Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Jerome Powell Speaks Again
This time, Federal Reserve Chairman Jerome Powell testifies about the economy and Fed interest-rate policy before the House Financial Services Committee, headed by Rep. Maxine Waters, D-Calif. At the hearing, which starts at 10 AM ET (15:00 GMT), Powell is likely to get many questions about consumer concerns. He will certainly be asked about how the Fed can help middle-class and lower-middle-class workers.
Powell likely won't say much more than he said at Tuesday's hearing before the Senate Banking Committee. The Fed isn't in any rush to raise interest rates because of worries about slowing economic growth in the U.S. and globally, he said.
Nor is the Fed in much of a rush to sell off huge amounts of the government securities it bought after the 2008-2009 financial crisis. Selling down that inventory would also put pressure on interest rates.
While unemployment is at record low levels and job growth is steady, some parts of the economy, especially housing, have slowed in the last half year or so.
2. Crude Stockpiles Seen up 2.8 Million
The Energy Information Agency will release its weekly reports on oil and natural gas inventories, production and imports at 10:30 AM ET (15:30 GMT).
Oil inventories are likely to grow by 2.84 million barrels, down slightly from a week ago's build of 3.67 million barrels, according to analysts’ forecasts compiled by Investing.com.
That could add a little pressure to crude prices. WTI futures settled at $55.50 a barrel, up 2 cents from Monday.
Oil prices are facing a continuing tug-of-war of late as OPEC and OPEC-plus members continue to pledge cuts in supply, but expectations for more U.S. output from shale rise.
3. Lowe's, Campbell Soup and Chesapeake Earnings on Tap
Home-improvement retailer Lowe’s (NYSE:LOW), which issues results before the open, is probably the most important report of the day. Analysts polled by Investing.com expect the company to report earnings of 79 cents a share in its fiscal fourth quarter, up from 74 cents a year ago. The revenue estimate is $15.75 billion, up from $15.5 billion a year ago.
The report will come after arch-rival Home Depot's results missed forecasts on the top and bottom and lines. Home Depot (NYSE:HD) shares fell 0.9% on the day.
Also reporting Wednesday is Campbell Soup (NYSE:CPB). The estimate from analysts polled by Investing.com is 71 cents a share, down from $1 a year ago. Revenue for the venerable maker of soups and other products is forecast at $2.69 billion, unchanged from the third quarter but up from $2.18 billion a year ago.
Chesapeake Energy (NYSE:CHK), the big Oklahoma City energy producer, is expected to report a profit of 18 cents a share for the fourth quarter, according to analysts polled by Investing.com. That would be down from 30 cents a year ago. Revenue is forecast at $2.28 billion.