Top 5 Things to Know in The Market on Thursday

Investing.com - Here are the top five things you need to know in financial markets on Thursday, November 15:

1. Pound Plunges as Raab Resigns as UK Brexit Minister

The British pound tumbled after UK Brexit Minister Dominic Raab resigned, piling even more pressure on Prime Minister Theresa May.

The pound sank 1.8% against the dollar to 1.2751 (GBP/USD) by 5:30AM ET (1030GMT) and was off 1.5% against the euro at 0.8842 (EUR/GBP).

Raab, in a letter to the prime minister, said he cannot support terms of her draft Brexit plan.

"For my part, I cannot support the deal for two reasons," Raab said in his letter. "First, I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom."

"Secondly," he added, "I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit."

The resignation of such a senior minister thrusts the UK into a political crisis just as May was attempting to garner support for a Brexit deal which her opponents have warned could sink her premiership.

2. U.S. Futures Point to Higher Open

U.S. stock futures pointed to a higher open, as signs that the U.S. and China may be taking steps to de-escalate their bitter trade dispute helped lift sentiment.

The blue-chip Dow futures were up 24 points, or about 0.1%, the S&P 500 futures tacked on 2 points, or around 0.1%, while the tech-heavy Nasdaq 100 futures indicated a gain of 27 points, or roughly 0.4%.

Wall Street's major stock indexes fell on Wednesday, with the S&P 500 dropping for the fifth session in a row.

Elsewhere, European stocks were mixed, as investors digested a sharp fall in sterling and new developments in Brexit.

Earlier, stocks in Asia ended mostly higher, with markets in mainland China leading gains.

3. Walmart Reports Earnings

Walmart (NYSE:WMT) is one of the last notable names slated to report third-quarter results before U.S. markets open, as the earnings season continues to wind down.

The retail giant is expected to report earnings of $1.01 per share on revenue of $125.39 billion, according to estimates.

U.S. same-store sales are expected to rise 3.1%.

Investors will be closely watching the results to see whether its ongoing efforts to take on Amazon (NASDAQ:AMZN) in the online retail space are paying off.

Other notable companies reporting results ahead of the opening bell include JC Penney (NYSE:JCP). Analysts are forecasting a loss of 56 cents a share on sales of $2.76 billion.

After the close, Nvidia (NASDAQ:NVDA), Nordstrom (NYSE:JWN), Williams Sonoma (NYSE:WMB), and Applied Materials (NASDAQ:AMAT) are on deck.

4. U.S. Retail Sales

On the data front, the Commerce Department will publish a report on retail sales for October at 8:30AM ET (1330GMT), which should lend further support to the notion that the economy is on solid footing.

The consensus forecast is that the report will show retail sales rose 0.6% last month. Excluding the automobile sector, sales are expected to increase 0.5%.

A pair of surveys on manufacturing conditions in the Philadelphia and New York regions, as well as reports on weekly jobless claims, import prices and business inventories are also on the agenda.

Meanwhile, Federal Reserve Chair Jerome Powell is due to speak about Hurricane Harvey recovery efforts at an event hosted by the Federal Reserve Bank of Dallas, in Houston at 11:30AM ET (1630GMT).

On Wednesday, Powell expressed confidence in the U.S. economy and said that markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was more than half a percent higher at 97.19. The index hit a 16-month high of 97.53 on Monday.

In the bond market, U.S. Treasury prices edged higher, pushing yields lower across the curve, with the benchmark 10-year yield falling to 3.09%.

5. EIA's Weekly Oil Supply Report

In commodity markets, the U.S. Energy Information Administration will release its official weekly oil supplies report for the week ended November 9 at 11:00AM ET (1600GMT). The data comes out one day later than usual due to the Veterans Day holiday, observed on Monday.

Analysts expect the EIA to report a climb of around 3.2 million barrels in crude supplies. If confirmed, it would be the eighth straight weekly climb in domestic oil inventories.

After markets closed Wednesday, the American Petroleum Institute said that U.S. crude supplies rose by 8.8 million barrels last week.

U.S. West Texas Intermediate crude futures were down 41 cents, or 0.7%, at $55.86 a barrel.

International Brent crude oil futures dipped 8 cents to $66.04 per barrel.

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