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Day Ahead: 3 Things to Watch for August 12

Published 08/11/2020, 04:01 PM
Updated 08/11/2020, 04:01 PM
© Reuters.

By Christiana Sciaudone

Investing.com  -- Wall Street turned negative in the last hour of trading Tuesday, after spending most of the time in the green. 

Investors have been clinging to the optimistic view of things, with a slowdown in Covid-19 infections, Russia announcing a coronavirus vaccine, and lawmakers still dawdling on rolling out more stimulus.    

Financials had led the broader move higher, thanks to a jump in banks following a move higher in bond yields. Travel stocks had traded up, but closed mix, with Delta Air Lines Inc (NYSE:DAL) slightly higher and American Airlines (NASDAQ:AAL) and United Airlines Holdings Inc (NASDAQ:UAL)reversing gains.

Tech lagged the rally as the rotation from growth into cyclical stocks – those that tend to outperform in a favorable economic backdrop – saw investors ditch Amazon (NASDAQ:AMZN) to Facebook (NASDAQ:FB). 

U.S. President Donald Trump has said he was seriously mulling a move to cut taxes on capital gains. 

Here are three things that may move markets tomorrow:

1. Oil data 

The Energy Information Administration is set to report crude oil inventories on Wednesday at 10:30 AM ET (1430 GMT). Analysts tracked by Investing.com forecast a draw of 3 million barrels, compared to the previous week's draw of more than 7 million barrels.

Opec's Monthly Oil Market Report will also be published.

2. More tech earnings

Cisco Systems (NASDAQ:CSCO) is expected to report earnings per share of 74 cents on sales of $12 billion. Results have beat the estimates over the past 10 quarters. Shares are trading at about the same level since Jan. 1.

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Lyft (NASDAQ:LYFT) may report a loss per share of $1.07 on sales of $340 million. Last week, rival Uber (NYSE:UBER) reported gross bookings down 35% year-over-year, and revenue down 29%. Shares are down almost 30% since January.

Tencent Holdings Ltd ADR (OTC:TCEHY) is forecasted to report earnings per share of 41 cents on sales of $16 billion. The Chinese web company may be out of favor with U.S. President Donald Trump, but investors seem to be shrugging tensions off. Shares are up about 37% this year.

3. Economic data

The Core Consumer Price Index (CPI) is expected to have risen 0.2% in July, the same as in June. The inflation measure shows the changes in the price of goods and services, excluding food and energy. A higher than expected reading should be taken as positive/bullish for the dollar, while a lower than expected reading should be taken as negative/bearish.

 

 

 

 

 

 

Latest comments

the least of the world problems is vir(US) while we still tolerate leaders like Putin, Trump, Erdogan etc
you can add Belarus leader
And Xi
why would you really believe Vladimir has a vaccine when we all know it was rushed out and is only a political move. Its insane how investors just believe anything and start selling off.
Putin had greeting by the fake propaganda....
Vadim Tarasov a top scientist at Moscow’s Sechenov University, where the trials took place, said Russia the country had a head start as it has spent the last 2 decades dedicating significant resources to the virus. The technology behind the Russian vaccine is based upon adenovirus, otherwise known as the common cold.Created artificially, the vaccine proteins replicate those of COVID-19 and trigger an immune response similar to that caused by the coronavirus itself. Whats even crazier? Putin had his own daughters vaccinated! One breaking out w only a mild fever.
trump jr
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