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Investing.com — The S&P 500 and NASDAQ Composite reached new records on Thursday as Congress inched closer to agreement on a $900 billion economic rescue package.
Talks on Capitol Hill continued after new data showed that the number of Americans filing for unemployment assistance jumped to a three-month high last week, well above estimates.
Weakness in the labor market, combined with new business shutdowns across the nation to stop the spread of the coronavirus, is putting even more pressure on lawmakers to get a stimulus deal done before they leave for the holiday break.
Vaccines continue to be delivered despite a storm that blanketed the Northeast U.S. with heavy snow, with some parts of central New York buried under three feet of it. The Food and Drug Administration could approve Moderna’s vaccine by Friday.
Here are three things that could affect markets tomorrow:
1. Earnings from Darden and Nike
The service industry has been hardest-hit by the pandemic, as businesses were forced to close or restrict occupancy to slow the spread of the virus. But some are doing better than others. Darden Restaurants Inc (NYSE:DRI), owner of the Olive Garden chain and others, is expected to report earnings per share of 71 cents on sales of $1.7 billion.
At the same time, casual and athletic apparel brands have done well as shut-in consumers shopped online for shoes and exercise clothing. Nike Inc (NYSE:NKE) is expected to report EPS of 62 cents on revenue of $10.5 billion.
2. Next up for vaccines
Investors cheered last week when the FDA approved a vaccine by Pfizer Inc (NYSE:PFE) and BioNTech SE (NASDAQ:BNTX) for emergency use, and that vaccine has since rolled out and been put to use. On Friday, Moderna Inc (NASDAQ:MRNA) steps into the spotlight.
The Cambridge, Mass., drug maker traded up 5% on Thursday in anticipation of an FDA announcement. The shares are up 634% this year.
3. A Fed official scheduled to speak
The Federal Reserve’s Lael Brainard is scheduled to speak Friday at 11:00 AM ET (1500 GMT) on the topic of climate change and financial regulation. The appearance is hosted by the Center for American Progress.
Brainard has been an outspoken proponent of extra stimulus to support households and businesses, urging Congress to act quickly. This week, the Fed left interest rates alone and said it would support the economy until the recovery is complete.
