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Day Ahead - Top 3 Things to Watch – Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Cisco Earnings on Tap

Cisco (NASDAQ:CSCO) reports fourth-quarter earnings Wednesday after markets close amid concerns that weaker enterprise spending on networking equipment may dent growth.

Concerns about networking spending rose to the fore last week when networking giant NetApp (NASDAQ:NTAP) warned first-quarter revenue would fall short of estimates, blaming global uncertainty.

But analysts are backing Cisco’s diversified products and services offering to prevail.

“Cisco's diverse networking business likely achieves an in-line FQ4 despite broader signs of wavering enterprise demand,” Morgan Stanley said in a note to clients.

Cisco), up 21.5% for the year, is expected to report earnings of 81 cents a share on revenue of $13.39 billion.

2. U.K. Inflation and Sterling in Focus

The United Kingdom will release its figures on inflation for July on Wednesday at 4:30 AM ET (9:30 GMT).

Economists forecast overall inflation measured by the consumer price index in July fell 0.1%, compared with a 0.3% rise the prior month, while the core CPI, which excludes volatile food and energy price, is seen falling by 0.1% as well.

That would see year-over-year CPI growth fall to 1.9% from 2.0% and the core CPI growth remain unchanged at 1.8%.

GBP/USD has come under heavy pressure against the backdrop of political uncertainty and increasing fears of Britain leaving the European Union on Oct. 31 without a trade deal, a hard Brexit.

"Deal or no-deal, a general election looks increasingly likely," said James Smith, economist at ING.

3. Crude Inventories in Focus as Oil Rallies

The Energy Information Administration (EIA) releases its weekly petroleum report on Wednesday amid a more positive backdrop for oil prices as United States decided to delay tariffs on some China goods, giving investors a sliver of hope that the world’s two biggest economies can put their trade feud on ice.

Ahead of the EIA report, the American Petroleum Institute released data - which often serves as an early indication of weekly petroleum levels - showing crude stockpiles fell by 2.19 million barrels last week.

The EIA is expected to report a draw in crude stockpiles of 2.78 million barrels.

West Texas Intermediate crude, the U.S. benchmark, rallied 4% to settle at $57.10 a barrel on Tuesday as U.S. stocks rallied strongly.

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