The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a disappointing start to the week and finished Monday down 0.4% to 6,241.5 points.
Will the local market be able to bounce back on Tuesday? Here are five things to watch:
ASX futures pointing lower.
The latest SPI futures indicate that the local share market will open the day lower by 0.2% or 12 points. This follows a mixed night of trade on Wall Street which saw the Dow Jones push 0.2% higher, but the S&P 500 fall 0.1% and the Nasdaq open the week with a 0.3% decline. One result of interest in the U.S. earnings season overnight came from Netflix. Its shares are down 13% in after-market trade after its subscriber growth fell short of guidance. During the quarter Netflix added 670,000 new U.S. streaming additions and 4.5 million international streaming additions. Guidance was for 1.2 million and 5 million, respectively.
Oil prices plunge to three-month lows.
The shares of Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch on Tuesday after oil prices plunged to three-month lows. According to Bloomberg, WTI crude oil fell 4.2% to US$68.00 a barrel and Brent crude oil tumbled 4.5% to US$71.94 a barrel. Signs of increasing supply from Saudi Arabia and the United States have been the catalysts for the decline.
Galaxy Resources quarterly report.
The Galaxy Resources Limited (ASX: GXY) share price will be one to watch on Tuesday after the lithium miner released its quarterly update. Overall, the second quarter was a big improvement on the first quarter and saw concentrate produced rise 9% to 47,901 dry metric tonnes (dmt). Pleasingly the cash margin per dmt sold after royalties and marketing fees rose 22% quarter-on-quarter to US$534.
Empired preliminary results.
Empired Ltd (ASX: EPD) shares could be set for a positive day of trade after the IT Services provider released its FY 2018 unaudited results. Empired reported revenue of $174 million and underlying EBITDA of $17 million. This was a year-on-year increase of 4% and 10%. Looking ahead, a strong level of contracted work is expected to lead to double-digit revenue, EBITDA, NPAT and EPS growth in FY 2019.
RBA board minutes.
Later today the minutes from this month’s Reserve Bank of Australia meeting will be released. While there are not expected to be any bombshells within the release, traders will be looking out for any change in wording that could offer hints to the central bank’s plans on interest rates.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.