2 months ago
Stock Market

Day Ahead: Top 3 Things to Watch

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow. 1. Durable Goods Orders, Income and

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Durable Goods Orders, Income and Spending on Tap

Many in the market will already be packing up for the holidays tomorrow, but there’s a surprising amount of economic data coming out.

The Commerce Department will report on durable goods orders for November at 8:30 AM ET (13:30 GMT).

On average, economists expect that orders for long-lasting goods rose 1.6% last month and that core durable goods orders, which exclude autos, rose 0.3%.

The final measure of third-quarter GDP will also be released at that time, with forecasts for it to stay at its previous estimate of growth at an annual rate of 3.5%.

At 10:00 AM ET the November figures on personal spending and income are released, with both expected to have risen 0.3%. The core PCE price index, the Fed’s favorite inflation gauge, is forecast to tick up to an annual rate of 1.9%, just below the Fed’s target.

Also coming in at that time will be the final measure of the University of Michigan’s consumer sentiment index for December. Economists expect it rose slightly from its preliminary measure to 97.6.

2. Nike Results Top Forecasts

Bullish signs are few and far between, but maybe Nike’s strong earnings after the bell today can give the market some lift.

Nike reported a fiscal second-quarter profit of 52 cents per share on sales of $9.4 billion. That topped estimates for earnings of 46 cents a share and sales of $9.17 billion.

Gross margin came in at 43.8%, beating guidance of 43.5%.

Nike (NYSE:NKE) jumped more than 8% after hours.

3. Oil to Fall Below $45?

Oil bulls will get one last chance tomorrow to push prices higher before the holiday-shortened trading week, but if the trend continues oil prices will be below $45 going into Christmas.

U.S. crude fell another 5% today, even with chatter about Saudi Arabia cutting more than it agreed at the last OPEC meeting.

"You would think that demand along with a major production cut from OPEC and its co-conspirators the Russians, would have the market fearful of a shortfall of supply in the New Year," wrote Phil Flynn, senior market analyst for energy at The Price Futures Group brokerage in Chicago.

The latest U.S. rig count data from Baker Hughes comes tomorrow at 1:00 PM ET (18:00 GMT). The last weekly count came in at 873.