Investing.com - Here's a preview of the top 3 things that could rock markets Friday, May 17.
1. US-China Trade Talks, Fed Speakers in Focus
With a light economic calendar for top-tier data on Friday, a trio of speeches from Fed policymakers could attract added investor attention.
Speeches by FOMC Member Lael Brainard at 3AM ET, FOMC Member Lael Brainard at 9.15AM ET and FOMC Robert Kaplan at 9:15AM are expected to be closely watched after Kaplan said Thursday the U.S economy was at full or already past full employment.
US-China trade talks are also expected to dominate attention as President Trump said on Thursday he doubts whether trade negotiations would succeed, claiming China had become “very spoiled” because like other countries they always got “100% of whatever they wanted from the United States.”
Trump’s comments drew a muted reaction in markets, where focus remained on soaring bonds yields after the 10-year treasury yield hit a fresh high on Thursday before pairing some of its gains.
2. Earnings Eyed
Campbell Soup and Deere are the notable names slated to report earnings on Friday.
Campbell Soup is expected to release fiscal third-quarter 2018 earnings on Friday before US markets open. Sentiment on the consumer packaged goods giant has turned sour over the past 12-months as its share price has slumped more than 30%.
Analysts expect Campbell Soup to report earnings of $0.61 per share on revenue of $2.14 billion.
Deere & Company is slated to report fiscal second-quarter earnings before US markets open. Investor attention is likely to focus on Agriculture & Turf sales growth – the firm’s largest division.
Deere’s first-quarter earnings fell short of Wall Street estimates amid supply chain and logistics issues. So, analysts will likely scrutinise how well the firm has managed to address these issues.
Analysts expect Deere & Company to report earnings of $3.29 per share on revenue of $9.83 billion.
Deere & Company (NYSE:DE) closed at $146.80, down 0.37%, while Campbell Soup Company (NYSE:CPB) closed at $39.22, down 0.66%
3. US rig count data to signal ongoing ramp in output?
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand.
Data last week showed the number of U.S. oil rigs rose for the sixth week in a row, pointing to a possible expansion in domestic output.
Escalating geopolitical tensions in the Middle East and the prospect of lower global crude supplies as countries prepare to shun Iran exports ahead of pending US sanctions have supported the extended rally in oil prices so far.
Crude futures settled flat on Thursday, but remained on track to post a weekly gain.