Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Wholesale Inflation, Manufacturing, Labor Data
Thursday ushers in a deluge of economic reports which could either add to the narrative of a strengthening US economy or dent investor expectations for solid first quarter economic growth.
Inflation at the wholesale level as measured by the producer price index is expected to have rebounded 0.4% in January following an unexpected 0.1% fall in December. The wholesale data will likely attract added investor attention as they are expected to parse the report for signs of further price pressures after Wednesday’s consumer inflation report topped economists’ forecasts.
An uptick in medical services prices was one of the main components that contributed to the rise in consumer prices. Amherst said traders should monitor the PPI report closely to establish whether the rise in medical services prices was transitory.
The Labor department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended Feb 10. Economist forecast initial jobless claims rose by 9,000 to 230,000.
Economists forecast the Philly Fed manufacturing index for February to show a reading of 21.1, slightly below the 22.2 reading in the previous month. While the New York Fed’s Empire State manufacturing index – a gauge of New York-area manufacturing – is expected to show a decline in February compared to the previous month.
The report comes as sentiment on US equities appears to have turned positive, following the recent selloff, as S&P 500 closed in positive territory for the year on Wednesday as financials and tech soared.
2. Bitcoin Eyes $10,000 Test as Inflows Into Crypto-Market Continue
Bitcoin rose 6.40% to $9,227 on Wednesday, continuing its recovery after falling to $6,000 last week. The popular digital currency has rallied 50% from last week’s slump as inflows into the industry remained steady.
The total cryptocurrency market cap rose more than 7% to $450 billion, at the time of writing, from roughly $420 billion Tuesday, suggesting demand for cryptocurrencies has renewed as fears of regulation begin to fade.
Bitcoin, however, is not the only crypto benefitting from new inflows into the market as Ripple’s XRP rose 12.87% to $1.12746.
3. Cisco To Rally on Open?
Shares of Cisco Systems Inc (NASDAQ:CSCO) rallied in aftermarket hours after the company posted fiscal second quarter earnings that beat on both the top and bottom lines.
Cisco reported second quarter revenue of $11.9 billion, up 3% year-over-year, beating analyst consensus of $11.8 billion. Non-GAAP earnings were $0.63 per share, up from $0.57 per share a year ago and ahead of expectations of $0.59 per share.
The company hiked its quarterly dividend 14% to $0.33 per share and approved a $25 billion increase to its stock repurchase program.
Cisco said it expects third-quarter revenue to grow 3% to 5% year-over-year, with non-GAAP earnings at $0.64 to $0.66 per share.
That was ahead of the Wall Street estimates of $12.13 billion in revenue and earnings of $0.63 per share.
Cisco rose 5.23% to $44.20 in after-market hours after closing at $42.09 on Wednesday.