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Day Ahead: Top 3 Things to Watch

Published 2018-04-12, 04:01 p/m
Updated 2018-04-12, 04:14 p/m
© Reuters.  What to watch out for in tomorrow's session

Investing.com - Here's a preview of the top 3 things that could rock markets Friday, April 12.

1. Jobs, Sentiment, Fed Speak in Focus

Labor market data and a raft of University of Michigan data due Friday will cap of yet another week that has so far been dominated by geopolitical issues as markets head into the start of earnings season.

Michigan’s consumer expectations due 10:00 am, are expected to show a preliminary reading of 88.1 for April, while consumer sentiment is forecast to show a preliminary reading of 100.6 from 101.4 in the previous month.

The U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTs) report at 10:00 am ET, is expected to show job openings in February fell to about 6.11 million.

Speeches by FOMC members’ Eric Rosengren at 08:00 am ET, James Bullard at 09:00 am ET and Robert Kaplan at 13:00 ET will likely be monitored for clues on whether policymakers remain optimism on inflation and economic growth.

The Fed’s minutes on Wednesday showed policymakers remained confident that inflation would hit the Fed’s 2% target. That lifted expectations for a June rate hike, Investing.com’s Fed rate monitor tool showed.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.28% to 89.17 as geopolitical tensions calmed.

2. Banks Get Earnings Season Underway

Ahead of the start of earnings season in earnest Friday, when major banks are slated to release first-quarter earnings, investors piled into financials betting that tax reform, and further rate hikes would boost growth.

While performance from trading, is likely to be closely scrutinised after the return of volatility in markets.

JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) Citigroup Inc (NYSE:C), PNC Financial Services Group Inc (NYSE:PNC) closed the session more than 1% higher.

All four financial institutions are slated to release earnings before the market opens.They're expected to show respective earnings per share gains of $1.61, $2.28, $2.24 and $1.06, according to FactSet.

Blackrock had set the tone for a bullish start for financials to earnings season after the asset management firm posted better-than-expected first-quarter results Thursday.

3. Baker Hughes Rig Count Data, International Energy Agency Report on Tap

The weekly instalment of drilling activity from Baker Hughes on Friday at 1:00 pm ET, will provide investors with fresh insight into U.S. oil production and demand after data last week showed the number of U.S. oil rigs rebounded sharply after falling in the prior week.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

The International Energy Agency (IEA) releases its monthly report at 04:00 a.m. ET outlining key developments impacting oil market trends.

The IEA’s forecast on U.S. production will likely draw special attention after the energy watchdog in March warned that oil demand could outstrip supply despite the ramp up in shale output.

Crude futures bounced back from session lows Thursday to settle at three-year highs as traders continued to bet that geopolitical tensions in the Middle East would lead to supply disruptions, extending the rally in crude prices.

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