Trade update, Toll Brothers earnings, impeachment watch: 3 things to watch for in the markets on Monday

Diego Perez works on a Toll Brothers home on August 21, 2018 in Boca Raton, Florida.
Joe Raedle | Getty Images

Here are the most important things to know about Monday before you hit the door.

1. Trade update

Investors will be looking for clarity on the U.S.-China trade war on Monday after a volatile week of trade headlines. The world's two largest economies are in talks to finalize a so-called phase one trade deal as 15% tariffs on billions of dollars in Chinese imports are set to kick in Dec. 15.

Director of the White House National Economic Council Larry Kudlow said Friday the U.S. and China are "close" to a trade deal but that the administration was prepared to walk away if it did not get the terms it wanted.

President Donald Trump said on Thursday that trade talks with Beijing were going "very well." However, the Wall Street Journal reported Thursday the two countries still haven't reached a consensus on the amount of agriculture goods that China will purchase.

2. Toll Brothers earnings

We'll get a read on the housing market on Monday when home building company Toll Brothers reports fiscal fourth quarter earnings. U.S. homebuilding rebounded in October and permits for future home construction jumped to a more than 12-year high.

Susquehanna Financial Group is expecting Toll Brothers to report earnings of $1.35 per share, compared to the $2.08 per share reported in the fourth quarter of 2018. Susquehanna lowered its 2020 full year earnings estimate to $4.09 from $4.25 ahead of earnings.

"Our downward estimate revisions in this preview continue to reflect our concern over the outlook for gross margin for the company in the coming fiscal year," said Susquehanna analyst Jack Micenko in a note to clients on Friday.

Shares of Toll Brothers have risen more than 11% in the last three months.

3. Impeachment hearing

The House Judiciary Committee will hold a hearing on the impeachment report on Monday. House Democrats are in the middle of an inquiry into whether Trump abused his power by withholding military aid to Ukraine in exchange for the country announcing investigations for his own political benefit and at the expense of U.S. national security interests.

House Speaker Nancy Pelosi has asked the House committees investigating President Trump on Thursday to proceed with articles of impeachment.

Major events (all times ET):

9:00 a.m. House Judiciary Committee hearing

Major earnings:

Thor Industries (before the bell)

Toll Brothers (after the bell)

Vail Resorts (after the bell)

Chewy (after the bell)

MongoDB (after the bell)

Stitch Fix (after the bell)

— with reporting from CNBC's Michael Bloom and Yun Li.