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© Reuters.Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Jobless Claims and Services Data Due
Thursday’s slate of economic data, including initial jobless claims and the ISM non-manufacturing index, will likely come under added scrutiny in the run-up to the crucial nonfarm payrolls due Friday. The economic calendar has a sprung a few negative surprises so far this week.
The Labor Department at 8:30 AM ET (12:30 GMT) releases its weekly count of the number of individuals who filed for unemployment insurance. Economists forecast that rose to 215,000 from 213,000 the previous week.
An ISM survey on services sector activity is due at 10:00 AM ET.
Economists expect that the for September will show a decline to a reading of 55 from August’s reading of 56.4. A reading above 50 signals non-manufacturing economy is expanding.
At the same time, the Commerce Department is expected to release an update on factory orders for August.
are expected to have fallen 0.2% in August.
2. Sterling in Spotlight
swung wildly Wednesday as traders digested U.K. Prime Minister Boris Johnson’s a new Brexit plan — a five-point offer that includes an alternative to the contentious Irish backstop.
And cable will likely be in action Thursday as officials in Brussels have already begun to poke holes in the new Brexit plan, with Commission President Jean-Claude Juncker citing “problematic points” in the proposal and insisting it needed work.
Johnson on Wednesday warned the EU to match his compromise on Brexit or risk Britain leaving the economic bloc without a deal.
3. PepsiCo, Costco) Earnings on Watch
PepsiCo (NASDAQ:) is slated to report earnings before the opening bell tomorrow, with many expecting its snack business to continue to underpin performance.
The company recently has spruced up the snack business by adding healthier options.
In its second-quarter report, the beverage and snack maker said it expects its fiscal 2019 organic revenue to grow by 4% and adjusted earnings per share, assuming constant foreign currency exchange rates, to decline by 1%.
Pepsi is expected to of $1.50 per share on revenue of about $16.9 billion.
Despite a 2.5% loss on Wednesday, shares are up 21% this year, reflecting an investor preference for stability.
Costco Wholesale (NASDAQ:), meanwhile, is expected to report earnings after the closing bell.
Ahead of its earnings, the retailer early last month reported that comparable-store sales rose 5% through most of the fiscal fourth quarter.
Costco will also update investors on subscriber trends with renewal rates – often used as a barometer of Costco’s future growth and a key driver of its earnings growth – likely to garner added investor attention after Bernstein recently warned that the company is facing peak membership numbers.
Costco is expected to of $2.54 a share on revenue of about $47.5 billion.
Costco (NASDAQ:) has been one of the year’s strongest big-cap stocks. It was up 0.4% Wednesday, in spite of the day’s market drubbing, and is up nearly 40% on the year.
