Here's the top 3 things that could rock markets tomorrow.
1. Labor, Services Data on Watch
There's a larger-than-usual amount of economic indicators set for tomorrow, with the stock market closing early at 1:00 PM ET (17:00 GMT) and closed Thursday for the July 4 holiday.
Ahead of Friday’s monthly payroll report, the market gets a duo of reports on the labor market in the form of private sector payrolls and initial jobless claims.
An update on U.S. services activity will also be closely watched amid concerns about slowing growth.
{{|0ADP}} will report its nonfarm private-sector employ,ment number for June at 8:15 AM ET (12:15 GMT). In May, the report showed only 27,000 new private-sector jobs created, less than expected and the smallest since the economic recovery began in 2010.
On average, economists expect that the ADP (NASDAQ:ADP) report will show 140,000 private-sector jobs were added last month, well above the 27,000 added in the prior month, according to forecasts compiled by .
The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended June 29. Economists forecast that initial jobless claims declined to 220,000 from 227,000 previously.
Traders will also look to the U.S. services data for signs the economy remains on track despite external pressures. The services PMI is expected to remain unchanged at 57.7.
The services sector is critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).
Crude Inventories on Deck
Ahead of the Energy Information Administration (EIA) petroleum report due Wednesday, investors got an early insight into weekly U.S. supplies, showing a draw.
The American Petroleum Institute released data Tuesday that, while not perfectly correlated with the EIA's report, often serves as an early indication of weekly petroleum levels.
The API showed weekly crude stockpiles fell by 5 million barrels last week.
The EIA, meanwhile, is expected to report domestic supplies fell 2.964 million barrels for the week ended June 28.
Crude production will also garner attention after the EIA reported last week that output remained near a record at 12.1 million barrels a day.
Crude futures settled sharply lower on Tuesday, as fears that a weaker global economic backdrop would keep a lid on oil demand offset an agreement by OPEC and its allies to extend their oil-production pact by a further nine months.
U.K. Supermarkets in Focus
With little top-tier earnings on the calendar stateside, UK supermarkets will be in focus, with J Sainsbury PLC (LON:SBRY) set to report earnings before EU markets open.
The performance of Sainsbury’s core grocery business will likely garner attention as the supermarket continues to face stiff competition from the discounters Lidl and Aldi.
The report comes after the U.K. competition watchdog rejected Sainsbury’s proposed £7 billon merger with Wal-Mart (NYSE:WMT)-owned Asda earlier this year.
