By Dhirendra Tripathi
Investing.com -- Buoyed by bank stocks, the S&P 500 jumped on Monday after President Joe Biden said he would nominate Federal Reserve Chair Jerome Powell to a second term. But the broad market gave back gains heading into the final minutes of trading.
The move, which has been anticipated for weeks, means Biden wants to chart a steady course through the economic reopening, choosing continuity over a candidate in Lael Brainard many had thought to be more to the liking of liberal progressives in Congress.
Bank stocks rose on the prospect of higher interest rates when the Fed moves to tame inflationary pressures growing in the economy. But that means tech stocks lagged, falling even as the broader index rose.
Biden’s choice in Powell was greeted favorably by investors. The president has a number of Fed appointments yet to make and has the opportunity to put his stamp on the institution even if Powell was nominated to lead the bank by his predecessor.
Brainard, who is currently a governor on the Fed’s board, will be nominated as vice chair. While some in the Senate said they wouldn’t support Powell’s nomination, the two are expected to get through confirmation without much of a battle.
Investors will have plenty of economic data to digest this week, which is abbreviated because of the Thanksgiving holiday in the U.S. on Thursday. The minutes of the Fed's latest meeting are due out Wednesday.
Here are three things that could affect markets tomorrow.
1. Zoom Video earnings
Pandemic darling stock Zoom Video Communications Inc (NASDAQ:ZM) is expected to report adjusted profit per share of $1.09 in the third quarter after today’s closing bell. Analysis tracked by Investing.com expect revenue of $1.02 billion. Investors will be listening for the company’s outlook considering people are returning to office settings and may not have the need for so much videoconferencing.
2. Medtronic earnings
Medtronic PLC (NYSE:MDT)’s second-quarter revenue is seen at $7.98 billion, with adjusted EPS coming in at $1.29. The medical device maker is seen as poised to benefit from a resurgence in elective surgeries, though a new spike in Covid cases could toss a wet blanket on that.
3. Tesla tweets
Tesla Inc (NASDAQ:TSLA)rose on Monday after CEO Elon Musk tweeted the company’s Model S Plaid is expected to hit the Chinese market “around March.” The world's second largest economy is the company’s biggest market outside the U.S. and it is also an export hub for the EV-maker.
Tesla launched the Model S Plaid in June and claims it to be the highest performing sedan ever built with acceleration up to 60 mph in 1.99 seconds and a 396-mile range.