Breaking News
0

Day Ahead: Top 3 Things to Watch

Stock MarketsJun 05, 2019 05:08PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Investing.com - The market is at the point where bad news is actually good news.

Stocks rallied today following a pretty dismal ADP report on private payrolls.

ADP (NASDAQ:ADP) said its measure of nonfarm payrolls rose by just 27,000 in May, well shy of the 180,000 economists were predicting. And that was music to investors’ ears as tepid jobs numbers may give the Federal Reserve just the excuse it needs to cut rates.

The market is now pricing in more than a 50% chance rates will be lower after the FOMC’s meeting in July, according to Investing.com’s Fed Rate Monitor Tool.

Tomorrow there will be the weekly jobless claims figures as the market moves toward Friday’s big May employment report.

An unexpected jump in jobless claims could further bolster the case for a rate cut and give bulls another reason to keep buying.

Here are the three things that could rock the market tomorrow.

1. ECB's Draghi to Turn up Dovish Rhetoric?

With the European Central Bank widely expected to keep interest rates on hold at Thursday's meeting, investor attention will likely hone in on ECB President Mario Draghi's presser.

The central bank chief is expected to adopt dovish language and likely push guidance on rates further out until next year, or, in a more dovish move, the bank's tightening bias could be axed.

Investors will also be keen for an update on the new targeted longer-term refinancing operations (TLTRO) program, while projections about growth and inflation will also garner attention.

2. Initial Jobless Claims Expected to Remain Unchanged, Trade Balance to Widen

The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended June 1. Economists forecast that initial jobless claims remained unchanged at 215,000.

With the U.S. at risk of entering a trade war on multiple fronts, trade data will likely be closely watched.

The Bureau of Economic Analysis will issue the April trade balance numbers at 8:30 AM ET (12:30 GMT).

On average, economists expect that the trade deficit for January widened to $50.50 billion.

3. Zoom Video Set to Deliver Maiden Quarterly Results

Video conferencing software company Zoom Video Communications (NASDAQ:ZM) is to release its first set of results as a public company on Thursday after the markets close.

The company is expected to post earnings of 1 cent a share on revenue of $111.7 million, according to Briefing.com.

The company went public in April, surging to a high of $91 before paring gains, with many analysts suggesting that optimism concerning the future prospects of the company had been baked into the rally.

JPMorgan said that while the stock appeared expensive, the technology "will help fundamentally change the way that business is conducted going forward."

Zoom, unlike some recent IPOs hitting the market including Pinterest (NYSE:PINS), Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), is a profitable company. The company reported $7.58 million in net income last year on revenue of $330.5 million.

Analysts have touted Zoom as a potential leader in video conferencing over rivals like LogMeIn.

Zoom closed at $78.04, down 0.89%, but remains well above its IPO price of $36.

Day Ahead: Top 3 Things to Watch
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Adamo Nals
Adamo Nals Jun 05, 2019 9:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Short term oversold short coverning is what your seeinh. Look at volume and again. If millenials cant handle 2.5% fed rate. Than america is in economic trouble.
Adamo Nals
Adamo Nals Jun 05, 2019 9:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nothingnew was said by the fed. They will keep an eye on macro. I can 100% guruntee everyone tarrifs will go on mexico and by next week 50% fib retrace to 2650. Theres just too much turmoil.
Adamo Nals
Adamo Nals Jun 05, 2019 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I can say this. Market is about a week away from a massive sell off imo
Michael bostic
Michael bostic Jun 05, 2019 7:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it looks like the markets have settled down as of now futures tomorrow look good. interesting to see what non far. jobs number will look like after hideous ADP report
Bull Shitter
Bull Shitter Jun 05, 2019 6:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Have we reach a point where bad news are good, and viceversa. You call that mani pulation.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email