By Dhirendra Tripathi
Investing.com — Stocks surged on Monday after last week’s ugly end, with gains driven by energy and economically sensitive cyclicals.
Energy as a sector rose as investors continued to bet on higher oil demand. A return of Iranian supply was pushed out further after Ebrahim Raisi won the country’s presidential election and said he wasn’t going to negotiate just to negotiate. Bank of America (NYSE:BAC) estimates the price of a barrel of Brent crude, the international benchmark, could reach $100 next year, after rising this year as the global economy reopened. Brent Oil Futures was up about 2% on Monday.
The return of the bull market optimism comes after the worst week for the broader market since October after comments from Federal Reserve officials spooked the market.
Expectations for tighter monetary policy measures will weigh on valuations in 2022 but companies are expected to generate sufficient earnings to drive the broader market higher.
Here are three things that could affect markets tomorrow.
1. Powell visits Congress
Federal Reserve Chair Jerome Powell will face U.S. lawmakers in Congress on Tuesday to give them an update on the central bank’s support for the economy through the pandemic, as some Fed watchers grow worried that prices and inflation will rise.
2. Earnings from Plug Power
Plug Power Inc (NASDAQ:PLUG) reports first quarter earnings on Tuesday. Analysts tracked by investing.com expect it to report a loss of 8 cents a share on revenue of $72.16 million. Shares of the hydrogen fuel cell maker are down 12% this year.
3. More housing data
Existing home sales are expected to decline for the fourth straight month when the numbers for May come out on Tuesday. They are seen hitting 5.72 million for the month, lower than April’s 5.85 million. A surge in demand for homes in recent months has pushed up prices for lumber and other construction materials.
Powell on Hill, Plug Power, Existing Home Sales: 3 Things to Watch
Exxon to cut U.S. workforce by up to 10% annually – Bloomberg News
Wall Street ends sharply higher, led by surging Dow