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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. Income and Spending Data on

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

1. Income and Spending Data on Tap

Following today’s delayed in-line report on GDP, the market will get a look at shutdown-delayed income and spending numbers.

At 8:30 AM ET (13:30 GMT), the December numbers on personal income and spending will arrive. In addition, the January income number will also be issued.

Personal spending is expected by economists to have fallen 0.2% in December.

Income is forecast to post a 0.3% rise in January and a 0.5% rise for December.

The Fed’s favorite inflation gauge, core personal consumption expenditures (PCE), which excludes food and energy, is seen moving up 0.2% for December.

2. ISM Manufacturing, Michigan Sentiment Due

Along with spending and income, there will be economic indicators on manufacturing activity and consumer confidence.

The Institute of Supply Management will report its February manufacturing purchasing managers’ index (PMI) at 10:00 AM ET (15:00 GMT).

The manufacturing PMI is expected to drop to 55.5 for the month, according to economists’ forecasts compiled by Investing.com. A reading above 50 indicates the manufacturing sector of the economy is still growing.

At the same time, the University of Michigan will issue its final measure of February consumer sentiment.

The index is seen coming in at 95.8, slightly higher than the preliminary measure. The end of the government shutdown at the end of January cheered consumers, the survey's chief economist said. In January, the index fell to 91.2, a two-year low.

3. Foot Locker Set to Report

Foot Locker (NYSE:FL) continues the retail earnings season tomorrow, reporting ahead of trading.

On average, analysts expect that the athletic wear retail chain to report fiscal fourth-quarter earnings of $1.40 per share on sales of about $2.2 billion.

On Tuesday, Pivotal Research Group downgraded the stock to hold from buy with a price target of $64.

Pivotal is expecting solid numbers when Foot Locker issues results, but says that fiscal first-quarter same-store sales numbers could be a problem due to delayed and reduced tax refunds crimping spending, Briefing.com reported.