Investing.com - Three things that could rock the markets tomorrow:
1. U.S. GDP Growth on Show Amid Deluge of Data
An updated reading on second-quarter U.S. economic growth, initial jobless claims, trade data and numbers on pending home sales are all on the calendar tomorrow.
The Bureau of Economic Analysis will report its penultimate reading of second-quarter gross domestic product at 8:30 AM ET (12:30 GMT).
Economists, on average, expect that second-quarter growth slowed to a seasonally adjusted annual rate of 2.0% from an initial reading of 2.1%, according to forecasts compiled by Investing.com.
The weekly report on initial jobless claims is also due at 8:30 AM ET.
The forecast of economists polled by Investing.com is for an increase to 215,000, up from 209,000 the prior week.
At the same time, the Commerce Department is expected to report that the July U.S. goods trade deficit narrowed to $74.0 billion from $74.2 billion in June.
Housing also will garner attention, with the National Association of Realtors expected to report its monthly measure of pending home sales at 10:00 AM ET.
On average, economists expect that homes under contract to be sold slowed to 0.1% in July from 2.8% the previous month.
2. Eurozone Data Keeps Euro in Focus
EUR/USD may emerge as the currency pair to watch in Thursday’s session as top-tier Germany economic data hits the calendar at a time when many are fearful the EU’s most productive economy is on the brink.
The first reading on German consumer inflation in August is expected to show a 0.1% fall, compared with a 0.5% increase last month. During the 12 months through August, German CPI is expected to slow to a rate of 1.5% from 1.7% previously.
On the labor-market front, German unemployment is expected to have increased 4,000 in August from 1,000 the previous month, with the unemployment rate unchanged at 5.0%.
3. Best Buy , Abercrombie & Fitch Earnings Due
Best Buy (NYSE:BBY) is expected to report second-quarter earnings before the market open Thursday, with many fearing the U.S.-China trade war could hurt margins, keeping a lid on growth.
The electronics retailer is expected to report earnings of 99 cents a share on revenue of $9.55 billion, according to consensus estimates compiled by Investing.com.
Guidance will also be watched as the threat of tariffs looms, according to Wedbush.
“We expect management to again reiterate its fiscal 2020 guidance for revenue of $42.9 to 43.9 billion, for enterprise comps of 0.5% to 2.5%, and for earnings per share of $5.45 to $5.65, regardless of upside in the quarter given the looming threat of tariffs” Wedbush said.
Abercrombie & Fitch (NYSE:ANF) also reports second-quarter earnings before the opening bell.
The apparel retailer is expected to report earnings of 53 cents a share on revenue of $852.3 million.
The retailer’s ability to generate top-line growth will likely depend on the performance of its Hollister brand, which accounts for 58% of total revenue and has been losing the attention of consumers.
After its first-quarter results, the retailer said it was closing three big stores including the Hollister location in New York and Abercrombie in Milan and Fukuoka, Japan.