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The Day Ahead: 3 things that will drive the markets

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Investing.com - Here's a preview of the top 3 things to watch our for in tomorrow's session

U.S. Inflation on tap

U.S. inflation data on Friday will be the most closely watched economic data release during the session, as it's the first set of inflation figures since the Federal Reserve hiked rates in June and shrugged off the slowdown in inflation as transitory.

Expectations for Core PCE, a key measure of inflation the Fed considers in its interest rate decisions, is expected show a dip to 1.4% year-over-year in May.

Some analysts believe that Friday's inflation data will be key in determining if the Fed can deliver on its promise of three hikes this year.

"…the FOMC does not take the recent inflation developments lightly, and though it believes the near-term weakness will prove to be transitory, inflation data is front and center and will be key in determining if the Fed can deliver on its promise of three hikes this year." Morgan Stanley said in research note to clients.

Nike set to open higher

Nike (NYSE:NKE) reported fourth-quarter fiscal earnings and sales on Thursday that topped Wall Street expectations, boosting shares of the company more than 4% higher in after hours trade.

Nike reported earnings of 60 cents per share on revenue of $8.68 billion, well above Wall Street estimates of earnings of 50 cents per share on revenue of 8.63 billion.

The sportswear giant based its solid quarterly performance on steady revenue growth in its international geographies and direct-to-consumer businesses.

Investors will look ahead to the open of US trade on Friday, to gauge whether the solid quarterly earnings report spurs a rally in the sportswear giant's shares.

Baker Hughes rig count

The weekly instalment of drilling activity from Baker Hughes on Friday, is expected to show that demand from U.S. oil producers remains healthy, with the number of drilling rigs set to rise for the 24th consecutive week.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

The steady increase in the number of U.S. oil rigs has added to fears that U.S. output will continue to swell, weighing on Opec and its allies' efforts to drain the glut in supply.

At Thursday's settlement price, Crude futures remained on track to post a fourth-straight month of losses.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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