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Investing.com — Stocks were little changed on Wednesday despite progress on stimulus that would give a lifeline to households and businesses as the pandemic rages into the winter.
The Federal Reserve kept rates unchanged and signaled that rates near zero would continue through 2023 to support the next phase of the economic recovery.
Fed Chairman Jerome Powell said the first-quarter data in 2021 will show a significant hit from a surge in the virus, but the economy should perform well in the second half of next year, especially now that vaccines are being rolled out.
Data from the Commerce Department showed that retail sales fell 1.1% in November, much worse than the 0.3% decline expected and a terrible sign for the beaten down retail industry going into the crucial holiday shopping season.
Stocks could rally on word a stimulus package is finally on its way, even if lawmakers have to delay their holiday recess.
Here are three things that could affect the markets tomorrow:
1. November housing starts expected to match October
It’s well-known by now that the pandemic encouraged a lot of families to move from urban areas to suburban and even rural areas. Stocks of home builders have benefited from the trend.
On Thursday, we get data on housing starts at 8:30 AM ET (1230 GMT). Analysts tracked by Investing.com see November starts coming in at 1.5 million, the same as October, after steady increases over the last six months.
2. Continuing and initial jobless claims seen falling from prior week
Workers in hard-hit industries like hospitality and restaurants may be heartened to hear that the proposed stimulus includes a few hundred dollars for individuals for pandemic relief. That’s a far cry from the $1,200 checks sent to individuals under a certain income level in the spring, but at least it’s a start.
Unemployment remains elevated. Initial jobless claims for last week, expected out at 8:30 AM ET (1230 GMT), are expected to be 800,000, which would be down from 853,000 the prior week. Continuing jobless claims are expected to be 5.6 million, down from 5.7 million the prior week.
3. Earnings from logistics, pharmacy and cereal companies
FedEx Corporation (NYSE:FDX), which is currently battling through the holiday shipping rush, is seen reporting earnings per share of $3.93 on revenue of $19.3 billion.
Pharmacy retailing giant Rite Aid Corporation (NYSE:RAD) is seen reporting EPS of less than 1 cent on sales of $5.8 billion. And the maker of Cheerios and Lucky Charms cereal, General Mills Inc (NYSE:GIS), is expected to report earnings of 97 cents on revenue of $4.6 billion.
