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Day Ahead: Top 3 Things to Watch

Published 05/09/2019, 07:14 PM
© Reuters.

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

1. Uber to Debut at Low End of Its Range

Ride-share company Uber Technologies (NYSE:UBER) played it cautious when it priced its IPO at $45 per share tonight, the low end of its expected range, despite an oversubscribed offering.

The company still raised $8.1 billion and is valued at more than $80 billion, but underwriter nerves were evident after the Lyft (NASDAQ:LYFT) IPO debacle.

"Uber is basically Lyft 2.0. Good model, growing sales. But, yet again, here comes California math once more. It is still losing a ton of money," said Brian Hamilton, a tech entrepreneur and founder of data firm Sageworks.

"If you buy, you are buying a bull market, not a company," he added.

Who gave Uber’s bankers the idea of playing it safe is beyond me(at).

2. CPI Seen Rising

Inflation numbers continue to arrive tomorrow, this time on the retail front.

The Labor Department will issue the consumer price index (CPI) for April.

On average, economists expect that the CPI rose 0.4% last month, according to forecasts compiled by Investing.com.

The core CPI, which excludes food and energy prices, is expected to have risen 0.2%.

Wholesales inflation rose as expected last month, but the producer price index (PPI) rose less than anticipated.

3. Dwindling Earnings Season Still Has Some Names

Most of the big, attention-grabbing earnings are done, with the big retailers starting to come in starting in the next week. But Friday brings three reports of interest.

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Marriott International (NASDAQ:MAR) reports before the open. Analysts polled by Investing.com expect the hotel management giant to report $1.34 a share in earnings, unchanged from a year ago.

Revenue is expected to rise 2.4% to $5.13 billion. Marriott makes its money these days by operating properties that others build or own. The 12-month target price is $135.24, up just 0.6% from Thursday’s close. But the shares have climbed nearly 25% this year.

Tribune Media (NYSE:TRCO) is expected to earn 24 cents a share in the first quarter, down from 81 cents a year ago.

The revenue estimate is $447.4 million, up 0.6% from a year ago. It owns or operates 42 television stations, the WGN America cable network, considerable real estate portfolio and 31% of the company that runs the Food Network.

A plan to sell the company to Sinclair Broadcast Group was killed by the Federal Communications Commission last fall. A new effort to sell the company began last fall. The shares were down slightly on Thursday and are up 2% this year.

Viacom B (NASDAQ:VIAB), the owner of Paramount Pictures, is expected to earn 81 cents a share in the first quarter, down 12% from a year ago. Revenue is estimated at $3.06 billion, down 2.9%.

There’s been talk since the start of 2019 that Viacom, controlled by the Redstone family, may re-merge with broadcaster CBS.

The two split apart in 2006, although the Redstones control both. CBS’ long-term fate has been uncertain since last September, when longtime chairman-CEO Leslie Moonves was fired as sexual assault allegations from the past surfaced through investigative reporting by New Yorker magazine.

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