Day Ahead: Top 3 Things to Watch

16/04/2018 20:25:48 Stock Market

Here’s a preview of the top 3 things that could rock markets tomorrow

1. Housing Data, Industrial Production, Fed Jawboning in Focus

Building permits, housing starts and several Fed speakers are slated for Tuesday.

The Commerce Department at 08:30 ET is expected to report building permits rebounded 0.7% to a seasonally adjusted annual rate of 1.330 million units, while housing starts are forecast to rise 0.7% to 1.270 million units.

Economists forecast industrial production due Tuesday at 09:15 ET rose 0.3% in March, well below the 0.9% growth seen in the previous month.

Following the industrial data, investor attention will likely shift toward monetary policy ahead several speeches by Fed officials.

San Francisco Federal Reserve Bank President John William will deliver a speech at 09:15am, Federal Reserve Governor Randal Quarles at 10:00am, Philadelphia Fed President Patrick Harker at 11:00am ET, Chicago Fed President Charles Evans at 1:30 pm ET.

Atlanta Federal Reserve Bank President Raphael Bostic rounds off the day with a speech at 5:40 pm ET.

Market participants will closely parse the numerous speeches by Fed members to gauge their appetite to support further U.S. Fed rate hikes.

According to Investing.com’s Fed rate monitor tool, about 98% of traders expect the Federal Reserve to raise rates in June, up from 84% the previous the week.

The dollar fell against a basket of major currencies on Monday as upbeat retail sales data failed to inspire a recovery in the greenback.

2. API Data to Revive Crude Oil Rally?

Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute (API) due Tuesday after data last week showed a build in U.S. crude. stockpiles

The American Petroleum Institute reported last Tuesday crude oil stockpiles rose by 1.758 million barrels. That was below the Energy Information Administration’s weekly report showing U.S. crude stockpiles rose by 3.306 million.

Crude oil futures started the week on the back foot as traders reined in bets on supply disruptions in the Middle East amid easing fears over escalating conflict in the Syria. Crude oil prices settled 1.74% lower at $66.22.

3. Netflix to Drive Nasdaq Higher?

Shares of Netflix rose sharply in afterhours trade Monday, as the streaming giant added more subscribers than expected and guided both second-quarter earnings per share and subscriber growth above consensus.

Netflix reported first-quarter subscriber additions in the U.S. were 1.96 million, and internationally were 5.46 million, beating Wall Street estimates of 1.48 million and 5.02 million subscribers, respectively.

Netflix first-quarter earnings of 64 cents per share and sales of 3.70 billion, topped Wall Street estimates.

Netflix said it expects to add 6.2 million global subscribers in the second quarter - comprising of 1.20 million U.S. subscribers and international additions of 5.00 million. That beat Wall Street estimates of 5.24 million net adds for the second quarter.

The streaming giant guided second quarter earnings of 79 cents per share above consensus of 65 cents per share.

Netflix Inc (NASDAQ:NFLX) rose 5.76% to $325.77, after closing at $307.78 on Monday.