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Day Ahead: Top 3 Things to Watch

Published 10/11/2018, 04:31 PM
Updated 10/11/2018, 05:03 PM
© Reuters.  Bank earnings headline the pre-market.
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Big Bank Earnings Highlight Pre-market

Earnings season picks up tomorrow as three big-name banks report. And with the volatile market desperate for some positive news, there’s a lot riding on the numbers.

Dow component JPMorgan Chase (NYSE:JPM) is on the docket, expected to earn $2.27 per share on revenue of more than $27 billion.

Citigroup (NYSE:C) will also report. On average, analysts predict a profit of $1.67 a share on revenue of around $18.5 billion.

And Wells Fargo (NYSE:WFC) is expected to come in with earnings of $1.19 per share, with revenue of about $22 billion.

Investors will be focusing on possible weak spots in the results, which include slowing loan growth and pressure on net interest margins.

Citi and J.P. Morgan stocks are slightly down in the last three months, while Wells Fargo is off more than 8%.

2. Import/Export Prices and Michigan Sentiment Arrive

Economic indicators keep coming tomorrow.

The latest numbers on import and export prices arrive at 8:30 AM ET (12:30 GMT), with economists predicting a 0.2% September increase for both.

At 10:00 AM ET, the University of Michigan releases its preliminary measure of October consumer sentiment.

On average, economists are predicting a slight rise to 100.4.

Also at the University of Michigan you’ll find Chicago Fed President Charles Evans, who is speaking at 9:30 AM ET. Evans will give a speech at the ENGAGE Undergraduate Investment Conference.

And Atlanta Fed President Raphael Bostic will be talking at 11:30 AM ET, participating in an armchair chat on recruitment and economics at the Network of Schools of Public Policy, Affairs and Administration Conference in Atlanta.

3. Gold Finally Shines

The deep selling on Wall Street has finally piqued some interest in gold as a hedge.

Gold jumped nearly 3% today, its biggest one-day gain in more than two years, as the safe haven looked more attractive. A weaker dollar on the tame CPI number also helped.

The yellow metal settled above $1,200 an ounce today, a key level of late.

A steady rise in gold in the next few trading session could mean even less buying interest for equities.

“The next potential resistance is $1,238,” Fawad Razaqzada, technical analyst at forex.com, said.

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