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Disney Cuts, Costco's Q, Rocket Zigzag: 3 Things to Watch

Published 2021-03-03, 05:13 p/m
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By Liz Moyer

Investing.com -- Stocks turned negative after energy and banks could no longer hold back the fallout from a slump in big tech.

Investors sold shares of the major tech companies like Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), both ending the day in the red along with other big tech stocks, even though the Federal Reserve again tried to reassure the market that wage pressures would not cause a spike in inflation.

The central bank’s Beige Book, which is a compilation of observations from the Fed’s 12 reserve banks through Feb. 22, showed the U.S. economic and labor market growth as well as inflation remained modest.

An unexpectedly weak private payrolls report also rattled hopes that the economic recovery was well on its way. 

More data on jobs -- specifically the number of new and continuing jobless claims -- will be released on Thursday, ahead of the closely watched government data on jobs due out on Friday.

Here are three things that could affect markets tomorrow:

1. Disney slashes its retail locations

Walt Disney Company (NYSE:DIS) said after the closing bell that it would cut 60 stores in North America, or 20% of its locations, as it focuses on e-commerce. Digital is a trend at Disney, which has also put a greater emphasis on its streaming operation to distribute its content rather than rely on traditional movie theaters, which have been restricted from operating fully because of public health directives. Shares of Disney are up 65% over the last year.

2. Retail earnings continue

Costco Wholesale Corp (NASDAQ:COST) earnings are due out on Thursday. Analysts tracked by Investing.com expect EPS of $2.44 on revenue of $43.7 billion. 

3. Have Redditors given up on Rocket?

Rocket Companies Inc (NYSE:RKT) has been on a dizzying ride over the last week, soaring and then plunging. Shares of the consumer lender are reported to be among those targeted by readers of a Reddit forum who are encouraging each other to bid up heavily shorted stocks in a battle with Wall Street pros.

Rocket fell 32% on Wednesday during regular hours after rising 71% on Tuesday. But then it was back up 2% in after-hours trading. People will be watching it tomorrow to see if the saga continues.

 

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