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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.

Apple, Apple, Apple

The big event on Tuesday comes after the market when Apple (NASDAQ:AAPL) reports earnings for its fiscal first quarter.The Dow component and one of the biggest influencers on the Nasdaq 100 is expected to report earnings of $4.17 a share, up from $3.89 a year ago. But revenue and what it means for the future will be more important.

Apple warned after the Jan. 2 market close revenue would come in at about $84 billion, down from its own projection of $89 billion to $93 billion but 8.8% from a year ago. Just about all of the short-fall will come from China and, more specifically, disappointing sales of iPhones.

The announcement stunned investors and sent the Dow Jones industrials down 660 points the next day, although Apple's shares are now about flat on the year.

China has emerged as a huge challenge because of the Sino-U.S. trade wars that have slowed growth on the mainland and the competition with lower-priced smart phones from Huawei, Samsung (KS:005930) and others.

The report and CEO Tim Cook's presentation will also generate a lot of questions about iPhones sales outside China as well. Some reports have said U.S. sales are "static."

Hog Wild

Harley-Davidson (NYSE:HOG) reports before the open. The venerable motorcycle may report 28 cents a share in earnings, down from 45 cents a year. Revenue is seen falling 14.6% to $1.06 billion. Harley has been struggling in recent years in attracting younger buyers for its high-end pricey bikes. The stock has recovered from a nasty slid between October and Dec. 24.

Earnings Parade

Pfizer (NYSE:PFE), before the open. The estimate for the pharma giant and Dow component is 64 cents a share, up slightly from a year ago. Sales of $13.96 billion would also be up slightly. Shares are off some 8% this month.

Defense contractor Lockheed Martin (NYSE:LMT) may report $4.40 a share for the fourth-quarter, up from $4.07 a year ago, a beneficiary of the Trump Administration's interesting in boosting defense spending. Shares are up around 15% this year. Shares are up more than 13% after a fourth-quarter swoon.

The estimate for telecom giant Verizon Communications (NYSE:VZ) is $1.09 a share for the fourth quarter, up from 88 cents a year ago, with revenue expected to rise 3.5% to $34.5 billion. Verizon has been doing some cutting of late, especially after writing down its investment in former Yahoo (NASDAQ:AABA) assets by some $4.6 billion. Verizon shares are down about 2% this month.

In economic news, look for the Conference Board's January report on Consumer Confidence, due at 10 AM ET (15:00 GMT). It may shed some light on how consumers look at the partial shutdown of the federal government and recent market turmoil.

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