Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch
Stock Market
Wednesday, July 10, 2019 - 20:08 - Here's the top 3 things that could rock markets tomorrow.

Labor, Inflation, Powell Testimony in Spotlight

Fed Chairman Jerome Powell will be in the spotlight again Thursday, after hinting on Wednesday the central bank likely will roll out rate cuts at its next meeting later this month.

Powell will appear before the Senate Banking Committee.

On the economic data front, inflation and jobless claims data will be in the spotlight. Both reports are due at 8.30 am ET.

The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended July 6. Economists forecast that initial jobless claims to decline to 220,000 from 221,000 previously.

Inflation will take on added attention as a slower pace of price increases may reignite investor expectations for more aggressive monetary policy from the Federal Reserve.

Economists expect the core consumer price index rose 0.2% last month after edging up 0.1% in May.

Delta Kicks Off Earnings for Airlines

Delta Air Lines (NYSE:DAL) is set to report earnings before the market open Thursday, with investors anticipating good second-quarter results from the airline amid soaring demand for air travel.

Delta is expected to benefit from the customer spillover from competitors and partners who have been affected by the grounding of Boeing’s 737 Max aircraft, said Cowen&Co.

Ahead of the results, the airline last week said it expected revenue per available seat mile would be at the upper end of its previous range, up around 3.5% for the quarter.

Delta is forecast to report earnings of $2.24 a share on revenue of $12.46 billion, according to estimates from Earnings would be up nearly 25% from a year ago with revenue up 5.6%. The shares are up 19.2% this year.

United Airlines parent United Continental Holdings (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines Group (NASDAQ:AAL) are due to report earnings in the coming weeks.

OPEC Monthly Report

Following Wednesday's oil-price surge on a bullish inventory report from the Energy Information Agency, traders will look to a monthly OPEC report on key developments shaping oil markets, including world oil demand and supply as well as the oil market balance.

Many fear the slowing pace of global growth may dent demand and force a surplus in world crude supplies, pressuring oil prices.

Crude oil futures settled up 4.5% at $60.43 a barrel.

© Reuters.

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