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Day Ahead: Top 3 Things to Watch

Published 07/09/2019, 03:04 PM
Updated 07/09/2019, 04:52 PM
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Investing.com - Here are the top 3 things that could rock markets tomorrow.

Powell Takes the Stand, Fed Minutes

Federal Reserve Jerome Powell is set to get his two-day testimony on Capitol Hill underway on Wednesday at 10:00 am ET.

Powell’s semiannual monetary policy report to the House Financial Services Committee will be closely watched to see whether the Fed chairman will attempt to rein in expectations for aggressive Fed easing following the better-than-expected jobs report seen last week.

Investors expect the Fed to cut rates later this month, but hopes for an aggressive 50 basis points cut have faded.

Further insight into the central bank's thinking on monetary policy likely will also show up in the release of the Fed's minutes from its July meeting, where officials voted to keep rates steady, but opened the door to a possible rate cut amid worries over increasing uncertainties about the outlook on inflation and economic growth.

The minutes are due at 2:00 p.m. ET.

Bed, Bath & Beyond Earnings on Tap

Bed Bath & Beyond (NASDAQ:BBBY) is set to release earnings before the market closes on Wednesday, with many investors desperate for signs that the retailer has made a positive start for the year.

The company is expected to report earnings of 8 cents a share on revenue of $2.58 billion.

As well as its earnings, the retailer’s comps will likely be closely watched, with some suggesting that flat or modestly positive comps results for the quarter would prove a sign of progress. Shares were off 0.4% on Tuesday. They're up 1.1% this year, but that's after 50% increase in the first quarter and a 31.6% decline in the second quarter.

EIA Crude Inventory Data Eyed

The Energy Information Administration's (EIA) weekly petroleum report due Wednesday, with many eager to see whether the three-week run of inventory drawdowns can continue.

The EIA is expected to report a draw in crude stockpiles of 3.567 million barrels for the week ended July 5.

Crude oil futures climbed 17 cents to settle at $57.83 a barrel.

U.S. weekly production, which remain near record highs of 12.2 million barrels a day, will likely also garner attention.

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