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Day Ahead: Top 3 Things to Watch

Published 10/17/2019, 04:10 PM
Updated 10/17/2019, 04:56 PM
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Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.

1. Coca-Cola Earnings Due

Coca-Cola (NYSE:KO) is set to report earnings before U.S. markets open Friday, with many investors eager for details on the beverage giant’s plans to launch Coca-Cola Energy in the U.S. amid a push to break into the energy drinks market.

Within months of making its debut in Europe, Coke Energy captured 2% of energy drinks market in July. Coke is hoping for more of the same as it takes its energy drink nationwide in the U.S.

Coca-Cola is expected to report earnings of 56 cents per share on revenue of $9.45 billion. The earnings would be down 2 cents from a year ago with revenue up 14.4%.

Shares were up 0.56% on Thursday and are up 13.6% for the year.

2. Rig Counts on Tap

Baker Hughes releases its weekly measure of drilling activity on Friday, at a time when domestic production continues to flirt with record highs and a downtick in refinery activity keeps supply trending higher.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

Data last week showed the number of oil rigs operating in the U.S. rose by 1 to 856.

Crude futures on Thursday settled 1.2% higher at $53.93 a barrel.

3. Fed Jawboning Continues

The last wave of speeches from Fed speakers is due on Friday ahead of the usual Fed blackout: the period during which members are prohibited from speaking on monetary policy before the Federal Open Market Committee meeting on Oct. 30.

Federal Reserve Bank of Kansas City President Esther George and Dallas Fed President Robert Kaplan speak at 10 AM ET (14:00 GMT).

Minneapolis Fed President Neel Kashkari and Fed Vice President Richard Clarida are due at 10:30 AM ET.

During the Fed’s previous meeting in September, members were split on what the best course of monetary policy action is going forward.

Seven members voted for the Fed to cut rates to a range of 1.75% to 2.00% in the September meeting, while two members voted to keep rates steady. St. Louis Fed President James Bullard voted to cut rates by 50 basis points.

The odds of a rate cut at the end of the month stand at nearly 86%, according to Investing.com’s Fed Rate Monitor tool.

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