By Dhirendra Tripathi
Investing.com -- Relatively tame data on inflation for July and the prospect of more government spending on infrastructure for the next few years sent stocks on the S&P 500 and the Dow Jones Industrial Average roaring to new highs on Wednesday.
In the morning, data on consumer prices in July mostly met expectations and eased concerns that the Federal Reserve would act more quickly to tighten policy by easing off the bond buying activity that has helped the economy snap back from the pandemic.
The Senate has sent two spending plans, a $1 trillion bill on infrastructure and another $3.5 trillion budget including President Joe Biden’s antipoverty and climate initiatives, on for consideration in the House.
Nothing is guaranteed, but the ability of a divided Senate to at least get something on the table cheered sentiment.
The legislative efforts are lifting stocks of equipment makers, materials suppliers, steelmakers and other industrial, energy and manufacturing stocks.
On the commodities front, oil prices rose Wednesday, but the gain was partly held back by disappointing inventory data, which showed less of a drawdown than expected.
President Biden put pressure on the oil cartel led by Saudi Arabia and its allies to boost production, which would lower gas prices and take pressure off American household pocketbooks.
Jobless claims data for last week and producer price inflation are due out tomorrow. Here are three things that also could affect the markets.
1. Hospitality reading
Travel stock Airbnb Inc (NASDAQ:ABNB) is expected to announce a second-quarter loss per share of 36 cents on revenue of $1.26 billion. The hospitality sector has been struggling to come back from the pandemic, and analysts will be listening for the company’s outlook and any qualifications given the spread of the Delta variant of Covid-19.
2. Home delivery trends
DoorDash Inc (NYSE:DASH) is seen posting revenue of $1.1 billion and a loss per share of 6 cents for the second quarter, according to analysts tracked by Investing.com.
3. Streaming wars update
Walt Disney Company (NYSE:DIS) is expected to clock revenue of $16.76 billion and EPS of 54 cents in the third quarter. Analysts will be listening to the management’s outlook on theme parks and for any updates on the progress of its Disney+ streaming business, which has burst onto the scene since the pandemic forced studios to release new films in a less-than-traditional way.