Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. PPI, Core PPI Expected to Rise 0.2%
Following today’s cooler-than-expected retail inflation numbers, the market will get the latest wholesale inflation figures before the bell tomorrow.
The Labor Department will issue the February producer price index (PPI) at 8:30 AM ET (12:30 GMT).
On average economists expect that the PPI rose 0.2% last month with the core PPI, which excludes volatile food and energy prices, also rising 0.2%, according to forecasts compiled by Investing.com.
That would bring year-over-year PPI growth to 1.9% and core PPI growth up 2.6%.
The PPI is considered a leading indicator, measuring the input prices for goods sold at a retail level.
With tame inflation the Federal Reserve has lots of leeway to remain at its current stance of being patient and keeping interest rates steady.
Fed fund futures reflect no expectations for a rate hike this year and indicate a more-than-10% probability that the next move will, in fact, be a cut.
2. Core Durable Goods Orders Seen Climbing
Durable goods numbers for January also arrive at 8:30 AM ET.
The Commerce Department is expected to report the orders for goods lasting three or more year fell 0.5% in January. Core durable goods orders, which exclude autos, are forecast to have risen 0.1%.
Orders for non-defense goods excluding aircraft are also expected to post a 0.1% rise.
At 10:00 AM ET, there January data for construction spending will arrive. Economists, on average, are predicting a 0.4% rise.
3. Crude Inventories on Tap
A fresh batch of petroleum data from the Energy Information Administration (EIA) on Wednesday is expected to show a rise in U.S. crude stockpiles for the week ended March. 8.
Analysts forecast that crude inventories rose by about 2.7 million barrels last week.
Crude production will be also be in the spotlight after the EIA reported output remained at a record 12.1 million barrels a day in its previous report.
The data comes as the American Petroleum Institute reported Tuesday weekly crude stockpiles fell by 2.6 million barrels last week, compared with a build of 7.30 million barrels in the prior week.
Crude oil futures rose 0.1% to settle at $56.87 as a slump in Venezuela crude exports amid a power outage and Saudi Arabia's pledge to keep oil supply tight continued to support sentiment.