Micron, Lululemon, Walgreens Boots Alliance: 3 things to watch

© Reuters

By Liz Moyer

Investing.com -- Buoyant bank stocks helped lift the Dow and S&P 500 on Monday as fears about the health of the sector eased, while rising bond yields weighed on tech stocks.

Investors are nearly evenly divided on what the Federal Reserve will do next. A little more than half of futures traders are betting on a pause at the Fed's meeting in May, while just under half believe there's another quarter of a percentage point hike in store. Pressure on the banking system, which is expected to result in a pullback in credit, is seen slowing the economy on its own without the Fed acting. But the central bank still wants to push inflation back down toward its 2% goal, and it still isn't there yet.

Still, Fed forecasts are for the terminal rate to top out around 5.1% this year, which implies another rate increase based on the current fed funds range. 

This week brings key data on inflation for February, along with home price data, weekly jobs data, and the last print of gross domestic product growth for the fourth quarter. The Fed will likely factor all of it into its next decision, while also balancing its view of the banking system.

Here are three things that could affect markets tomorrow:

1. Micron earnings

Chipmaker Micron Technology Inc (NASDAQ:MU) is expected to report a loss per share of 65 cents on revenue of $3.74 billion.

2. Lululemon earnings

Analysts expected athleisure wear maker Lululemon Athletica Inc (NASDAQ:LULU) to report earnings per share of $4.26 on revenue of $2.7B. Analysts will be listening to what the pandemic darling says about demand now that people have returned to work at their offices.

3. Walgreens earnings

Analysts expect drug store chain Walgreens Boots Alliance Inc (NASDAQ:WBA) to report earnings per share of $1.10 on revenue of more than $33.5B.