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Day Ahead: Top 3 Things to Watch

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow. 1. Trump to Address Immigration Tonight With

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

1. Trump to Address Immigration Tonight

With the partial government shutdown putting many economic indicators on hold, geopolitics is holding a bigger sway on the markets.

President Donald Trump will address the cause of that shutdown -- a border wall showdown between him and the Democrats that control the House of Representatives -- tonight from the Oval Office at 9:00 PM ET (02:00 GMT Wednesday).

Trump has floated the idea of declaring a national emergency to get funding and use the military to build a wall along the entirety of the U.S. southern border.

Democratic leaders have said they won’t budge on a project that is ineffective and expensive.

A move by Trump to declare a national emergency could bring about legal battles over presidential powers and eminent domain, but could also take away a key stumbling block to passing a budget and reopening the federal government.

2. China-U.S. Trade Talks Enter Third Day

Along with the government shutdown, investors will be watching trade talks for any signs of progress.

The talks were extended for another day and resume tomorrow.

Steven Winberg, Assistant Secretary for Fossil Energy at the U.S. Department of Energy told reporters at the U.S. delegation's hotel that talks, which began on Monday, had gone well.

"I confirm we're continuing tomorrow, yes," Winberg told reporters, declining to answer further questions.

The editor-in-chief of China's state-run Global Times tabloid Hu Xijin said on Twitter earlier that negotiations would continue on Wednesday.

"China-U.S. trade talks haven't concluded after two days of tough work. I heard they will continue tomorrow. This sends a signal: The two sides are in serious talks and working hard to solve the disagreements between them," Hu said.

3. Homebuilders to Report Earnings

Earnings season is drawing nearer and homebuilders weigh in with numbers tomorrow.

Before the bell, Lennar (NYSE:LEN) will report, with analysts predicting a profit of $1.96 per share on sales of more than $6.5 billion.

KB Home (NYSE:KBH) issues results after the bell. On average, analysts predict a profit of 94 cents per share on sales of more than $1.3 billion.

Both stocks are down over the last three months.

Also after the bell, home products retailer Bed Bath & Beyond (NASDAQ:BBBY) will report, with the Street looking for a profit of 17 cents per share on sales of about $3 billion.

Shares of the company have been cut almost in half over the last 12 months.

-- Reuters contributed to this report.