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Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch
Stock Market
Wednesday, November 14, 2018 - 21:05

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

1. Online Sales Crucial for Walmart’s Earnings

Walmart (NYSE:WMT) caps off the retail earnings this week, reporting quarterly results before the bell tomorrow.

On average, analysts expect that the retail giant earned $1.01 per share on sales of $125.4 billion.

The stock has been choppy, but is solidly higher from lows of the year seen around May.

The number that's key to the ongoing momentum in its share price is growth in Walmart's online sales, Investing.com’s Haris Anwar wrote. This measure is crucial to prove the success of the company’s continuing battle with Amazon (NASDAQ:AMZN).

“In our view, there is a clear evidence that Walmart’s massive investments to improve its digital platform are paying off,” Anwar said. “In the second quarter, U.S. online sales continued their upward trajectory, surging 40% from the same period a year ago, putting Walmart's full-year guidance for its online sales growth within reach.”

Also reporting will be JC Penney (NYSE:JCP), where investors will be looking for any kind of good news.

Shares are now around a 52-week low and look more likely to break below $1 than head north of $2.

Analysts are forecasting a loss of 56 cents a share on sales of $2.76 billion.

2. Retail Sales Lead Busy Day for Indicators

The economic calendar is very busy tomorrow, with retail sales leading the parade.

The Commerce Department will report the latest retail figures at 8:30 AM ET (13:30 GMT).

Economists expect that core retail sales, which exclude autos, rose 0.5% in October.

At the same time, weekly initial jobless claims are released, which are expected to stay close to the week before at 216,000.

Two measures of regional manufacturing activity are also on tap then, with the Philly Fed Manufacturing Index and New York’s Empire State Manufacturing Index both expected to post a decline for November.

At 10 AM ET, data on business inventories for September are posted, with economists expecting a 0.3% gain.

3. Will Inventories Result in a Resumed Oil Selloff?

Oil broke its record losing streak, edging up 1% today. But the decline could resume tomorrow as the Energy Information Administration releases its weekly inventory report.

Strong U.S. production, combined with a rise in oil stockpiles, has been a major reason for oil’s unprecedented selloff.

With prices sharply in bear market territory, an outsize build could spook the market again.

Analysts are expecting a rise in inventories of 3.182 million barrels.

© Reuters.
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