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Investing.com — Stocks roared back on Thursday, with the Dow Jones Industrial Average and S&P 500 preparing to end their best day in months with just a half-hour left in the session.
Jobless claims data earlier in the day, which came in slightly higher than expected for the previous week, eased fears that the Federal Reserve would act too soon to take its foot off the stimulus pedal it has been pressing since last year.
On Wednesday, the Fed said it could begin reducing its monthly bond purchases by as soon as November, and that interest rates could rise quicker than expected by next year.
This boosted bank stocks, which were among the day’s best performers because financial companies benefit when rates rise, allowing them bigger profits from lending.
Federal spending and the debt limit are also overhangs on the market. Democrat leaders in Congress announced a tentative deal on Thursday that would pay for President Joe Biden’s $3.5 trillion social safety net initiatives, though they didn’t offer details,
Earlier this week, House Democrats passed a measure that would fund the government past Sept. 30 and push the debt ceiling expiration back to the end of 2022, though Republicans have vowed to fight it, threatening a government shutdown.
Worries about the default of China property developer Evergrande also continued to ease. The looming prospect of a debt payment default sent stocks tumbling around the world earlier this week.
Data last week showed a surprise jump in retail sales, an indication that back-to-school shopping and other consumer spending has remained strong.
Here are three things that could affect markets tomorrow:
1. Sneaker sales
Nike Inc (NYSE:NKE) is expected to post earnings per share of $1.12 on revenue of $12.46 billion when it declares its first-quarter results later today, according to analysts tracked by Investing.com.
2. Cruising away
Carnival (NYSE:CUK) Corporation (NYSE:CCL) is seen recording a loss of $1.43 per share and revenue of $535.29 million in the third quarter. The results will be out Friday. Earlier today, the company said it wanted to get 50% of its fleet on the water and sailing with passengers by the end of next month.
3. New home sales
New home sales are expected to have grown in August to 714,000 after rising to 708,000 in the prior month. The numbers will be out Friday at 10:00 AM ET (1400 GMT).
