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Day Ahead: Top 3 Things to Watch

Published 2019-08-26, 03:36 p/m
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Investing.com -- Here's the top three things that could rock markets tomorrow.

1. Consumer Confidence Expected to Slow

Traders will look to consumer confidence numbers from the Conference Board on Tuesday for signs the U.S. economy remains on solid footing despite a slowdown in global growth.

Confidence is expected to ease to 129.5 in August from an 8-month high of 135.7 in July.

The consumer is underpinning U.S. economic growth, but if sentiment and labor markets deteriorate, a recession could emerge as early as the beginning of next year, JPMorgan said.

“We continue to see significant risk of a recession beginning within a year if sentiment and labor markets deteriorate further but still believe it is too soon to conclude that a recession is the most likely outcome,JPMorgan added.

2. API Crude Inventories

The American Petroleum Institute on Tuesday releases a fresh batch of inventory data amid new concerns that a potential U.S.-Iran meeting could lead to supply and demand imbalance.

Crude oil futures erased gains to settle 1% lower at $53.64 a barrel on fears a fresh wave of supply could hit the market after President Donald Trump said he is open to meeting Iran's President Hassan Rouhani “under the right circumstances.”

The American Petroleum Institute last week reported crude oil stockpiles fell by 3.5 million barrels.

3. Hewlett Packard, AutoDesk Earnings Due

Hewlett Packard Enterprise (NYSE:HPE) reports earnings after the closing bell on Tuesday.

The company is expected to report third-quarter earnings of 40 cents per share, on revenues of $7.29 billion, down 0.4% year over year.

Its efforts to ramp up its software and data businesses are expected to ease the softness in hardware sales, mainly PCs and printers, amid the ongoing slowdown in China.

Autodesk (NASDAQ:ADSK) also reports quarterly results after the closing bell. The software maker is expected to report earnings of 61 cents a share on revenue of about $787 million.

The software maker's earnings missed expectations on both the top and bottom lines, though some on Wall Street highlighted the company’s’ free cash flow generation and its efforts to accelerate construction digitization as positives.

In the previous earnings report, Autodesk (NASDAQ:ADSK) said it expected earnings per share of 59 cents to 63 cents in the second quarter, on $782 million to $792 million in revenue.

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