By Liz Moyer
Investing.com -- Stocks surged ahead of Friday's job report as data showed services activity was stronger than expected in July.
The strong data on services threw some cool water on the idea that the U.S. was in the beginning of a recession, which helped lift tech stocks. Friday's job number could add more momentum to this trade, after job openings data this week showed a slight cooling in the labor market. Analysts expect the jobs report to show fewer positions created in July than June, but still a strong showing on low unemployment.
This trend comes despite layoffs in the tech sector, with Robinhood (NASDAQ:HOOD) Markets being the latest to slash headcount. Robinhood is cutting another 23% of its jobs after cutting 9% earlier this year. Like other tech companies, it is paring back because it grew too fast during the pandemic.
Investors won't get another crack at the Federal Reserve's official thinking on interest rates until its meeting in September, but Fed officials have been speaking publicly in recent days trying to quiet the notion that the central bank was getting ready to pause or slow down on its rate hikes.
More corporate earnings come out in the coming days, including from the retail sector, which could offer investors more clues on consumer behavior heading into the end of the summer.
Here are three things that could affect markets tomorrow:
1. Eli Lilly earnings
Eli Lilly and Company (NYSE:LLY) is expected to report earnings of $1.71 a share on revenue of $6.85 billion.
2. Toyota earnings
Toyota Motor Corporation ADR (NYSE:TM) is expected to report earnings of $3.78 a share on revenue of $60.75 billion.
3. ConocoPhillips earnings
Oil major ConocoPhillips (NYSE:COP) is expected to report earnings of $3.86 a share on revenue of $19.56 billion.