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Day Ahead: Top 3 Things to Watch for May 27

Published 05/26/2020, 04:44 PM
Updated 05/26/2020, 04:50 PM
© Reuters.

By Kim Khan 

Investing.com - Stocks posted strong gains to start the week, but they could’ve bene stronger if not for a late swoon on more worries about China-U.S. tensions.

Tomorrow investors will get a broad look at the economy from all the regional Fed banks.

There will be a measure of how U.S. oil inventories are shaping up as oil continues to climb and also earnings from the homebuilding sector.

Here are three things that could move the markets tomorrow.

1. Lockdown Beige Book Arrives

The Federal Reserve will release its Beige Book assessment of the economy at 2:00 PM ET (18:00 GMT).

The report should take on extra importance for its unprecedented glimpse into the pandemic economy.

Views will come from the 12 Fed districts, giving insight into how different parts of the country handled lockdown measures and early moves to reopen.

2. API Inventories on Tap

Oil prices rose the wave of reopening optimism as well today, with WTI futures getting closer to $35 per barrel.

With anticipation of growing demand, investors will get a measure of how U.S. stockpiles look when the American Petroleum Institute gives its gauge after the bell. It arrives a day later due to Monday’s holiday.

Last week API reported a drop of 4.8 million barrels in oil inventories.

Seevol.com reported a 4.26-million-barrel decline for the week to May 22 at the Cushing, Okla. hub that stores crude delivered against expiring spot contracts of WTI.

3. Will Housing Resilience Show in Earnings?

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Luxury homebuilder Toll Brothers (NYSE:TOL) will report earnings after the bell tomorrow and the numbers come on the heels of very surprising new home sales data.

Economists were predicting a drop of more than 20% in sales of new homes in April, but they posted a small gain.

“With incredibly attractive mortgage rates and pent-up demand from first-time buyers, there are reports of bidding wars at several times the previous pace,” Grant Thornton Associate Economist Yelena Maleyev wrote in a note. “Realtors report increased interest in virtual tours and self-guided tours of empty houses.”

Analysts predict a profit of 46 cents per share for the quarter, with sales of nearly $1.6 billion, according to forecasts compiled by Investing.com.

Latest comments

it's good
funny money
these reports are all frauds
I expect June to be big bull month. July might be then back bearish or even stronger bull month. It depends on a lot of factors which we can't really know beforehand (unless you see the future hehe).
Which stock I buy tomorrow?
Buy Wirecard AG (WDIG). It has huge potential and almost certain to go sky high.
ok fed bring the pain tomorrow 🐻
What are your predictions on stock market tomorrow
We would be at 36000 if there was good news everywhere, and if life was normal.
The Fed and their money machine In terms of increasing levels of inflation of the USD. And with the fact that their stimulus measures to control inflation (central bank) may include the discontinuation of QE, rate hike (contractionary method), selling of government bonds (withdraw), control of further money supply like M2 money supply, etc... in the future of course only when the economy is showing positive fundamental feedback and the analysis that the US economy is making continuous appreciation, otherwise true confidence rolls into the country.... I've been doing some ready from last year and this is my understanding of the "Central Banks" action as being a participant of the International FOREX market. Anticipate what the participants in the infrastructure would do and capitalize on the move. But this is all quight some time from now maybe in a few month (I say in about 5-7 months from now depending on how the market feels of future economic conditions.)
U.S. China Trade War This is bad yes when we have political uncertainty in the market, however it provides an opportunity. I think eventually participants of the Forex market will understand that this whole propaganda and mouth talk is just that, although it may become something very concerning if these parties feel to retaliate physically now which I highly! doubt will ever happen, non other these parities want to mess up the relationship that they have at the moment and when China finds means and ways to make their economy better the, US as usually is there to intervene and slow down or stop countries from doing such a thing. In mush interest I believe they will find a deal, but of course in the future only, and it maybe sooner if China finds a way to capitalize on the next deal to be made.
👊😎
5th important thing is US-China escalation.
peace and love to China. You don't have to hold the whole world hostage to be happy China baby!
As if the virus wasn't enough.USA should pay attention to the level of their own democracy.
4th thing and the most important: The Fed's Pump. Why do I always have to remind that?
Fed won't raise rates for few years. what happened in2018 when they did?economy was good then.
exactly
Who are you??? Lol
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