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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. BofA and Goldman on Tap

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

1. BofA and Goldman on Tap to Report

Financial sector earnings continue tomorrow before the bell, with Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) highlighting the reports.

For BofA, analysts are looking for a profit of 63 cents per share on revenue of about $22.4 billion.

On average, analysts expect that Goldman Sachs earned $4.42 per share on revenue of about $7.6 billion.

JPMorgan Chase (NYSE:JPM) managed to close higher today despite missing on the top and bottom lines as the financial sector closed higher.

2. Another Drawdown in Crude Stockpiles Seen

Crude oil bounced higher today and could be in for more gains if there’s another decline in U.S. oil inventory data.

The U.S. Energy Information Administration is expected to announce tomorrow a sixth-straight weekly decline in oil inventories for the week ended Jan. 11. Analysts forecast a drop of 1.3 million barrels.

In its Short-Term Energy Outlook released on Tuesday, the EIA forecast Brent will average $61 per barrel in 2019 and $65 in 2020, versus the 2018 average of $71.

The EIA expected WTI to average $8 per barrel below Brent in the first quarter. It saw the discount narrowing to $4 by the fourth quarter through 2020.

3. Beige Book Arrives

With trillions on its balance sheet, the Federal Reserve doesn’t have to worry about a lack of funds due to the partial federal government shutdown.

The Fed will release its Beige Book assessment of economic conditions at 2:00 PM ET (19:00 GMT).

The information will be useful for Fed Heads who parse every page. But it would take a major surprise to shake the current thinking that the Fed will remain mostly on hold this year after all the recent information from the Fed minutes and public remarks by Chairman Jay Powell.

The chances that the FOMC will keep rates steady through October increased today, according to Investing.com’s Fed Rate Monitor Tool. That’s likely due to an unexpected drop in the December core producer price index, which eased inflation expectations.