Markets

Existing home sales, Deere earnings and PMI readings: 3 things to watch for on Friday

People look at a home for sale during an open house on April 16, 2019 in San Francisco, California.
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Here's what you need to know about Friday before you hit the door.

Existing home sales

The National Association of Realtors will release its data on existing home sales for January in the first hour of trading.

Economists polled by Dow Jones expect a reading of a 5.34 million annual rate, which would be a 2% decline from the previous month.

The report comes after strong construction data earlier this week. Housing starts fell in January, according to the Commerce Department, but still beat expectations. The number of building permits also hit its highest level since 2007.

Deere earnings

Agricultural manufacturing company Deere will report its fiscal first quarter results before the bell, giving investors a look into spending by farmers amid international trade disputes.

CFO Ryan Campbell said at an analyst day last month that Deere expected agricultural retail sales to be down 5% in the United States and Canada this year and flat in other major markets, according to a transcript of the event. Stifel, which has a buy rating on the stock, projected the company to report $1.32 in earnings per share and $6.11 billion in revenue for the quarter, both of which would be declines from the same quarter a year ago.

The company has missed consensus earnings estimates in six of the past seven quarters, according to FactSet. Shares of Deere are down about 4% so far this year.

PMI readings

IHS Markit will release new purchasing manager's indexes for manufacturing and services on Friday shortly after the opening bell.

Economists polled by Dow Jones expect preliminary flash readings of 51.5 for the manufacturing sector and 53.2 for services. The PMI indexes are calculated so that readings above 50 represent expansion and readings below that mark signal contraction.

The final readings for January were 51.9 for manufacturing and 53.4 for services.

The Markit PMI has typically been one of the more bullish readings for U.S. manufacturing, but other recent measures suggest that the sector has bounced back after a slowdown during the trade war with China.

Major events (all times Eastern):

9:35 a.m. Dallas Fed's Kaplan

9:45 a.m. Manufacturing PMI

9:45 a.m. Services PMI

10 a.m. Existing home sales

10:15 a.m. Fed Governor Lael Brainard

1:30 p.m. Fed Vice Chair Richard Clarida

Major earnings:

Deere (before the bell)

Cinemark (before the bell)

Royal Bank of Canada (before the bell)

Allianz (before the bell)

Pinnacle West (before the bell)