Day Ahead: Top 3 Things to Watch for May 22

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© Reuters.

By Kim Khan 

.com – Stocks ended the day lower as the ghost of U.S.- animosity returned to spook investors.

Tomorrow there will be more on that front, including major earnings and possible actions from Washington against Beijing over .

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There will also be oil data at a time when prices are catching the eye of producers, even as demand remains depressed.

Here are the three things that could move markets tomorrow.

1. Alibaba , Deere Set to Report

Chinese e-commerce giant Alibaba (NYSE:BABA) will report earnings before the bell tomorrow.

Analysts are expecting a profit of 6.07 a share on sales of about 107.5 billion , according to forecasts compiled by Investing.com.

The results should give the market some idea of how the Chinese economy is emerging from the pandemic. There could also be some insight into the worsening U.S.-China relations and if Alibaba could allow further disclosure of its financials to the SEC following the Holding Foreign Companies Accountable Act.

Chinese search engine company Baidu (NASDAQ:BIDU) is considering delisting from the Nasdaq as tensions between the two nations rise, Reuters reported citing sources.

Also issuing numbers will be agriculture equipment maker Deere, which withdrew full-year 2020 guidance due to Covid-19 in March.

Deere (NYSE:DE) is forecast to post a profit of $1.91 per share and sales of about $8 billion.

2. U.S. Senate to Fire Back at China Over Hong Kong?

As the market looks like it may revert to its old habit of following back-and-forth between China and the U.S. for direction, investors will be watching for any more volleys about Hong Kong.

Senators are looking to introduce quickly a bipartisan bill that would sanction Chinese party officials and entities enforcing the new national-security laws in Hong Kong, The Wall Street Journal reported today.

Democratic Senator Chris Van Hollen and Republican Senator Pat Toomey will be urging Senate leaders to take up the matter quickly, the Journal said.

3. Count on Tap

Oil prices settled higher today, pushing WTI closer to $35 per barrel as hedge fund money chases the recent rally in prices.

Tomorrow brings the latest figures on oil rigs in operation, which will be of particular interest given that prices are reaching levels that could prompt companies to resume more production.

Baker Hughes will release its U.S. oil rig count tomorrow at 1:00 PM ET (17:00 GMT).

Last week the rig count dropped to 258 from 292 the week before.

Source: Investing.com

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