Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Services Sector in Focus
A surprise drop in construction spending sapped the optimism from stocks in early trading today, and traders might be nervous that the latest measure of services sector activity may also throw a wrench in the works.
The Institute of Supply Management will release its February non-manufacturing purchasing managers’ index (PMI) at 10:00 AM ET (15:00 GMT).
The services PMI is expected to rise to 57.3 for last month, according to economist forecasts compiled by Investing.com.
A similar survey of the manufacturing sector released on Friday showed that U.S. factory activity fell to a two-year low as demand softened.
At 9:45 AM ET, Markit will release its composite PMI and services PMI for February.
2. Salesforce Struggles; Retailers Report
The tech sector could see some weakness tomorrow after software-as-a-service giant Salesforce.com (NYSE:CRM) fell after hours following weak earnings and revenue guidance.
Shares were down about 3% postmarket.
Retailers dominate the earnings calendar tomorrow.
Among earnings scheduled ahead of trading, Target (NYSE:TGT) is expected to report a profit of $1.52 a share, according to forecasts compiled by Investing.com, up from $1.37 a year ago. The consensus forecast on revenue is $22.92 billion, up 1.7% from a year ago.
Kohls (NYSE:KSS), the discount clothier, is expected to report earnings of $2.18 a share, up 16.5% from a year ago. The consensus revenue forecast is $6.66 billion, down from $6.74 billion a year ago.
Ross Stores (NASDAQ:ROST), is expected to earn $1.13 a share, and revenue is forecast at $4.05 billion. And Urban Outfitters (NASDAQ:URBN) is expected to earn 79 cents a share with revenue forecast at $1.14 billion.
Also on the calendar is Armstrong Flooring (NYSE:AFI). The forecast is for a loss of 20 cents a share. Revenue is projected at $265.9 million.
And advertising company Clear Channel Outdoor Holdings (NYSE:CCO) is expected to show a loss of 1 cent a share in the fourth quarter, according to analysts polled by Investing.com, with revenue projected at $738.6 million.
3. API Crude Data Coming
Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute due Tuesday after data last week showed a sizable draw in crude inventories.
The American Petroleum Institute reported crude oil stockpiles fell by 4.2 million barrels for the week ended Feb. 22.
Crude oil futures gained 1.4% to settle at $56.59 a barrel today amid continued production cuts from OPEC and its partners, OPEC+, while growing hopes the U.S. and China are close to reaching a deal as soon as this month also boosted sentiment.
But analysts have flagged concerns that a U.S.-China trade deal may not immediately reverse the fortunes of the slowing global economy, potentially keeping oil demand on the back foot.
"While (oil) prices have been trending higher since December 2018 lows, we believe upside is ultimately limited by the modest prospects for global economic growth," Rob Haworth at US Bank Wealth Management said.