Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Nvidia, Applied Materials Give Chips a Boost
The tech sector will likely get a boost tomorrow thanks to solid earnings report in the semiconductor sector after the bell today.
Nvidia (NASDAQ:NVDA) reported first-quarter earnings that topped analysts' expectations and delivered in-line guidance even as the chipmaker's gaming segment posted a sharp fall in sales.
Nvidia guided second-quarter revenue of $2.55 billion, plus or minus 2%, implying a year-over-year decline of 18.3%. Analysts surveyed by Refinitiv expected the company to forecast second-quarter revenue of $2.54 billion.
The stock gained 5.75% in after-hours trading.
And Applied Materials (NASDAQ:AMAT) reported fiscal second-quarter results that beat analysts' expectations on both the top and bottom lines and offered up in-line guidance, easing investor concerns the glut in memory supplies will weigh on the sector for prolonged period of time.
Its shares rose 6.7% postmarket.
2. Michigan Consumer Sentiment Expected to Rise
Consumer confidence numbers are the only market-moving economic indicator out tomorrow and that comes after the opening bell.
The University of Michigan releases its preliminary measure of May consumer confidence at 10:00 AM ET (14:00 GMT).
Consumer sentiment is expected to tick up slightly to 97.8, according to economists’ forecasts compiled by Investing.com.
But the expectations component is forecast to dip to 86.8.
3. Will Oil End the Week Up?
Oil has a good chance to close out the week with a gain, with bulls gaining the upper hand on tensions between Saudi Arabia and Iran.
But for traders, there is also the question also how well-balanced oil supplies are now.
There will be another data point to consider when the Baker Hughes U.S. oil rig count arrives at 1:00 PM ET (17:00 GMT).
Last week, the active rig count dropped to 805 from 807 the previous week and is down 9% this year.
U.S. crude stockpiles rose by 5.4 million barrels last week, the U.S. government announced on Wednesday, surprising a market expecting a decline instead of 800,000 barrels. In the previous week, crude inventories fell by almost 4 million barrels.
The Paris-based IEA said due to weakened demand, the global oil market was in a surplus of about 700,000 barrels in the first quarter despite WTI and Brent gaining about 30% in prices.
Combined with the worsening U.S.-China trade war and its impact on the global economy, the oil market is sending “mixed signals,” the IEA said.