By Dhirendra Tripathi
Investing.com -- Stocks fell Thursday, especially technology shares, after central bankers in the U.S. and Europe signaled different approaches to combating surging prices while trying to help their economies recover from the pandemic.
The U.S. Federal Reserve on Wednesday decided to hold rates steady for now but hastened its efforts to wind down monthly bond buying by spring, which would clear the way for three rate hikes next year.
Meanwhile, the Bank of England said Thursday it would raise its benchmark rate, and the European Central Bank said it would phase out bond buying but increase other stimulus efforts.
Many wondered if the so-called “Santa rally” could sustain itself after the quick pivot of policy makers to taming inflation even as a new variant of coronavirus threatens to upend travel and business.
The Omicron variant has stoked worries that the economic recovery could suddenly reverse, though vaccines and boosters have shown some effectiveness in holding back serious illness.
On Thursday, data showed new claims for unemployment benefits ticked higher slightly last week though still remain far below the pandemic peak.
Homebuilder Lennar Corporation (NYSE:LEN)fell after reporting higher lumber costs and supply chain issues.
Here are three things that could affect markets tomorrow:
1. Adobe tumble
Adobe Systems Incorporated (NASDAQ:ADBE) tumbled 9% Thursday after the company’s forecast for 2022 revenue came in short of expectations.
The design software-maker expects revenue to hit $17.9 billion in the ongoing financial year, up over 13% year-on-year but sharply slower than the 23% rate the 2021 revenue grew to top $15 billion.
According to Bloomberg estimates, the company was expected to peg its annual forecast at $18.2 billion.
2. Breadstick, anyone?
Darden Restaurants Inc (NYSE:DRI) will report its second-quarter numbers Friday. The full-service dining chain is expected to report a profit per share of $1.44 on revenue of $2.23 billion.
3. RV earnings
Winnebago Industries Inc (NYSE:WGO) is seen reporting a first-quarter revenue of $1.04 billion and profit per share of $2.36.