Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Durable Goods Orders, ISM Non-Manufacturing, ADP Data on Tap
A raft of economic reports on services, private sector jobs and durable goods orders could dictate market direction Wednesday amid a recent lack of top-tier economic data.
ADP nonfarm employment data, which often serves as a precursor to the monthly nonfarm payrolls data slated for Friday, is expected to show the private sector created 205,000 jobs in March, slightly below the 235,000 jobs created in the prior month.
The Institute of Supply Management’s Non-Manufacturing Purchasing Managers' Index is expected to show a reading of 59.2 for March slightly below the previous reading of 59.5.
A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity.
A pair of reports on the durable goods and factory orders, meanwhile, will be closely monitored to assess whether recent tax cuts have encouraged spending.
On the monetary policy front, speeches by both St. Louis Fed President James Bullard at 09:45 a.m. ET, and Cleveland Federal Reserve President Loretta at 11:00 a.m. ET could offer an insight into the Fed’s thinking on monetary policy measures.
The dollar tacked on gains against its rivals on Tuesday, as risk-on sentiment helped the greenback claw back some of its losses against safe-haven currencies such as the yen and Swiss franc.
2. Fresh Inventory Data to Threaten Crude’s Relief Rally?
A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles rose for the second straight week.
Analysts forecast crude inventories rose by about 264,000 barrels in the week ended March 29 amid an ongoing rise in U.S. output, which hit a record 10.43 million barrels a day last week, according to the Energy Information Administration.
Crude oil futures settled higher on Tuesday at $63.51 a barrel as risk-on sentiment supported demand for riskier assets.
3. CBS, Viacom, Spotify In Focus
Shares of CBS and Viacom will likely draw special attention Wednesday after CNBC reported, citing sources, that CBS submitted a bid for Viacom that was below market value.
The talks between the two companies reportedly hit a roadblock earlier in the session amid a squabble concerning who would lead the merged company.
The battle is between Joe Ianniello, the chief operating officer of CBS, and Bob Bakish, the CEO of Viacom, CNBC reported, citing the sources.
Shares of Viacom B Inc (NASDAQ:VIAB) closed at $29.42, down 3.7%, while CBS Corporation (NYSE:CBS) closed at $52.87, up 4.26%.
Elsewhere, investors are expected to continue to closely monitor Spotify after the music-streaming giant struggled to hold onto gains after making its public-listing debut Tuesday.
Spotify Technology SA (NYSE:SPOT) closed at $149.60, 13.3% higher from its reference price of $132, after hitting an intraday high of $169.
The streaming music service said in a prospectus filed with the Securities and Exchange Commission that it had 157 million active users and 71 million premium subscribers on Dec. 31, well above its closest competitor, Apple Music.
Spotify generated £4.09 billion in revenue in 2017, a 45% compound annual growth rate from the prior two years. Yet, it incurred losses of £1.24 billion last year, reporting a net-loss of £324 million and cash flow of £109 million.