By Liz Moyer
Investing.com -- Cyclicals popped on Monday, with financials, industrials and energy stocks on the rise as people grew more optimistic about an economic rebound.
The optimism comes even after last week’s data on jobs fell far short of expectations.
President Joe Biden pitched his jobs plan at a press conference on Monday, promising to make it easier for companies to hire workers and for people to accept work rather than live on unemployment insurance, which has been elevated since the pandemic. The president urged companies to make it easier for people to be vaccinated and to pay them more as an incentive to return.
Big tech fell as investors shied away from high growth stocks on fears the pace of inflation will eventually lead the Federal Reserve to raise rates.
Earnings season is winding down. Here are three things that could affect markets tomorrow:
1. Earnings
On Tuesday we get earnings from two companies that got a boost during the pandemic, when people hunkered down at home in comfy clothing playing video games.
Hanesbrands Inc (NYSE:HBI) is expected to report earnings per share of 26 cents on revenue of $1.5 billion. Electronic Arts Inc (NASDAQ:EA) is seen with EPS of $1.05 on revenue of $1.4 billion.
2. Business optimism
Also on Tuesday, the National Federation of Independent Business will release the Small Business Optimism index for last month. Analysts expect a reading of 101, which would be up from the 98.2 recorded for March. That comes out at 6:00 AM ET (10:00 GMT), At 10:00 AM ET, the JOLTs job opening numbers are expected to show 7.5 million openings.
3. Rising gasoline prices?
Gasoline RBOB Futuresfutures are also in focus with the ongoing shutdown of much of the Colonial Pipeline's operations. The major artery from the Gulf Coast to the East Coast for gas, diesel and other oil products was shut down on Friday after a ransomware attack.
Analysts believe a prolonged closure could lift prices at the pump above $3 for the first time since 2014 just as Americans take to the road for the unofficial start of summer on Memorial Day weekend.