By Liz Moyer
Investing.com -- In typical pandemic fashion, private payroll numbers for August came in at less than half of expectations, igniting another stock market rally on Wednesday.
Markets reflect a topsy-turvy world where the latest moves are seemingly unconnected to reality.
The dollar surged against the EUR/USD, pushing Gold Futures down $30 after the yellow metal pierced through the $2,000 an ounce level last month. The dollar's move came on expectations the European Central Bank would inject more stimulus into the eurozone.
Crude Oil WTI Futuresprices sank nearly 3% after government data showed a steeper than expected drawdown in U.S. oil inventory last week. Stocks are soaring though data from the Federal Reserve shows the economic comeback slowed last month.
Congress continues to stall on another pandemic relief package that could put more money into consumer pockets this fall to spur spending. Big companies, meanwhile, continue to layoff thousands as earlier relief runs out. United Airlines Holdings Inc (NASDAQ:UAL) became the latest in that sector to announce it would furlough 16,000 workers by early October.
The Dow Jones Industrial Averagesurged nearly 500 points. The S&P 500 and NASDAQ Composite hit record highs, with Nasdaq pushing through 12,000.
Here are three things that could affect the markets tomorrow:
1. High expectations for stay-at-home boost at DocuSign
DocuSign Inc (NASDAQ:DOCU) is a beneficiary of stay-at-home orders that forced businesses to move online. Its shares are at all-time highs, hitting yet another 52-week high on Wednesday, and definitely got a jolt from better-than-expected earnings from Zoom Video Communications Inc (NASDAQ:ZM) earlier this week.
The software maker is preparing to report earnings on Thursday. Expectations are for per-share profit of 8 cents on revenue of $318 million.
2. Chipmaker Broadcom seen benefiting from cloud, 5G network trends
Broadcom Inc (NASDAQ:AVGO)also reports on Thursday. Chipmakers have benefited from a trend toward cloud computing and the anticipation of 5G network technology. That should help lift Broadcom's results above even lofty expectations.
The outlook, according to analysts tracked by Investing.com, is for profit of $5.24 on revenue of $5.7 billion.
3. More data on the state of the job market and service economy
The Federal Reserve said Wednesday that continued uncertainty and volatility last month related to the pandemic and its effects on consumer spending and business activity was widespread. A pickup in activity in May and June actually slowed more recently, it said in its periodic Beige Book.
The observations coincide with lower than expected private payrolls data for August. That sets up expectations for Thursday's weekly release of initial and continuing jobless claims, which have been running at elevated levels.
In addition, Thursday marks the release of the latest ISM non-manufacturing index, a measure of business activity in hard-hit sectors of the service economy.