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Day Ahead: Top 3 Things to Watch

Published 12/10/2018, 03:34 PM
Updated 12/10/2018, 04:44 PM
© Reuters.

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Wholesale Inflation Numbers Arrive

It’s time for inflation data again, starting off, as usual, with the latest on wholesale prices tomorrow.

The Labor Department will release the producer price index (PPI) for November at 8:30 AM ET (13:30 GMT).

Economists expect that the PPI remained flat last month. The core PPI, which excludes volatile food and energy prices, is expected to post a 0.1% drop for November.

Inflation gauges have looked tamer of late, adding to the argument that the Federal Reserve can back off its plan for steady rate hikes next year.

2. Dave & Buster’s, American Eagle Report Results

In a very light earnings calendar this week, attention tomorrow will be on results after the bell.

Restaurant and arcade chain Dave & Buster’s Entertainment (NASDAQ:PLAY) will be hoping for another strong report like the one in mid-September when it lifted guidance and shares spiked. The stock rallied short term after that, but has since been brought down by the broader selloff, trading lower than it was three months ago.

Analysts, on average, predict a profit of 24 cents per share on revenue of more than $277 million.

Clothing retailer American Eagle Outfitters (NYSE:AEO) will also weigh in after the bell, with its stock down more than 20% from three months ago.

The Street is looking for a profit of 48 cents per share, with sales of about $1 billion.

3. Oil Market Dismissing OPEC’s Plans

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While the stock market experienced whipsaw action today, the oil market was all about selling.

Crude oil prices settled down 3% and then kept tumbling, with WTI prices around $50.50 per barrel in late trading. That, in turn, kept energy stocks lower.

With the OPEC+ production cut now decided, there seems little to get in the way of oil bears tomorrow. Traders will likely be positioning ahead of Wednesday U.S. inventories data.

Strong U.S. production has taken away a lot of influence by OPEC, but the market will be watching geopolitical headlines to see any signs of further impediments to global economic growth on the U.S.-China trade and Brexit fronts.

Latest comments

Still thinking SPX would drop or not
The oil supports the people that produce refine and find etc. they need to have a price that supports that. The price is to low if you use it you should be paying for it.
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