Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Wall Street to Digest State of the Union
The focus of President Donald Trump’s State of the Union Address will not be the economy, but there is likely to be some market impact. The speech is set to start at 9 PM ET Tuesday (02:00 GMT Wednesday).
First and foremost, statements by Trump on the progress of trade talks with China will be parsed by investors.
The U.S.-Sino trade war has weighed on stocks, and time is running out on the latest deadline of March 1, when the Trump Administration said it will increase its tariffs on Chinese goods.
In addition, the standoff between Trump and Democrats over funding for a wall on the Mexican border has had not just trade implications but could lead to another government shutdown. The 35-day shutdown just ended dented U.S. economic growth last month.
"The speech is going to be closely monitored, for an update on trade talks with China and border security, or more specifically the border wall," Craig Erlam, senior market analyst at Oanda in London, wrote in a note.
"There have been plenty of reports that Trump is considering using emergency powers to deliver on his promise of border wall funding and this could be the platform for it."
Meanwhile, the oil markets will be looking for any updates on the U.S. call for regime change in Venezuela, which has led to an embargo of crude from Caracas.
2. Disney Edges up and Snap Soars
The Dow may get a slight lift in early trading after Disney (NYSE:DIS) topped expectations on the top and bottom lines.
The Dow component reported earnings per share of $1.84 on revenue of $15.3 billion. Analysts polled by Investing.com forecast EPS of $1.54 on revenue of $15.07 billion.
Shares rose 1.7% in after-hours trading.
Disney’s theme park and TV businesses helped it overcome tough year-ago comparisons when it released blockbuster movies "Star Wars: The Last Jedi and "Thor: Ragnorak."
And in the social media space, Snapchat maker Snap (NYSE:SNAP) soared more than 17% postmarket following its bullish earnings report.
Snap topped forecasts for earnings and revenues, while key metric daily active users was also slightly higher than expected.
3. Crude Stockpile Build Forecast
Oil prices settled lower today as weaker-than-expected U.S. economic data made traders nervous about demand.
Tomorrow brings the Energy Information Administration's closely-watched U.S. oil inventories numbers at 10:30 AM ET (15:30 GMT).
Analysts surveyed by Investing.com expect the EIA to report higher crude inventories of 2.18 million barrels versus the previous week's rise of 919,000.
Gasoline stockpiles are projected to have jumped by 1.6 million barrels against a previous slump of 2.235 million.
Stockpiles of distillates are expected to have fallen by about 1.81 million barrels versus the previous decline of 1.12 million.