Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Will Pot Stocks Continue to Cause Investor Nausea?
Cannabis stocks have been dominating momentum trading talk and tomorrow’s action will likely garner lots of headlines after Tilray’s head-spinning move today.
Tilray soared in premarket trading on a CNBC appearance, nearly doubled on a short squeeze and then crashed in the last hour of the session, forcing several halts in trading due to volatility.
In the end, Tilray (NASDAQ:TLRY) finished up about 38% at around $214 from an intraday high of around $300 and a low of around $150.
The inflows into marijuana stocks have been astounding of late.
The strong bull run in the sector started when Corona beer owner Constellation Brands (NYSE:STZ) invested about $4 billion in Canopy Growth (NYSE:CGC), resulting in a fever to own other stocks in the space before the next big deal.
2. Existing Home Sales, Philly Fed Seen Rising
The housing data saga of the week continues with the release of existing home sales numbers at 10:00 AM ET (14:00 GMT).
So far, the numbers have been mixed.
The National Association of Home Builder’s September housing market index held steady, beating expectations for a small decline. And housing starts posted a much-stronger-than-expected rise in for August.
But building permits, an indicator of future activity, showed an August decline that was much larger than forecast.
On average, economists expect that existing home sales rose 0.3% in August to an annual adjusted rate of 5.35 million.
In addition, the Philly Fed manufacturing index arrives at 8:30 AM ET (12:30 GMT), with economists predicting a jump to 17 for September from 11.9 in August.
At the same time there will be the weekly initial jobless claims figures, with the market looking for a small rise to 210,000 from the week before.
3. Chip Investors Await Micron Numbers
Micron Technology (NASDAQ:MU) reports after trading tomorrow and will give investors more insight into whether the chip sector is heading from a cyclical downtrend.
The stock has already been hit by warnings and indications from other companies that demand in the memory market is waning.
Shares of Micron have fallen to about $45 from about $60 three months ago.
Sales will be the focus, with analysts, on average, predicting $8.25 billion for the quarter. Investors will be particularly keen to see the split between DRAM for PCs, where a big jump is expected, and NAND flash memory.
Wall Street forecasts a profit of $3.32 per share.
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