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Investing.com — Blue chip stocks hit another record, their second of the year, while technology stocks slid and weighed down both the S&P 500 and the Nasdaq.
Investors had new data on Tuesday to analyze, showing that factory activity expanded while the labor market remained tight.
The World Health Organization said more evidence is emerging that the Omicron coronavirus variant is causing milder symptoms than previous strains, though it is highly infectious. New cases in the U.S. alone on Monday reached 1 million.
It was banks that helped lift the Dow Jones Industrial Average, with the sector adding 3.7%. Interest rates are expected to rise this year after the Federal Reserve said it would end its pandemic-era bond buying and begin raising rates, perhaps as many as three times this year. Minutes from its December meeting are expected to be released on Wednesday.
Reuters reported that new data showed U.S. manufacturing slowed in December amid some cooling in demand for goods, but investors found signs of supply constraints easing.
It remains a data-light week, and earnings have yet to begin in a big way. Here are three things that could affect markets tomorrow:
1. Airline stocks
Airline shares traded higher Tuesday as diminishing concerns about the impact of Omicron and a truce with telecom companies overcame the headwinds confronting the sector.
However, Covid-related absenteeism led thousands of additional U.S. flights to be canceled, and weather and Covid infections are expected to continue to vex airline schedules.
2. Communications truce
Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T) had an amicable settlement with U.S. authorities and airlines over the launch of new 5G services.
After first ignoring the advice of the Department of Transportation, both the firms agreed Monday to delay the rollout of a new 5G service until January 19. This is expected to give aviation regulators time to address safety concerns at airports arising from the use of new frequencies by 5G carriers. The telecom carriers have offered to reduce the power of their new 5G service for six months, beyond levels the companies had previously agreed upon.
The Federal Aviation Administration had prepared to issue flight restrictions that would have hampered both passenger and cargo flights in the country. That prospect is now off the table, at least temporarily.
3. Auto wars
Ford Motor Company (NYSE:F)plans to nearly double the output of its all-electric pickup F-150 Lightning.
The company said it will now make 150,000 units of the vehicle every year at its Dearborn factory in Michigan to meet soaring customer demand.
Beginning Thursday, the company will invite the first group of reservation holders to place their orders for the F-150 Lightning. Reservation holders are being asked to watch for an invitation via email or log into their Ford account over the next few months. Those who don’t receive invitations to convert for the 2022 model year will have an opportunity to order a future model year vehicle in due course, the company said.
