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Day Ahead: Top 3 Things to Watch

Published 07/23/2018, 04:35 PM
© Reuters.  Google earnings handily beat estimates.
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Google Easily Beats the Street

Tech shares should get a boost in Tuesday trading following impressive results from Google parent Alphabet.

The stock jumped in postmarket trading Monday shortly after the company reported quarterly earnings and revenue that handily topped Wall Street’s forecasts.

Shares of Alphabet rose more than 4% at 4:25 PM ET (20:25 GMT).

The company said it earned $11.75 per share for the three months ended June 30, excluding the $5 billion fine from the EU. Revenue came in at $32.66 billion.

On average, analysts were looking for a profit of $9.66 per share on revenue of a little more than $25 billion.

2. Harley Could Hog the Morning Headlines

Earnings will continue to dominate most of the before-the-bell headlines Tuesday.

In the telecom sector, Dow component Verizon (NYSE:VZ) will issue numbers, as will rival AT&T (NYSE:T) after the bell, with investors keen to get updates on its acquisition of Time Warner, which still may face regulatory challenges.

The Department of Justice said earlier this month it would appeal the decision to approve the merger.

Dow component 3M (NYSE:MMM) is scheduled to report, as is drugmaker Eli Lilly.

But Harley-Davidson (NYSE:HOG) could steal the spotlight if it mentions more about the impact of President Donald Trump’s tariffs or about moving production abroad to avoid retaliatory tariffs on U.S. motorcycles.

3. Manufacturing, Home Sales Data Arrive

Investors will get the latest read on U.S. manufacturing and services activity when the purchasing managers index (PMI) is released at 9:45 AM ET (13:45 GMT).

On average, economists expect that the manufacturing index edged down to 55.1 for the preliminary July reading. The non-manufacturing, or services, PMI is forecast to remain the same as the month before at 56.5.

Both manufacturing and services have been strong this year, along with the broader economy.

Also on the calendar is the government’s house price index for May, with economists looking for a 0.4% rise. The housing sector has seen some weak numbers lately. On Monday, existing home sales for June fell unexpectedly.

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