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Day Ahead: 3 Things to Watch for September 22

Published 09/21/2020, 04:03 PM
Updated 09/21/2020, 04:10 PM
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By Liz Moyer

Investing.com -- Political rancor over the open Supreme Court seat puts the prospect of fresh stimulus on hold, and that realization sent markets into a tailspin on Monday.

Justice Ruth Bader Ginsburg's death last week leaves a vacancy on the high court just as election season heads into its final weeks. That has ignited a fight on Capitol Hill about whether to delay a confirmation.

But that also means lawmakers are preoccupied with something else when people were still hoping for a new round of money to be pumped into the economy, prompting a furious round of selling not just stocks but gold and oil.

Federal Reserve Chairman Jerome Powell is scheduled to testify in Congress on Tuesday, existing home sales data are released and earnings from Nike and others are expected.

Here are three things that could move the markets tomorrow:

1. Mr. Powell goes to the Hill

Powell will head to Capitol Hill to testify before the Joint Economic Committee at 10:30 AM ET (1430 GMT). It is the first of three days of testimony on the Hill as investors await new insights on the economic recovery and possible additional stimulus.

Last week the Fed held rates steady at near zero and repeated its pledge to allow inflation to run above the 2% targeted rate to help boost growth.

2. Home sales expected to rise as people flee cities for suburbs

August existing home sales figures are due out at 10:00 AM ET (1400 GMT). Analysts tracked by Investing.com expect sales to rise 2.4% from July after increasing 24% in June.

Last week, data showed new home sales fell more than expected last month. But a wave of pandemic-driven relocations, many from city to suburb, is expected to continue as families cope with remote work and school. Shares of homebuilders have risen this year. KB Home (NYSE:KBH) will report earnings in the afternoon, and analysts expect profit of 53 cents a share on revenue of $888 million. Shares are up 13% year-to-date.

3. Earnings from AutoZone and Nike 

AutoZone Inc (NYSE:AZO) is expected to report earnings per share of $24.38 on revenue of $4.1 billion. Analysts are expecting comparable sales growth of 10%, according to Seeking Alpha.

Nike Inc (NYSE:NKE) is expected to report EPS of 44 cents on revenue of $8.9 billion. Shares are up 11% this year, near a 52-week high they hit earlier this month. Household stimulus payments sent shoppers looking for new athletic shoes and apparel.

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