Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
US inflation and jobs data on tap
Market participants look ahead to the release of a duo of economic reports, which may offer further guidance on the pace of inflation and the strength of the U.S. labor market.
Analysts expect a 0.1% decline in inflation for June at the wholesale level, measured by producer price index, compared to an unchanged reading in the previous month.
On the jobs data front, economists forecast a 3,000 decline to 245,000 in the number of individuals who filed for unemployment insurance for the week ended July 9.
Delta Air Lines reports earnings
Delta Air Lines Inc (NYSE:DAL) is expected to report second-quarter results on Thursday before U.S. markets open.
Investors are expecting a strong set of results in the wake of recent data suggesting Delta’s passenger revenue per available seat (PRASM), a key metric used to measure performance, rose about 2.5% year-over-year last quarter.
Delta is also expected to show an improvement in Unit-cost performance, as CFO Paul Jacobson has previously reiterated that non-fuel unit-cost inflation will subside to 2% in the second half of 2017.
Guess who’s back, again?
Federal Reserve chair Janet Yellen will deliver a second day of testimony on the U.S. central bank's semiannual report on monetary policy and the economy on Thursday.
Investors are expected to closely parse comments from the Yellen's second day of testimony, after she said Wednesday, interest rate increases will be “gradual” and confirmed the Fed’s plan to reduce its massive balance sheet.
Yellen noted, however, that the federal funds rate "would not have to rise all that much further" to reach a neutral level, pointing to a slower rate hike cycle than previously anticipated.
The somewhat dovish statement from Yellen, weighed on the dollar, boosting demand for gold.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A dip in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand.