Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Apple Beats the Street
Apple (NASDAQ:AAPL) should deliver the tech-sector a much-needed lift Wednesday after reporting quarterly earnings after the bell that beat on the top and bottom lines.
Apple reported a fiscal third-quarter profit of $2.34 per share, topping forecasts for a profit of $2.16 per share. Revenue of $53.3 billion was above expectations for $52.3 billion.
Shares of Apple rose about 2% right in postmarket trading right after the numbers were released.
The numbers will lend some support to the FAANG stocks and the tech sector as a whole after disappointing results from Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX) and Twitter (NYSE:TWTR).
2. FOMC Won’t Budge on Rates, but Watch Statement
The Federal Open Market Committee concludes its two-day policy meeting Wednesday and it’s almost a foregone conclusion that it will keep rates steady.
According to Investing.com's Fed Rate Monitor Tool, 96.9% of traders expected the Fed to stand pat.
What may be of interest is if the FOMC says in its statement that it sees further gradual rate increases appropriate “for now,” echoing Fed Chairman Jerome Powell’s testimony before Congress. That would indicate a possible softening of the stance on hikes.
On Tuesday, the core PCE price index, the Fed’s preferred inflation gauge, showed a tame rise in prices.
"The Fed can continue on its path of gradual rate hikes for now, but unless inflation pressures start to build, they may have to scale back their forecasts of how high interest rates actually need to go in this business cycle," said MUFG Union Bank.
3. Jobs and Manufacturing Data and Oil Inventories on Tap
Ahead of the Fed, the market will get a hint of July employment conditions a couple of days before the big payrolls report arrives.
ADP’s measure of private sector employment for July is released at 8:15 AM ET (12:15 GMT). Economists expect that 186,000 jobs were added last month, up from 177,000 in June.
At 10:00 AM ET (14:00 GMT) the ISM Manufacturing PMI is released. Manufacturing activity is expected to remain strong, with the PMI ticking down to 59.4 in July from 60.2 the month before.
The Energy Information Administration releases its latest figures on U.S. oil inventories at 10:30 AM ET (14:30 GMT). Oil stockpiles are near a three-year low and analysts expect a drop by about 2.8 million barrels for the week.