Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Housing Starts Forecast to Decline
While attention is rightly focused on the upcoming Federal Reserve decision, there will still be economic data rolling in, with housing numbers coming up tomorrow.
The Commerce Department will report on housing starts and building permits for November at 8:30 AM ET (13:30 GMT).
Economists expect that housing starts edged down to an annual rate of 1.225 million last month.
Building permits, an indication of future demand, are also forecast to show a small decline to a rate of 1.259 million.
2. FedEx and Micron Set to Report
The earnings calendar has a couple of big names reporting after the bell tomorrow.
In tech, chipmaker Micron (NASDAQ:MU) will release its latest numbers, with analysts predicting a profit of $2.94 per share on revenue of about $8 billion.
Micron has had a volatile year of trading, jumping up nearly 50% at the end of the spring semiconductor rally, but is now down about 20% year to date.
S.G. Cowen cut its price target on the stock today to $45 from $65, predicting a “material guide” below expectations for the quarter ending February, Briefing.com reported.
Meanwhile, FedEx (NYSE:FDX) has had to fight for any gains this year, with its stock tethered to any headline on the U.S.-China trade war. It’s off nearly 30% this year.
Along with any insight on that front, investors will be expecting the usual update on how business is faring during the holiday season and, possibly, any new information on how Amazon's (NASDAQ:AMZN) plans for its own delivery network is impacting the company.
On average, analysts expect that FedEx earned $3.96 per share on revenue of about $17.8 billion.
3. Fed Speculation Roils Commodities
The dive in equities is taking the spotlight, but global economic growth concerns and concerns about another Fed hikes are also hitting commodities.
WTI settled below $50 at 14-month low today with little sign that the production cut from OPEC and its allies will halt the slide.
"Oil is still trying to find a bottom as macroeconomic fears are outweighing common sense," said Phil Flynn, senior market analyst for energy at The Price Futures Group brokerage in Chicago.
Gold could be heading in the other direction, especially if there’s growing belief the heavy stock market losses will convince the FOMC to keep rates steady this week.
"(S)hould the Fed stall on a hike for any reason, then all bets are on for a full-fledged gold rally, including a test of $1,300 levels," said Philip Streible, senior market strategist for precious metals at RJO Futures in Chicago.