Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Planes, Trains and … Drugs
Among the host of companies reporting earnings tomorrow, numbers from a few airlines will be flying into view.
American Airlines (NASDAQ:AAL) will post fourth-quarter results, with analysts expecting a profit of $1.04 per share on revenue of about $11 billion.
The stock took a hit when the carrier issued lower unit revenue guidance for the fourth quarter on Jan. 10. But it has since recovered some, helped by solid results from United Continental (NASDAQ:UAL).
JetBlue Airways (NASDAQ:JBLU) will also report earnings tomorrow morning, and there will be numbers from discount rival Southwest (NYSE:LUV).
Railroad giant Union Pacific (NYSE:UNP) will report, which should give investors some idea of the impact the U.S. trade battles are having.
The stock hit a six-month nadir in late December, when pessimism about trade deals was highest, but has since recovered nicely and is up for the last three months.
On average, analysts predict UP earned $2.06 per share in the latest quarter and had revenue of more than $5.7 billion.
And drugmaker Bristol-Myers Squibb (NYSE:BMY) is on tap. The company is forecast to earn 84 cents per share on sales of more than $5.9 billion.
2. Jobless Claims, Markit PMI Arrive
On the economic calendar, the latest jobless claims numbers come in tomorrow at 8:30 AM ET (13:30 GMT).
Claims for first-time unemployment benefits for the week are seen rising to 220,000 from 213,000 the week before.
In addition, Markit will issues its January PMI measures at 9:45 AM ET (14:45 GMT).
The services PMI is forecast to edge down to 54.1 for the month, with the manufacturing PMI ticking down to 53.5.
3. Products Numbers in Focus as Well for Oil
Oil traders had to wait an extra day to get the latest weekly crude inventory numbers due to Monday’s holiday, and there’s lot of attention on tomorrow’s figures.
"The market continues to be caught between what appears to be a product glut with emphasis on gasoline and too much crude production," said Scott Shelton, energy futures broker and commentator with ICAP (LON:NXGN) in Durham, N.C.
So, the market will be focused not just on the headline of U.S. stockpiles, but on the figures on gasoline and distillates.
As of this afternoon, traders predicted U.S. stockpiles would fall by just 42,000 barrels in the latest week.
The EIA said last week that gasoline inventories rose by 7.5 million barrels, compared to expectations for a build of 2.77 million barrels, while distillate stockpiles increased by 2.97 million barrels, compared to forecasts for a gain of 1.57 million.