By Sam Boughedda
Investing.com – Stocks went on a rollercoaster ride on Tuesday that left them in the red as of late trading, even as the yield on the benchmark 10-year Treasury eased back.
Tech stocks had surged earlier in the session on the rollback in the 10-year yield, which moves inverse to price.
The move comes just as a spate of S&P 500 will report earnings, starting with JPMorgan and Delta Air Lines on Wednesday.
Banks are seen as beneficiaries of a rising rate environment, but market volatility could dampen capital markets and investment banking activity for the big Wall Street firms, most of which report this week. The flip side is surging energy and commodity prices could have boosted trading.
Airlines are also benefiting from the rebound in travel, though it has had its disruptions as well. American Airlines Group (NASDAQ: AAL ) updated its outlook to be slightly more positive than expected, and Delta is expected to give an outlook on summer travel trends.
Inflation is running at 40-year highs, and the Federal Reserve is likely to take that into account when it meets in a few weeks to decide its next policy action. Most agree that will be a half-point rate hike and a plan to start cutting back its $9 trillion balance sheet.
Much of the uncertainty in the markets since February has been the economic repercussions of Russia’s war on Ukraine. President Vladimir Putin said peace talks with Ukrainian counterparties hit a “dead end” and he promised to continue Russia’s fight, sending oil prices back up above $100 a barrel.
Here are three things that could affect markets tomorrow:
1. JPMorgan earnings
JPMorgan Chase & Co (NYSE: JPM ) will also report on its latest quarter before the open, with analysts tracked by Investing.com forecasting earnings per share of $2.70 on revenue of $30.63 billion.
2. Delta Air earnings
Delta Air Lines Inc (NYSE: DAL ) will report earnings before the opening bell Wednesday, and while international travel trends seem to be on the up, Delta shareholders will be looking for a boost. Analysts polled by Investing.com expect Delta to report earnings per share of $1.33 on revenue of $8.74 billion.
3. Producer prices
At 8:30 AM ET the U.S. will report the month over month producer price index for March. Analysts expect PPI to grow to 1.1%, above the previous reading of 0.8%.
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