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Day Ahead: 3 Things to Watch for June 25

Published 06/24/2020, 04:19 PM
Updated 06/24/2020, 04:27 PM
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks finally succumbed to investor worries about a second wave of coronavirus cases after managing to shrug off concerns earlier in the week.

The Dow Jones Industrial Average sank more than 700 points on Wednesday, and tech giants could not maintain their record-setting pace.

Businesses across the U.S. are trying to reopen even though new hotspots continue to pop up. That has led to worries that the progress will be interrupted by a fresh round of Covid-19 shutdowns. Already, Apple (NASDAQ:AAPL) has been forced to reclose some of its retail stores, announcing the shuttering of seven stores in the Houston area beginning Thursday.

Restaurant groups, retailers, and travel and leisure stocks could feel more pain if new shutdowns are ordered. And the oil sector, which has staged a comeback from a sharp drop in demand in March and April, is feeling pressure because of the slow pace of recovery.

Here are three things that could affect markets tomorrow.

1. Earnings Reports Show Uneven Effect of Covid-19 Shutdowns

Darden Restaurants Inc (NYSE:DRI), which owns the Olive Garden and Longhorn Steakhouse chains, is scheduled to report fiscal fourth quarter earnings Thursday before the opening bell. It's already a bleak outlook, with analysts tracked by Investing.com looking for a loss of $1.71 a share on revenue of $1.2 billion.

Meanwhile, sports apparel maker Nike Inc (NYSE:NKE) is set to report fourth quarter earnings after the closing bell, and analysts are expecting earnings of 12 cents a share on revenue of $7.4 billion.

2. Oil Sector in Spotlight After Mixed Data

Crude Oil WTI Futuresfell more nearly 6% on Wednesday after the government said crude stockpiles rose more than expected. At the same time, production also showed a surprising gain, indicating shale producers are back at work with West Texas Intermediate, the U.S. benchmark, trading around $38 a barrel.

Energy has been the worst performing sector of the S&P 500 this year despite staging a comeback since March and April, when demand for oil and oil products plummeted because of Covid-19 business shutdowns. Oil's sell-off on Wednesday also pressured shares of big oil companies such as Exxon Mobil Corp (NYSE:XOM) and Royal Dutch Shell (LON:RDSa) B PLC (NYSE:RDSb).

3. Investors Watch for the Trend in Jobless Claims

Also on Thursday, the government will report its weekly unemployment numbers. The progress has been good, but unemployment is still at post World War II highs. Initial jobless claims for the week ending June 21 are expected to be 1.3 million, while continuing jobless claims are expected to be 19.9 million. Both would be down from the number of claims filed the prior week.

 

 

Latest comments

Have you heard COVID Nurses. Ppl dying without loved one by their side and some ppl here think it's fake news? Get REAL! Not everyone is vulnerable but it is going to get much uglier now that we are reopening and first big US event post-first-wave was a rally for an election. That's what this is all about. Washing hands off at the Fed level and leaving testing for the drowned state budgets. This is one enemy virus that's not fake and I hope it doesn't hit home someday.
so what trading should I be buying
TESLA
boein will drop even more.
U can buy the stocks that makes up BA
Hopefully everyone is on to you
I am realitvely new to fay trading and the best i can tell is to go exaltly opposite of what you seem to suggest but i do appreciate your input. Has worked out well for me
Qexalty opposite of your predictions but dont get me wrong i apprecciate
The details of second wave is just fake media story to pull market from suddenly unexpected V shape recovery by businesses.
You guys are really funny. Face the reality. The bubble popped. Period.
Yes the fake media planted the virus numbers at exactly the time we decided to reopen.. do you wear a foil hat when you sleep to avoid the gamma rays the aliens probe you for at night? If not, you should because they will take all your secrets and skills as a trader.
don't wake them up yet, they want to sleep more
market down? it's because of "fake virus", China, Reuters, communists blah blah
Imagine if your m o m d i e d from this disease. I wonder if you would still think this way...
exactly my point, my post is sarcastic
what about the fed stress test results tomorrow
Second wave of the virus is a largely fictional idea, not supported by actual covid mortality numbers. It can hit market for a day or two. However, it cannot bring March lows back.
It's kinda funny when suddently there is a surge in covid deaths, while at the same time no one is dying from pneumonia (seasonal flu) anymore, and all other non covid related deaths suddently dropped dramatically aswell. Also dying with Covid seems to be the same as dying from Covid these days. I find the numbers funny. Let's not compare seasonal flu deaths from other years with deaths from Covid this year, because we may find that the numbers are virtually the same.
This sounds as unreliable as the fact the march lows shall be the lows of the current situation. The lows we have seen in march will pretty soon be rather high ...
the median age has gone down from 65 to 45 younger people can better fight the virus. However we do not yet know the results of secondary infection. That is to say did the younger carriers transmit it to their older relatives?
Just know that dont believe everything media says, they are liers, and market is still rolleycoaster ,just buy
Dow short tomorrow I'm assuming.......
Eh. if you are buying trying to make money the next 2-3 weeks you are probably in for pain. if you buy for 6 months from now you will be green
gonna get fk again, stuck with HALIBURTON fk shares, already RED SO RED
If the democrats didnt make it ao you get paid more for being unemployed the numbers would have recovered by now. Democrats stuck that in there on purpose to extend the virus. They could have easily let people go back to work, and keep receiving that small extra amount until its gone. Republicans are at fault to for letting it go through.
Hopelly the market will rally tomorrow 👍
Green day
Red day tommirow
Green day tomorrow
Reconnecting with reality to a point it takes the market right out of said reality - the market is an inch away from blurring the lines between fear of another lockdown and the reality of such that ended a month ago. Focusing on fear, rather than on the 100 vaccines being developed and countless treatments being approved, REAL updated death rates (0.02% for people under 49yo according to new CDC publisshed reports) , and people that have already become immune due to previous exposure. FEAR FEAR FEAR FEAR. India has an official cure. Russia said By August-September they will have vaccines being produced. The US aims for October. Emergency use vaccines i suppose, but it's good news! But hey, it's not good if the market rises. Trump gets better chances. Let's focus on fear instead and create fear propaganda.
Those that push fear and lockdowns on our economy are pure terrorists and criminals. Population will violently defend itself from any further attempts of lockdowns.
 Yea, but tomorrow is not that day
Sounds like it'll be another red day like today
IF second wave comes or if cases go higher, safest industry to invest will be pharma. Not only it will receive more orders but also a vaccine or tablet can change the fortune of the industry.
Please feel free to share your though as i am willing to correct myself if i am thinking wrong..
1999 all over again maybe worse
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