Day Ahead: Top 3 Things to Watch

Posted on the 18 September 2019 by Merks50 - Here’s a look at three things that could rock the markets tomorrow.

1. Fed Still High on the Agenda

It looks like the Fed-obsessing isn’t over with, as the markets try to figure out what’s next for the central bank and rates.

The stock market looked pretty unsure about what to make of a quarter-point cut with two dissenting hawks and one dissenting dove.

The FOMC’s dot-plot forecast indicated no expectation of further rate cuts, but the committee isn’t really speaking with one voice.

As far as the futures markets are concerned, the Fed will cut another 25 basis points in December, remaining steady in October, according to’s Fed Rate Monitor Tool. As far as President Donald Trump is concerned, the Fed has no "guts."

Central banks now look to be in a no-win position after “a protracted period of over-reliance on monetary policy,” Mohamed El-Erian, chief economic adviser at Allianz (DE:ALVG), tweeted.

2. Philly Fed, Existing Home Sales Arrive

Economic indicators will give insights into manufacturing, employment and housing (again) tomorrow.

The Philadelphia Fed will release its September manufacturing index at 8:30 AM ET (12:30 GMT).

The Philly Fed index is expected to have fallen to 11 this month from 16.8 in August, according to forecasts compiled by

At the same time, the Labor Department will issue the weekly jobless claims figures. Claims for first-time unemployment benefits are forecast to have risen to 213,000 in the latest week from 204,000.

At 10:00 AM ET, the National Association of Realtors will report the August existing home sales data.

Sales of existing homes are expected to have fallen 0.4% to an annual rate of 5.37 million.

Today, the market saw housing starts and building permits that rose to a 12-year high.

3. Darden Set to Report Results

Darden Restaurants Inc (NYSE:DRI) will report earnings before the bell tomorrow.

The operator of Olive Garden and LongHorn SteakHouse, among other chains, is expected to report a profit of .35 per share on sales of .14 billion, according to forecasts compiled by

The company will also update full-year guidance. Darden forecast a comparable restaurant sales rise of 1% to 2% for the year.

Shares have seen a strong rally in September, up 5.2%.

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