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investing.com — U.S. markets eased back on Wednesday ending a three-day winning streak as the rally in technology stocks lost steam and airline, cruise ship and retail stocks fell.
Investors are weighing the good signs of an economic rebound against data that show rising numbers of new Covid-19 infections across the country in what could be a much-feared setback to recovery.
The energy sector also took a hit on fresh concerns about demand for oil, which would signal that businesses are coming back on line. Instead, inventories rose, according to the latest data.
On Thursday, another round of jobs data is expected, along with a reading on manufacturing activity and earnings from grocery chain Kroger.
Here are three things that could affect markets tomorrow.
1. Jobless Claims Seen Falling Again But Unemployment Still High
Initial jobless claims are expected to be 1.3 million for the week ending June 13, down from 1.5 million reported the prior week, continuing a downward trend as the Covid-19 lockdowns continue to ease. The report is due out at 8:30 AM ET (12:30 GMT).
But millions of Americans are still out of work. Continuing jobless claims are expected to be 19.9 million, compared to 20.9 million the prior week.
2. Philly Fed Manufacturing Index a Glimpse of Economic Activity
The Philadelphia Fed Manufacturing Index for June is expected to come in at a negative 23, which would be an improvement from the negative 43 recorded for May. The index is only a reading of activity in the Philadelphia region, but it is likely significant for those who are looking for any signs of economic improvement after weeks of Covid-19 shutdowns. A level above zero indicates improving conditions, while a reading below zero indicates worsening conditions. The negative 56 recorded in April was the lowest level in 40 years.
3. Grocery Chain Earnings and Outlook Expected to Boost Stock
Kroger Company (NYSE:KR) reports first quarter earnings on Thursday, and analysts expect a big number because of Covid-19 food buying. Earnings per share are expected to be $1.07 on revenue of $40 billion, according to estimates by analysts tracked by Investing.com.
Analysts are also expecting Kroger to raise its guidance for the second quarter, which is already looking for EPS in the range of $2.30 to $2.40, according to Briefing.com.
