Yahoo Finance Day Ahead: Top 3 things to watch
Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Existing Home Sales, Trade War Turmoil in Focus
While potential developments on the trade war front will likely dominate trading direction, further evidence supporting the narrative of a strong U.S. economy could lift investor sentiment.
Existing Home Sales due 10:00AM ET is expected to show a rise of 1.5% for May to 5.55 million units from 5.46 million units the prior month.
The ongoing exchange of trade salvos between the U.S. and China prompted traders to flee risk assets in favour safe-haven but JPMorgan said it's unlikely President Trump's latest tariffs would see daylight as it would hurt U.S. businesses.
Trump's $400 billion tariff threat is unlikely to be imposed as it could hurt US companies as a significant portion of China's exports are Western products manufactured locally, JPMorgan said.
Traders were said to be in wait-and-see mode to assess whether China would retaliate with fresh tariffs, raising the prospect of an all-out trade war between the world's two largest economies.
The dollar hit nearly one-year high against its rivals on Tuesday.
2. U.S. Crude Oil Stockpiles in Focus,
A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday at 10.30 a.m. ET is expected to show crude supplies fell for a second straight week.
Yet, U.S. inventory data could play second fiddle to any OPEC and non-OPEC jawboning on potential crude output hikes ahead of the OPEC meeting later this week.
Analysts forecast crude inventories fell by about 1.898 million barrels in the week ended June 15.
Crude oil futures settled 1.2% lower at $65.07 on Tuesday on fears of an aggressive output hike amid comments from Russia's energy minister.
3. Investors Cool on Starbucks as Shares Tumble
Shares of Starbucks fell sharply in after-hours trade as the coffee chain slashed its third-quarter fiscal 2018 same-store sales growth from a previous estimate in April.
The coffee chain cut its forecast for third-quarter same-store sales to 1% from a previous estimate of between 3% and 5%, undershooting Wall Street estimates for same-store sales growth of 2.9%.
Starbucks also said it would scale back its U.S. retail footprint at a more rapid pace in 2019 as it seeks to ramp up the number of company-operated stores in under-penetrated markets.
"In FY19, this will result in a slightly lower growth rate in net new company-operated stores," Starbucks said.
Shares of Starbucks Corporation (NASDAQ:SBUX) fell 3% in after-hours trade.
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