Sam Boughedda

Investing.com – U.S. stocks rallied heading into the close on Monday after being down sharply in afternoon trading as investors braced for Wednesday’s Federal Reserve interest rate decision.

The market is trying to shake off a dismal showing in April, when all three major indexes were weighed by concerns about economic growth slowing, rising inflation and Russia’s ongoing war in Ukraine.

A new flood of earnings is expected this week, including reports from drug makers and travel companies after last week’s heavy dose of technology reports. Retail earnings are expected to peak at the close of this cycle.

The Fed is expected to raise rates by a half-point, something that has pushed the yield on the Treasury back to 3%, where it hasn’t been since 2018. Investors will also hear from Fed Chair Jerome Powell who may offer clues about the future and the inner workings of the policy-making board.

The crucial monthly jobs report – this one for April – is also looming on Friday, providing a reading of the economy’s health. The ADP private payrolls will be released on Wednesday, while the Job Openings report is out in the early hours of Tuesday.

As it attempts to soften the landing of the economy, Fed is keeping an eye on both employment and consumer prices.

These are the three factors that will impact markets tomorrow.

1. Pfizer Earnings

Pfizer Inc. (NYSE:) will release its results before Tuesday’s open. Analysts polled by Investing.comEarnings per share expected to reach $1.52 for revenue exceeding $24.1 billion

2. Airbnb is rebounding

Airbnb Inc (NASDAQ:) Shareholders will hope that the company benefits from the anticipated travel bounceback after it reports. The company is expected to post a loss of 25c per share on $1.45billion in revenue, according to analysts.

3. Starbucks Outlook

Starbucks Corporation (NASDAQ) will soon release the earnings report for the quarter ended December 31, 2018. Investors will hope that the Covid-related Chinese lockdowns have not had an impact on Starbucks’ earnings. Starbucks is expected to post earnings per share at 60c on $7.62 billion in revenue, according to analysts.