By Liz Moyer

Investing.com — Stocks in the United States roared after strong retail sales reports and assurances by Jerome Powell, Federal Reserve Chair, about central bank’s resolve to control inflation.

The April sales rose by 0.9% compared with the previous month. This is good news for retailers who are reporting earnings this week. Walmart Inc. (NYSE:) disappointed in its results, which were hurt by rising costs. Home Depot Inc (NYSE 🙂 reported record-breaking sales, and increased its 2022 guidance. We will have more retail reports coming out on Wednesday Target Lowe’s (NYSE 🙂 among other.

Powell stated Tuesday that the Fed had the “resolve to bring down inflation” and that he would not quit until there was clear proof that this is happening. All three indexes ended higher as a result.

Another sign for investors is that the Fed won’t attempt to raise rates quicker than the half point increments it has been signaling. While most people still believe the Fed will raise rates by this amount next month when they meet again, some fear a three-quarter-point increase.

However, analysts have lowered their projections of growth for this year in order to consider companies facing rising costs as well as ongoing supply issues.

Investors were also encouraged by the news that Covid-19 lockdowns will be lifted in China in coming weeks. These lockdowns raised concerns over a slowdown in the global economy. However, uncertainty remains from Russia’s war against Ukraine. 

Three things could impact the markets in tomorrow’s future:

1. Cisco earnings

According to analysts at Investing.com, Cisco Systems Inc (NASDAQ) will report earnings of 86c per share for revenue of $13.3 million. Analysts will pay close attention to what Cisco Systems Inc has to say about the company’s sales growth, as work-from home trend continues.

2. Lowe’s Outlook

Based on earnings results from Lowe’s (EPS: $3.23 per share on revenues of $23.7billion), analysts will listen for Lowe’s views about housing and construction trends.

3. Target reports

Target competitor Walmart is expected to announce EPS at $3.06 per share on revenues of $24.4 billion. Target may be observing any similarities in supply, costs and inventories that analysts will examine.