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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. Netflix Slumps After Hours Netflix (NASDAQ:NFLX)

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

1. Netflix Slumps After Hours

Netflix (NASDAQ:NFLX) could weigh on tech stocks tomorrow after reporting mixed earnings after the bell today.

The consensus on Wall Street seemed to be that the numbers weren’t so hot as the stock fell more than 3% after hours.

But guidance was also mixed, so look for lots of commentary on whether to look on Netflix as half full or half empty.

A lot will depend on whether you like your metrics new-fangled or old-fashioned.

If you like the new stuff, first-quarter subscriber addition guidance topped forecasts. But earnings guidance looked well below expectations.

2. Schlumberger Earnings on Tap

Earnings are few on the ground tomorrow, typical of a Friday.

But there will be results that are a good proxy for the oil market coming from Schlumberger (NYSE:SLB) ahead of trading.

On average, analysts expect that the world’s largest oilfield services and equipment company earned 37 cents per share on revenue of about $8 billion.

Investors will also be looking for any insight into drilling activity in the wake of the sharp drop in oil prices at the end of last year.

Oil buffs will also be checking in on the Baker Hughes oil rig count, which stood at 873 last week. It arrives at 1 PM ET (18:00 GMT).

3. Michigan Sentiment Index Expected to Drop

Among economic indicators, the latest reading on consumer confidence will lead the way tomorrow morning.

The University of Michigan will release its preliminary January consumer sentiment index at 10:00 AM ET (15:00 GMT).

On average, economists expect that the index fell slightly to 97. Measures of expectations and current conditions are also forecast to have dropped slightly.