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Investing.com — Markets closed a tad lower on Thursday amid stimulus (again!) optimism.
This evening, President-elect Joe Biden is set to unveil a more than $1 trillion package to boost the economy. The fiscal spending package will likely include proposals to boost direct payments to Americans, state and local aid, and funding for the distribution of vaccines.
Investor focus will likely center on the size of the package and updates on potential tax hikes to offset a $1.5 trillion infrastructure and healthcare package expected later this year, Morgan Stanley (NYSE:MS) said.
Federal Reserve Chairman Jerome Powell reiterated earlier that the central bank would continue to keep the monetary spigot wide open. This morning, the weekly jobs report highlighted the need for further support as jobless claims surged to a more than four-month high of 965,000, above economists’ forecast of 795,000.
Here are three things that may move markets tomorrow:
1. Bank earnings are back
It’s that time of year again, when big banks start rolling out their results. JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are up first. Expect to hear big trading numbers from JPMorgan and Citi that help to offset a drop in net income. Commentary on the outlook for 2021 will also be of keen interest.
2. Retail sales
Retail sales for December will be widely watched to see if holiday shopping picked up late in the month. November’s number plunged from the previous month, and economists aren’t expecting much as — tell us if you’ve heard this before — coronavirus cases increased and lockdowns intensified. Consensus calls for sales to be flat, after the previous month’s 1.1% decline. That’s due at 8:30 AM ET.
3. Other economic data
Empire manufacturing, producer prices and the University of Michigan Sentiment are also due. The Empire number, which covers the hard-hit New York region, is expected to come in at 6.0 compared to the prior month’s 4.9 when it hits at 8:30 AM ET (1230 GMT). Producer prices (9:15 AM ET) are expected to increase 0.4%. The Michigan consumer sentiment survey (10 AM ET) is expected to take a modest tick down to 79.5 from the prior 80.7 reading.
