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Day Ahead: Top 3 Things to Watch

Published 03/19/2019, 07:39 PM
Updated 03/19/2019, 07:39 PM

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

1. Fed Ahead

It’s Fed day tomorrow and while the decision is almost certain, the press conference could bring some market-moving information.

The Federal Open Market Committee will announce its decision on interest rates at 2:00 PM ET (18:00 GMT).

There is more than 90% chance that the Fed will keep rates steady.

Fed Chairman Jerome Powell has said that the central bank can remain patient and recent economic data has supported his thesis.

The Atlanta Federal Reserve’s NowCast of GDP growth has it just at an annual rate of 0.4%.

“The statement after the meeting will have to balance weakness in the current quarter, disappointment over household spending and optimism about business investment,” GrantThorton Chief Economist Diane Swonk wrote.

2. Watch the Dot Plot

The interest rate decision will likely play second fiddle to the Fed's economic projection, with many estimating that the dot plot – showing projections of where each Fed governor expects the interest rates to be at certain points in the future – will be revised downward.

The Fed's December dot plot signaled two rate hikes were in the pipeline for 2019, but with signs of a global slowdown, many economists expect the number of rate hikes will fall to only one this year.

"The FOMC decision and subsequent comments clearly establishes the Powell Put which means that Federal Reserve will not do anything intentionally to endanger the stock market and the domestic economy," said Doug Roberts at Channel Capital Research. "This represents a continuation of the policy put in place by Federal Reserve Chairman Alan Greenspan and continued by his successors, Ben Bernanke and Janet Yellen."

3. Are You Eating Your Cereal?

On the earnings front, General Mills (NYSE:GIS) is seen reporting 69 cents a share in earnings for the fiscal-third quarter, down from 79 cents a year ago, according to analysts polled by Investing.com. Revenue for the maker of Cheerios and other packaged foods and Blue Buffalo pet foods, is forecast at $4.19 billion, up from $3.88 billion a year ago.

Retailer Williams-Sonoma (NYSE:WSM) is expected to report earnings of $1.97 for the fiscal-fourth quarter up from $1.68 a share a year ago Revenue is projected to rise 9.3% to $1.8 billion.

And Herman Miller (NASDAQ:MLHR), the office-furniture maker, is seen earnings 60 cents a share in the fiscal third-fiscal quarter, up 20% from a year ago’s 50 cents.

Latest comments

well if the fed says something that scares the markets buy puts or sell calls if they something that is super positive like cutting rates buy more after the initial sell off
strangles are the way to go. just need movement
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