By Liz Moyer
Investing.com -- Tech stocks continued to climb to new records Tuesday, shrugging off fears about a second wave of Covid-19 infections that are weighing on other sectors exposed to the success of businesses reopening.
Investors appear to be betting that tech giants like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Netflix Inc (NASDAQ:NFLX) will come out of the pandemic ahead. The stocks hit fresh highs as home-bound consumers turned to the internet and streaming services to keep busy during lockdowns.
The reopening plans around the country were threatened by mounting new coronavirus cases. Government data on crude oil inventories – which investors use to judge whether business demand for fuel is rising or falling – is due out Wednesday.
Investors will also be watching to see if tech can continue its rally, along with financials. While stocks rose on Tuesday, the indexes had given back some of their gains by the closing bell.
Here are three things that could affect markets tomorrow.
1. More Information on Oil Inventory Gives Reading of Demand
The Energy Information Administration's crude inventory numbers for the week ending June 19 are due out at 8:30 AM ET (1230 GMT) on Wednesday. The closely watched number is used by investors to judge whether demand is rising or falling. On Tuesday, the industry's own weekly report showed a higher than expected increase in crude oil in storage, a potentially bearish sign.
2. Can tech giants continue their record-breaking climb?
FAANG giants hit new highs on Tuesday, pulling the NASDAQ Composite to its own record as tech investors seem to be unworried about possible interruptions to the economic recovery from Covid-19 shutdowns.
Investors will be looking to see if this group can keep up the momentum. Apple is surging after a bunch of announcements out of its Worldwide Developers Conference, including new operating systems for its iPhones and the announcement it would be using its own processing chips in new Mac computers.
Meanwhile, Netflix and Amazon also hit new highs.
3. Financial Stocks Could Be a Proxy For Economic Revival
Bank stocks are also surging on the prospect of more stimulus money on the way from Washington. That benefits big lenders like JPMorgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C), and Bank of America Corp (NYSE:BAC) because it puts money in the hands of businesses and consumers to spend more.
On Tuesday, Trump administration officials were busy shaking off mixed signals on China-U.S. trade and focused on getting out the word on stimulus. Treasury Secretary Steven Mnuchin appeared to cheer investors by saying a fourth round of stimulus, about $1 trillion, would be introduced in the next few weeks and aimed at getting people back to work.