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Day Ahead: Top 3 Things to Watch

Published 03/11/2019, 05:40 PM
Updated 03/11/2019, 05:54 PM
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. CPI, core CPI Expected to Rise 0.2%

Retail inflation data headlines the economic calendar tomorrow.

The Labor Department will release the consumer price index (CPI) for February at 8:30 AM ET (12:30 GMT).

Economists expect that the CPI rose 0.2% last month and that the core CPI, which excludes volatile food and energy prices also rose 0.2%.

That would bring the CPI to a 1.6% gain year over year, with the core CPI’s annual gain at 2.2%, hotter than the Fed’s 2% inflation target.

2. Dick’s Sporting Goods Headlines Earnings

Sporting goods retailer Dick’s Sporting Goods (NYSE:DKS) reports ahead of trading tomorrow and is expected to report earnings of $1.06 a share for the fourth quarter, according to analysts polled by Investing.com, down from $1.22 a year ago. Revenue is forecast at $2.48 billion, down from $2.66 billion in 2918.

Northern Oil & Gas (NYSE:NOG) is forecast to earn $0.14 a share in the fourth quarter on revenue of $156.9 million. A year ago, earnings were 1 cent a share on revenue of $72.48 million.

Tidewater (NYSE:TDW), the offshore boat company that ferries supplies to and from offshore platforms and drilling rigs, is expected to earn 22 cents a share in the fourth quarter on revenue of $134.5 million. That would be from a loss of 20 cents on revenue of $104.45 million a year ago.

Quorum Health (NYSE:QHC) is expected to report a loss of 28 cents a share in the fourth quarter on revenue of $474.27 million. A year ago, the operator of hospitals and outpatient clinics reported 4 cents a share in earning while revenue was $518.08 million.

And Pacific Ethanol (NASDAQ:PEIX) is expected to report a loss of 33 cents a share on revenue of $372.74 million. A year ago, the operator of eight ethanol production plants in the Midwest and West lost 32 cents a share on revenue of $395.27 million.

3. API Inventories Coming

The weekly petroleum update from the American Petroleum Institute due Tuesday, is expected to be closely watched after data last week showed a surge in crude inventories.

The API reported crude oil stockpiles rose by 7.290 million barrels for the week ended March 1.

Crude oil futures gained 1.3% to settle at $56.59 a barrel today as Saudi Arabia reportedly signaled its intention to deepen production cuts to avert a glut in global supplies.

Saudi Energy Minister Khalid al-Falih said the country was unlikely to halt output cuts before June. The upbeat remarks arrived after Bloomberg reported that an official said the Kingdom would extend output cuts into April.

Geopolitics has been "casting a shadow" over oil markets, a trend that may continue for several years, said IEA Executive Director Fatih Birol at the CERAWeek energy conference in Houston.

The U.S. shale revolution saw U.S. oil demand surge to 500,000 bpd, the highest of all countries, Birol added. This should be a "heads up" warning for other global oil exporters that “now is very much the time for them to diversify their economic base.”

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