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Investing.com — Stocks were rising heading into the close on Monday after a choppy day of trading as investors scoured earnings reports from banks.
The financial sector has been under scrutiny since March’s turmoil involving the collapse of two big U.S. banks and Credit Suisse’s rescue by rival UBS (NYSE:UBS). Concerns about the banking system encouraged some people to move their deposits to the largest banks or to find other places to put their deposits that pay higher yields. Charles Schwab (NYSE:SCHW) beat earnings expectations on Monday but reported an 11% drop in deposits from the fourth quarter, underscoring this trend.
Analysts will be focusing on reports from regional banks such as Comerica (NYSE:CMA) later this week for similar trends.
Investors will also be listening to what an array of Fed officials will be saying in speeches this week. The Fed is expected to raise rates another quarter of a percentage point when it meets in May, but the outlook is uncertain after that. If economic conditions soften further, the Fed could be nearing a pause in its rate hiking.
Here are three things that could affect markets tomorrow:
1. Netflix reports
Streaming giant Netflix Inc (NASDAQ:NFLX) is expected to report earnings per share of $2.86 on revenue of $8.17 billion, though analysts will be waiting for its update on content spending and on its efforts to crack down on password sharing. The focus will also be on subscriber numbers.
2. Johnson & Johnson
The pharma giant Johnson & Johnson (NYSE:JNJ) is expected to report earnings per share of $2.50 on revenue of $23.6B, and analysts will be listening for updates on its proposed settlement of talc-related litigation.
3. Bank earnings
Bank of America Corp (NYSE:BAC) is expected to report earnings per share of 81 cents on revenue of $25.25B, and Goldman Sachs Group Inc (NYSE:GS) is expected to report earnings per share of $8.24 on revenue of $12.8B.
