Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Wholesale Inflation in Focus
A report on wholesale inflation will likely warrant close attention as it is due a day ahead of the consumer inflation report slated for Thursday.
Inflation growth at the wholesale level as measured by the producer price index due 08:30am ET is expected to have cooled to 0.2% in April from 0.3% in the prior month.
Market participants are likely to scrutinise the report amid expectations that higher input prices for manufacturers would be passed onto consumers, triggering a boost in consumer inflation.
The report is expected as the Federal Reserve last week expressed confidence inflation would meet its 2% target, keeping the central bank on track to maintain its gradual pace of rate hikes.
The dollar rose to a 2018 high on Tuesday against a major basket of currencies supported by an ongoing slump in EUR/USD amid renewed geopolitical uncertainty in the Eurozone.
2. Oil Reaction to Trump’s Iran Deal Announcement; Weekly US Crude Supplies Data
The reaction in oil prices following U.S. president Donald Trump’s decision to withdraw the United States from the Iran nuclear deal will remain in focus on Wednesday.
Inventory data from the Energy Information Administration (EIA) on Wednesday will also garner investor attention amid expectations for fourth-straight weekly build in U.S. crude stockpiles.
Economists forecast crude inventories fell by about 0.719 million barrels in the week ended May 4.
Crude oil prices settled lower on Tuesday but pared some of their losses heading into settlement as traders digested Trump’s announcement to withdraw the US from the Iran nuclear deal, and institute the highest level of economic sanctions on Iran.
Boeing in Focus, Earnings in Focus
Shares of Boeing Co (NYSE:BA) came under pressure Tuesday amid fears the aircraft maker’s multibillion dollar deals with Iran could come under pressure after the United States pulled out of the Iran nuclear deal.
Boeing and Iran’s Aseman airline penned a $3 billion agreement for 30 737 Max jets, Bloomberg reported. The aircraft maker also struck a $16.6 billion deal with national carrier Iran Air for 80 aircraft, taking the total value of its agreement with Iran to roughly $20 billion.
Boeing said it would "consult with the U.S. Government on next steps," following Trump’s announcement.
Meanwhile, on the corporate earnings front, a slew of quarterly earnings due Wednesday are expected from:
Groupon Inc (NASDAQ:GRPN), Roku Inc (NASDAQ:ROKU) , Weibo Corp (NASDAQ:WB), SINA Corp (NASDAQ:SINA), Office Depot Inc (NASDAQ:ODP), Anheuser Busch Inbev (BR:ABI) NV ADR (NYSE:BUD), Twenty-First Century Fox Inc (NASDAQ:FOX) and Booking Holdings Inc (NASDAQ:BKNG).