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Day Ahead: Top 3 Things to Watch

Published 02/26/2018, 04:38 PM
© Reuters.  What to watch out for in tomorrow's session
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Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow

1. Powell To Set The Pace?

Federal Reserve chair, Jerome Powell is slated to testify before the House and Senate Tuesday. While some market participants suggested that Powell would be reluctant to adopt a more hawkish stance than that of his predecessor Janet Yellen, others cited the central bank’s recent upbeat language on inflation as preparation for a more hawkish approach to monetary policy.

Nonetheless, investors are likely to closely parse Fed chair Powell’s comments on signs of rising inflation for clues on the pace of interest rate hikes.

A pair of reports on durable goods and consumer confidence are expected to garner investor attention for signs of ongoing strength in the US economy.

Economist forecast the Conference Board’s consumer confidence gauge to show a reading of 126.2 for February from 125.4 in the previous month.

The Commerce Department is expected to report core durable goods orders cooled to 0.4% in January, from 0.7% in the prior month.

The dollar struggled for direction against basket of major currencies trading around the flatline throughout the session.

2. Traders Hopeful For Another Week of Positive Crude Data

Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute due Tuesday.

The American Petroleum Institute reported crude stockpiles fell by 907,000 barrels for the week ended Feb. 16.

Crude oil futures settled higher on Monday as investors cheered upbeat commentary on continued output cuts from Saudi Arabia. Also supporting crude prices were expectations that a cold snap making its way across Europe could raise demand for product inventories like gasoline and heating oil, which in turn, could see crude supplies drop for the second-straight week.

3. Fitbit To Slump on Market Open?

Shares of Fitbit, plunged in after hours trade as the company reported an adjusted fourth quarter net loss of $0.02 per share on $571 million in revenue compared with a $0.56 per share loss on $573.8 million in revenue during the same quarter last year. The wearable technology company missed Wall Street estimates for earnings of $0.00 per share on $588 million in revenue.

The company said it expects non-GAAP first quarter 2018 net loss within a range of $0.21 to $0.18 per share on revenue of $240 million. The company warned that its new product introductions during the current quarter generated "limited revenue."

Fitbit Inc (NYSE:FIT) fell 11.55% to $4.90 in after hours trade after ending the day nearly 5% higher at $5.54.

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