Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Jobless Claims, Durable Goods, ISM on Tap
Investors will likely turn to a raft of top-tier economic data for further evidence of US economic growth after the Federal Reserve expressed confidence in the economic and inflation outlook.
The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance due 08:30 am ET for the week ended April 27, expected to show jobless claims rose to 225,000 from 209,000 the prior week.
First-quarter Nonfarm productivity data due 08:30am will also garner investor attention ahead of the nonfarm payrolls report due Friday.
The Commerce Department released its final report on March core durable goods orders due 10:00 am ET. Market participants expect that recent tax reform measures will ramp up business spending.
The Institute of Supply Management’s Non-Manufacturing Purchasing Managers' Index due 10:00 am ET is expected to show a reading of 58.1 for April slightly below the previous reading of 58.8.
A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of U.S. economic activity.
The dollar rose sharply against a basket of major currencies, as the Fed's monetary policy statement did little to dampen investor expectations for a June rate hike.
2. Natural Gas Inventories to Post First Build Since December?
Natural gas prices traded sharply lower on Wednesday ahead of data expected to show an increase in natural gas storage for the first time since December.
The Energy Information Agency’s weekly natural gas storage report is expected show gas storage rose by 52 billion cubic feet last week.
Traders are also expected to monitor developments in oil markets as crude oil prices shrugged off a massive rise in crude supplies to settle higher.
Crude futures settled at $67.93 a barrel, up 68 cents.
3. Tesla Shorts to Get Squeezed, Spotify to Slide?
Shares of Tesla Inc (NASDAQ:TSLA), inched higher in afterhours trade after the electric carmaker said Model 3 production was on track and reported first quarter earnings that topped expectations on both the top and bottom lines.
“We produced more than 2,000 Model 3 vehicles for three straight weeks, and we hit 2,270 in the last of those weeks,” Tesla said. The electric carmaker also confirmed that it expected to produce approximately 5,000 Model 3 vehicles per week in about two months.
Tesla posted earnings loss of $3.35 per share on $3.41 billion in revenue against analysts’ expectations of an earnings loss of $3.53 per share on $3.27 billion in revenue.
The firm reduced its “cash burn” as its 2018 capex projection fell below $3 billion from $3.4 billion.
Heading into the quarterly earnings report, Tesla was one of the most shorted stocks. Bets against Tesla (TSLA) increased with 38 million shares borrowed as of April 13 which was more than 30% of the float, Barron’s reported Tuesday.
Shares of Spotify Technology SA (NYSE:SPOT), meanwhile, fell more than 5% in after-hours trade after it released its maiden earnings report since its IPO last month, posting a smaller than expected loss but revenue fell short.
Spotify reported an earnings loss EUR 0.36 per share on EUR 1.14 billion in revenue against analysts’ expectations of an earnings loss of EUR 0.47 per share on EUR 1.29 billion in revenue.
Spotify said it ended the quarter with 170 million monthly active users (MAU) and 75 million premium subscribers, in-line with expectations, and up 30% and 45%, respectively, year over year.
Ad-supported monthly active users at 99 million for the quarter was slightly higher than the 98 million expected.
DowDuPont Inc (NYSE:DWDP), Kellogg Company (NYSE:K) and CBS Corporation (NYSE:CBS), meanwhile, are some of the more notable names expected to report earnings on Thursday.