record level.
At the same time the Philadelphia Fed’s manufacturing index is issued. Manufacturing activity is forecast to have dipped in October to a measure of 19.7.