By Dhirendra Tripathi and Barani Krishnan
Stocks roared back as investors took advantage of Monday’s sharp selloff to buy the dip despite ongoing concerns about the rapid spread of the coronavirus.
Monday’s slump in the three major indexes could be traced to the resurgence in Covid-19 infections and worries it would stall the recovery. But others on Wall Street said the economy has already pivoted to an expansion phase.
Energy also recovered some of its losses from a day earlier, up more than 2% amid a tentative rebound in oil prices to just under $70 a barrel. Oil inventory data due out later Tuesday from the industry and Wednesday morning from the government could put a floor under prices if they show a continued draw down.
International Business Machines (NYSE:IBM) rose 2% after its second-quarter results topped analysts estimates, kicking off the flurry of big tech earnings reports expected out in the next few days.
Aside from earnings, it’s a fairly quiet summer week on the data front. Here are three things that could affect markets tomorrow:
1. Oil inventory
The American Petroleum Institute’s figures serve as a precursor to the official weekly inventory data due on Wednesday from the Energy Information Administration. According to a consensus of analysts tracked by Investing.com, U.S. crude inventory likely fell by 4.47 million barrels last week, versus the previous week’s drop of 7.90 million. The API data are released at 4:30 PM ET and the EIA data are released at 10:30 AM ET.
2. Soft drink earnings
Coca-Cola Co (NYSE:KO) reports Wednesday. Analysts tracked by Investing.com see it likely to report earnings per share of 56 cents on revenue of $9.3 billion for the second quarter.
3. Telecom earnings
Verizon Communications Inc (NYSE:VZ), also due out on Wednesday before the opening bell, is seen reporting a second-quarter revenue of $32.71 billion and earnings per share of $1.30. Last week, Ericsson (BS:ERICAs) said it signed its largest-ever deal with Verizon, an $8.3 billion agreement to provide 5G solutions.