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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. Alphabet Dips Despite Big Beat Google

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

1. Alphabet Dips Despite Big Beat

Google parent Alphabet (NASDAQ:GOOGL) could weigh on the tech sector as a whole in early trading tomorrow.

The company reported a quarterly profit that trounced expectations, while revenue also came in higher than forecasts.

But the stock sold off following the release of the numbers. While the headline earnings looked very strong, Alphabet’s operating income was less then what Wall Street was looking for.

Alphabet was down about 2% in postmarket trading.

2. ISM Services PMI Seen Edging Lower

The highlight of tomorrow’s economic calendar is the Institute of Supply Management’s non-manufacturing purchasing manager’s index (PMI), which arrives at 10:00 AM ET (15:00 GMT).

Economists forecast that the measure of services activity ticked down slightly to 57 in January.

Investors will also be paying attention to the measure of non-manufacturing prices, given the sharp drop in manufacturing prices on Friday.

3. Viacom, Ralph Loren) Set to Report

Viacom (NASDAQ:VIAB) is among the earnings headliners ahead of trading tomorrow.

On average, analysts expect that the media company earned $1.03 per share in its latest quarter on revenue of about $3.1 billion.

In late January, Viacom announced it would acquire streaming service Pluto TV for $340 million in cash.

Also issuing numbers will be apparel company Ralph Lauren (NYSE:RL).

Analysts are forecasting a profit of $2.14 per share, with sales of about $1.66 billion.

Shares are down in the last three months, but have recovered some ground from its swoon in late December, along with the broader market.