Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. The Strange Case of PG&E Stock
As usual, the earnings calendar thins out on Friday, but there are still companies of note reporting.
The most interesting will likely be Pacific Gas & Electric (NYSE:PCG), which is in the rare position of having filed bankruptcy only to see its stock remain above 12-month lows.
PG&E filed for Chapter 11 protection at the end of January in anticipation of liabilities for California wildfires.
The stock is down about 70% in the last three months, trading around $13.50, which is well above its 52-week low of $5.07 seen at the height of the liability concern.
For earnings, the company is expected to post a profit of 63 cents per share on revenue of about $4.3 billion, according to Investing.com estimates.
Also reporting tomorrow will be toymaker Hasbro (NASDAQ:HAS).
Analysts forecast quarterly earnings of $1.68 a share, with sales of about $1.5 billion.
Any discussions of the impact of the trade war between the U.S. and China will be carefully parsed, as toys are one of the products hit hard by tariffs. Both countries are still at an impasse as a March deadline looms.
2. Rig Count May Counter Politics
Oil prices were weaker today on geopolitics, as Russian Energy Minister Alexander Novak poured cold water over Saudi Arabia's reported hopes to lure Moscow and the group of 10 non-OPEC oil producers it leads into a formal pact.
But tomorrow traders get more data on which to hang their hats.
The Baker Hughes rig count arrives tomorrow at 1 PM ET (18:00 GMT).
The rig reading has been volatile lately, rising by 10 units and falling by 21 in the previous two weeks. And while the current number may mark a nine-month low, it is still higher than a year ago, when only 765 rigs were active.
Reuters suggested that last week’s rig count drop could be due to some drillers following through with plans from last year to spend less on new oil wells when crude prices were crashing to the low $40s.
3. Watch for Trade Jawboning
Investors should be on the lookout for any updates or comments from officials on the U.S.-China trade war tomorrow.
There was pessimism about progress today after CNBC reported that a meeting between President Donald Trump and Chinese President Xi Jinping was "highly unlikely" before the March 1 deadline set by the U.S. for reaching a trade deal.
But there were signals Thursday that the tariff increases could be delayed.
Often when the market struggles following discouraging trade news, bulls can count on a tweet from Trump or optimistic comments from administration officials to spark hopes for progress.