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Day Ahead: 3 Things to Watch for August 5

imageStock MarketsAug 04, 2020 04:06PM ET

(C) Reuters.

By Christiana Sciaudone — Stocks closed slightly higher Tuesday after going a lot of nowhere. Signs of progress among U.S. lawmakers on the next round of coronavirus stimulus came and left with no clear outcome.

Lawmakers on both sides of the political aisle did hint that some progress had been made on talks concerning the next round of coronavirus aid, but their differences on the size of unemployment support, which was set at $600 a week in March, remained a key sticking point to get a deal over the line.

Some sectors tied to the progress of the economy like energy and real estate rallied to keep the broader market in the green.

Here are three things that may move markets tomorrow:

1. Economic indicators

American companies likely slowed hiring in July, thanks to Covid-19 keeping workers at home. The non-farm ADP jobs report is expected to show a gain of 1.5 million workers, down from 2.369 million in June.

The July ISM Non-Manufacturing survey may move to 55 from 57 in June. A reading above 50 percent indicates the non-manufacturing sector of the economy is generally expanding.

The Energy Information Administration reports crude oil inventories on Wednesday, with an expected draw of 3.3 million barrels, compared to last week’s draw of 10.6 million barrels.

2. Earnings run

Moderna (NASDAQ:MRNA) is forecast to report a loss per share of 37 cents on sales of almost $28 million. Shares are down 18% after hitting a high last month. The company is in phase 3 of a trial for a vaccine candidate for Covid-19, and is getting close to $1 billion for development of the prophylactic from the U.S. government.

Etsy (NASDAQ:ETSY) is forecast to publish earnings per share of 39 cents on revenue of $327 million. The stock hit a record earlier Tuesday.

Zynga (NASDAQ:ZNGA) reports on the heels of Take-Two (NASDAQ:TTWO)’s strong print. The video game developer is expected to report earnings per share of 8 cents on sales of $504 million. That will compare to earnings per share of 5 cents on revenue of $365 million for the second quarter of 2019.

CVS Health Corp (NYSE:CVS) should report earnings per share of $1.89 on revenue of $64 billion. Shares are up 24% since March.

Square Inc (NYSE:SQ)is expected to publish a loss per share of 5 cents on sales of $533 million for the quarter. The stock has 11 buy ratings, 14 holds and two sells.

3. Samsung (KS:005930) reveals new phone

Samsung will introduce five new devices at its online Unpacked event tomorrow, Engadget said. Three new phones, wireless headphones and a smartwatch are expected to be unveiled. While unlikely to elicit quite the same fanboy adulation as a similar Apple (NASDAQ:AAPL) event, consider this: Samsung shipped more phones than any other handset maker last year, followed by Huawei, according to Counterpoint Research.

Day Ahead: 3 Things to Watch for August 5

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