Investing.com — Stocks reversed yet again on Tuesday after Federal Reserve Chair Jerome Powell wasn’t as aggressive about monetary policy as people thought he would be.
Technology stocks jumped after Powell said the central bank didn’t aim to undermine strong employment trends.
The Fed will begin removing some of the massive stimulus it unleashed on the economy to support it for the duration of the pandemic. Even though the virus hasn’t left us, the economic recovery has progress to where the Fed now forecasts three rate hikes this year.
Some private economists see the possibility of four rate increases this year. The Fed is also going to scale back the size of its bond purchases and the number of bonds it holds on its balance sheet.
Tech stocks have sold off in recent days out of fear the Fed would act too swiftly after the Fed’s meeting minutes from December focused on rising inflationary pressure.
On Wednesday, the government releases consumer price index readings from the latest month, with analysts expecting it to be 7% over last year.
And then later this week, earnings kick off with Delta Air Lines (NYSE:DAL) and Taiwan Semiconductor Manufacturing on Thursday and several big banks on Friday.
Here are three things that could affect markets tomorrow:
1. FANG bragging rights
Which company is the best FANG stock this year? Amazon.com Inc (NASDAQ:AMZN), according to Bank of America (NYSE:BAC). Analyst Justin Post told investors in a note on Monday that they expect several headwinds to ease for Amazon, and they have an outlook for “strong growth and margin expansion in 2023-2025 following a massive infrastructure investment cycle.”
2. Netflix outlook
Netflix Inc (NASDAQ:NFLX) is seen beating estimates when it reports fourth quarter earnings next week, according to Moness Crespi analyst Brian White. Analysts will be focused on growth in streaming, but the analyst believes the company should put that measurement aside. Stay tuned.
3. GM selling used cars
General Motors Company (NYSE:GM) is rolling out an online used vehicle dealership, because used cars have been such a hot market during the pandemic. The site is expected to launch in the spring and will offer GM and non-GM vehicles.
It will directly compete with companies such as Carvana Co (NYSE:CVNA) and CarMax (NYSE:KMX). With used cars making up a significant portion of vehicle sales, and more customers wanting to buy vehicles online, automakers are moving into the online market space. Ford announced the launch of its used car marketplace last year.
–Investing.com staff and Reuters contributed to this report