Oct. Sales, Industrial Production, Retailers: 3 Things to Watch

By Liz Moyer — Once again positive news on the vaccine front clashed with foreboding news about the spreading pandemic, but stocks won the day, anyway.

The surged to record levels after Cambridge, Mass., drug company Moderna Inc (NASDAQ:) said its vaccine candidate was more than 94% effective. That’s even better than last week’s news from drug giant Pfizer Inc (NYSE:) which said its candidate was 90% effective.

Now with two possible vaccines headed toward regulatory consideration for emergency use permission, the future looks a slight bit brighter.

The news comes as U.S. coronavirus cases continue to mount, hitting daily records and forcing local governments like El Paso, Texas, and Philadelphia to halt or reverse business reopening plans. California’s governor also put the brakes on most of that state again on Monday.

Putting a halt to the spreading virus is essential to keep businesses operating during the holiday season, which is a major driver of sales for many companies. 

We may get a glimmer of what is to come in retail sales and industrial production data set for release on Tuesday, alongside earnings from major retailers. 

Here are three things that might affect markets tomorrow:

1. Retail sales for October

are expected to slow down in October from the prior month, with analysts tracked by estimating a reading of 0.5%. That compares to 1.9% in September. The numbers are reported at 8:30 AM ET (1230 GMT).

Consumer spending is an important barometer of economic health, especially heading into holiday shopping season. Lower consumer spending could be an indication households are still struggling with pandemic-related factors like lost wages, as Congress continues to stall on new economic relief.

2. Data on production

A potentially more positive reading is due out at 9:15 AM ET (1315 GMT). for October is expected to increase 1% compared to a contraction of 0.6% the prior month. is seen coming in up 1%, from a contraction of 0.3% the prior month.

3. Home Depot , Kohls and Walmart

Three big retailers report earnings on Tuesday before the market opens.

Walmart Inc (NYSE:) is seen with earnings per share of $1.18 on revenue of $131.8 billion. Home Depot Inc (NYSE:) is expected to report EPS of $2.99 on revenue of $31.3 billion. Kohls Corp (NYSE:) is seen reporting a loss of 50 cents a share on revenue of $3.87 billion.


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