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Day Ahead: Top 3 Things to Watch

Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.

1. U.S. Services, Trade and Labor Data Due

U.S. trade data due Tuesday will offer clues on President Donald Trump’s efforts to reduce the deficit between the U.S. and its trading partners at a time when trade tensions continue to cool amid reports that phase one of the U.S.-China trade deal is nearing the end game.

The Commerce Department will release the latest trade balance figures at 8:30 AM ET (13:30 GMT).

On average, economists expect that the U.S. trade deficit narrowed to $52.50 billion in September, according to forecasts compiled by Investing.com.

With manufacturing activity on the wane – largely due to the U.S-China trade war – the services sector, which makes about two-thirds of U.S. economic growth, has picked the slack.

The ISM survey on service sector activity is due at 10 AM ET (15:00 GMT). Economists predict ISM nonmanufacturing data for October to show an uptick to a reading of 53.5 from the prior reading of 52.6.

On the heels of the services data, the Labor Department will release its September Job Openings and Labor Turnover Survey (JOLTs).

On average, economists expect that job openings fell to 7.028 million in September from 7.051 million the prior month, according to forecasts compiled by Investing.com.

2. API Crude Inventories in Spotlight

Oil prices got the week off to a winning start, buoyed by hopes that the U.S. and China are closing in on a partial trade deal that some hope could steady global growth and support oil demand.

Late Tuesday, domestic crude supply will come into focus as American Petroleum Institute is set to release its weekly petroleum inventory numbers.

The API data often serves as a snapshot of the Energy Department’s petroleum data slated for a day later on Wednesday.

Crude oil futures rose 0.6% to settle at $56.54 a barrel.

3. Peloton Rolls Out Earnings

Peloton (NASDAQ:PTON), seller of connected exercise machines that are paired with on-demand fitness classes, is scheduled to report fiscal first-quarter earnings on Tuesday before the opening bell.

Ahead of its earnings, Peloton (NASDAQ:PTON) has struggled to find its footing. Shares have fallen about 15% since going public at $29 in September as traders have ditched loss-making entities.

The company said it sold 577,000 fitness machines and scooped up 511,000 subscribers to its core streaming offering in fiscal 2019, which costs $40 a month.

Its net loss widened to $245.7 million in the fiscal year ended June, from a net loss of $47.9 million a year earlier, largely driven by a surge in spending on sales and marketing.

But with its ability to generate repeat revenue from subscribers, Peloton has won the backing of many on Wall Street, who believe the company will be able to cash in on efforts to create a new market in connected fitneso.

New York-based Peloton is expected to report a loss of 36 cents a share on revenue of $199.06 million.

Among other notable earnings, Allergan (NYSE:AGN) and Mylan (NASDAQ:MYL) both release quarterly earnings before the U.S. stock market opens.

Allergan (NYSE:AGN) is expected to generate earnings of $4.23 a share on revenue of $3.89 billion, while Mylan (NASDAQ:MYL) is forecast to report earnings of $1.13 a share on revenue of $3.01 billion.

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