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Investing.com — The real world appears to have caught up with the market as stocks tumbled.
The U.S. Labor Department reported that 1.4 million people filed for unemployment insurance for the week ended July 18, up 109,000 from the prior week and above economists’ estimates of 1.3 million. Jefferies (NYSE:JEF) blamed coronavirus surges in the Sun Belt.
The number of confirmed U.S. coronavirus cases neared 4 million, according to Johns Hopkins data, leading the world.
Investors were also disappointed as Republicans confirmed the payroll tax cut would not form part of the coronavirus fiscal package.
The weakness in the broader market was led by tech as some on Wall Street expressed concerns whether the rally in the sector has been too much, too fast. The surprising exception to that was Twitter Inc (NYSE:TWTR), where worse-than-expected results were overshadowed by a 34% jump in daily active users.
And if you’re thinking of betting on Vegas, think again. Las Vegas Sands (NYSE:LVS) CEO Rob Goldstein said it looks gloomy, and no one knows when the sun will shine again upon that city in the desert.
Here are three things that may move markets tomorrow:
1. New home sales
New home sales are expected to come in at 640,000, compared to 676,000 in May, and 580,000 in May. Home builders have been reporting strong results for the month, with PulteGroup (NYSE:PHM) among the latest to report earnings that beat forecasts.
The U.S. Manufacturing Purchasing Managers Index (PMI) also publishes tomorrow, estimated at 49.6 versus the previous 49.8. A reading above 50 indicates expansion in the sector; below 50 indicates contraction.
2. Show me the money
Verizon (NYSE:VZ) reports earnings on Friday. The telco is expected to report earnings per share of $1.12 on $29.8 billion in revenue, analysts tracked by Investing.com say. Shares of Verizon are little changed.
Honeywell (NYSE:HON) also publishes results, and earnings per share of $1.21 are expected on an estimated $7.29 billion of revenue, according to analysts surveyed by Investing.com. The company has 10 buy ratings, 4 holds and no sells.
Finally, American Express (NYSE:AXP) will let us know how people have been spending in quarantine (we would think a significant amount, but analysts tend to disagree). Analysts tracked by Investing.com see a loss per share of 5 cents on $8.24 billion in revenue. That compares to earnings per share of $2.07 on $10.8 billion in revenue for the same period a year earlier.
3. Because Covid-19 isn’t enough
Watch for tropical storms and hurricanes to hit the U.S. over the weekend, especially Texas and Hawaii. Some offshore oil and natural gas platforms of Port O’Connor, Texas, have been evacuated already, Bloomberg reported. Hurricane Douglas has its eye on Hawaii, though most storms tend to peter out before hitting land there, CNN said.
