By Yasin Ebrahim
Investing.com – US stocks rebounded sharply Monday following a slump last week, led by a rally in energy and technology.
Tuesday brings further insight into the housing market, and the impact of supply chain woes on retailers.
But oil prices will likely continue to dominate investor attention after staging a strong rally Monday. The jury is out on whether the rally in oil prices has staying power at a time when the Delta variant of COVID-19 continues to cloud the outlook on oil demand.
1. Earnings on Watch: Best Buy , Nordstrom
Best Buy (NYSE:) will report Q2 earnings before the opening bell Tuesday, against tough comps as the prior-year’s Q2 results included cost cuts that helped boost margins.
Still, the backdrop of a robust housing market and strong demand for tech is expected to have boosted the retailer’s second-quarter results.
Best Buy is expected to of $1.89 on revenue of $11.49B.
Nordstrom Inc (NYSE:) will report Q2 results after the closing bell, with its update on outlook likely to garner investor attention.
Earlier this year, the department store chain’s quarterly results stoked worries that it was falling behind its rivals. It reaffirmed full-year guidance just as its rivals were painting a more optimistic outlook.
Nordstrom reaffirmed its fiscal 2021 outlook for revenue to grow by more than 25%, and flagged labor and shipping costs as key headwinds.
The company is expected to $0.27 on revenue of $3.32B.
Medtronic (NYSE:), Intuit (NASDAQ:), and Pinduoduo (NASDAQ:) are also among the notable names set to report quarterly results.
2. API Crude Inventories in Spotlight
Following the Energy Information Administration’s report last week of a larger-than-expected draw in stockpiles, investors will look to the for further clues on domestic supplies.
The API is expected to report that weekly U.S. crude stockpiles fell about 1.2 million barrels. The report comes a day before the official government weekly petroleum data.
Crude oil prices soared Monday, supported by weakness in the dollar, and signs that China is getting handle on the Delta variant of COVID-19, easing fears of a prolonged setback for travel-infused energy demand.
3. Housing Activity Picking Up, Again?
The Commerce Department releases its new home sales data at 10am ET (2pm GMT).
On average, economists expect that monthly rose 3% in July following a 6.6% decline in June. On a seasonally adjusted annual rate new home sales are to 700,000 from 676,000 in June, according to forecasts compiled by Investing.com.
Some suggest, however, there could be a negative surprise following data showing a jump in mortgage rates to a one-month high.
“As for new home sales, expectations are for a small uptick … [but] mortgage applications suggest a fourth month in sales decline should be expected,” National Australia Bank said in a note.
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