By Dhirendra Tripathi
Investing.com -- Stocks notched more intraday record highs on Monday, fueled by technology as investors stopped worrying so much about the Federal Reserve’s eventual and expected move to taper its bond buying.
The S&P 500 and NASDAQ Composite both reached records and remained positive heading into the final minutes of trading. Apple Inc (NASDAQ:AAPL) jumped to an all-time high and other big tech stocks likeAmazon.com Inc (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) gained.
High-growth tech stocks do better in a low-rate environment because their value derives from future earnings, which are eroded as rates rise.
Fed Chair Jerome Powell said on Friday the central bank would continue to be cautious in its approach to tapering its stimulus program and that easing away from bond buying doesn’t mean a rate hike anytime soon.
Everyone is waiting for the big economic report of the week: Friday is the day the Labor Department issues the jobs report for August. It comes as the federal pandemic unemployment assistance is scheduled to expire in the states that haven’t stopped paying it already.
The jobs report, economists say, could set the stage for the Fed's Sept. 21-22 policy meeting.
That’s the blockbuster news of the week, aside from the recovery of the Gulf coast’s energy industry after Hurricane Ida slammed ashore over the weekend as one of the most powerful storms to hit the U.S. mainland. Millions are still without power in the region, and the oil and gas industry remains offline for the time being. Crude prices ticked only modestly higher on Monday.
Here are three things that could affect markets tomorrow:
1. Zoom earnings
Zoom Video Communications Inc (NASDAQ:ZM) is expected to announce after Monday's closing bell it had second-quarter earnings per share of $1.16 on revenue of $991.21 million. The company was one of the pandemic winners and analysts will be listening for its outlook now that people are preparing to return to school and office life.
2. Crowdstrike earnings
Crowdstrike Holdings Inc (NASDAQ:CRWD) is seen posting on Tuesday revenue of $323.25 million and earnings per share of 8 cents for the second quarter.
3. Consumer confidence
Consumer confidence is expected to see a sharp erosion in August. As per current estimates, the Conference Board is expected to report Tuesday a slip in its consumer confidence index to 124 for the month, down from 129.1 in July. The fall comes after the index rose for six straight months. The data are due to be released at 10:00 AM ET (1400 GMT).