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Day Ahead: Top 3 Things to Watch

Published 07/25/2019, 05:45 PM
Updated 07/25/2019, 06:08 PM
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Investing.com – Here are the top 3 things that could rock markets tomorrow.

1. Amazon Slips, but Alphabet (NASDAQ:GOOGL), Intel Shine

Today’s big postmarket earnings should help the market tomorrow, although Amazon (NASDAQ:AMZN) seeing red in after-hours trading could be a hindrance.

Amazon’s earnings missed expectations as operating expenses jumped and the company also warned on third-quarter operating income.

But Google parent Alphabet's (NASDAQ:GOOG) shares jumped sharply following a quarterly report that beat on the top and bottom lines.

Intel (NASDAQ:INTC) should help the chip sector tomorrow as it climbed on the back of solid numbers, fuelled by demand for its data center chips and high-performance products.

And Starbucks (NASDAQ:SBUX) also impressed investors, with comparable-store sales beating forecasts.

2. U.S. Economy Expected to Show Signs of Slowing

The Bureau of Economic Analysis will report its preliminary reading on second-quarter GDP at 8:30 AM ET (13:30 GMT) tomorrow.

Economists, on average, expect the economy slowed to a pace of 1.8% in the second quarter from the 3.1% rate seen in the previous quarter.

But some analysts appear more optimistic on the pace of economic growth.

"We forecast GDP grew at an annualized rate of 2.5% in 2Q19, led by strong contributions from consumer spending and government expenditures (see 2Q19 GDP Forecast). In part, historical data that is about to be revised contribute to this forecast," Morgan Stanley said in a note.

While GDP will rightfully take the spotlight, consumer confidence will also get at least a cursory look.

The University of Michigan releases its preliminary measure of July consumer sentiment at 10:00 AM ET (14:00 GMT).

Consumer sentiment is expected to tick up slightly to 98.8, according to economists’ forecasts compiled by Investing.com.

3. Twitter Readies Earnings

The tech earnings parade continues Friday, with Twitter (NYSE:TWTR) set to release second-quarter earnings before markets open.

Twitter is expected to report a profit of 18 cents per share, according to Investing.com, on revenue of $829 million.

As well as its earnings and guidance, average monetizable daily active users (mDAU) will be one of the closely watched metrics after the company reported an 11% rise to 134 million in the first quarter.

The social media company's report comes against a mixed backdrop for social media companies as user growth has been steady, but the threat of regulatory scrutiny is on the rise.

Dow component McDonald’s (NYSE:MCD) and consumer products giant Colgate-Palmolive (NYSE:CL) also weigh in before the bell.

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