By Liz Moyer
Investing.com — U.S. stocks surged on Monday as a wave of tech mergers lifted the sector and erased some of last week’s sell-off.
Investors are awaiting the outcome of the Federal Reserve’s Open Market Committee meeting on Wednesday, when we will hear an update on the state of the economy from Chair Jerome Powell.
Big tech stocks rebounded after a flurry of weekend deals. Oracle Corporation (NYSE:) is on board to partner with the U.S. TikTok, just before President Donald Trump’s deadline to sever the popular social media app from its Chinese owner. Chip maker Nvidia Corporation (NASDAQ:)also bounced on a deal for the chip licensing company ARM Holdings (LON:).
This week features a dozen stock debuts in the biggest IPO rollout since last year. Earnings from Fed Ex and Adobe are also on tap, and Kraft Heinz updates investors on its outlook.
Here are three things that could affect the markets tomorrow
1. IPOs galore this week, including the biggest deal of the year so far
It’s the biggest week for new stock debuts since Uber (NYSE:) listed in May 2019. Twelve deals are lined up this week, including the highly anticipated IPO of software maker Snowflake.
In fact, according to IPO tracker Renaissance Capital, Snowflake will be the largest software IPO ever, twice as big as the 2007 listing of VMware Inc (NYSE:).
Snowflake raised its price range on Monday to $100 to $110 from an earlier range of $75 to $85, an indication of strong investor interest. It plans to offer 28 million shares in the $3 billion offering, the biggest deal of the year so far.
2. Earnings from two companies aided by the pandemic shutdowns
The pandemic and troubles at the U.S. Postal Service are expected to give a boost to package shipping giant FedEx Corporation (NYSE:). Analysts tracked by Investing.com expect earnings per share of $2.65 on revenue of $17.5 billion. The EPS target would be down from $3.05 last year, but e-commerce trends point to a favorable fall for the company.
FedEx shares are up more than 54% this year and rose slightly on Monday to a new 52-week high ahead of the release of earnings on Tuesday morning.
Software maker Adobe Systems Incorporated (NASDAQ:) is also on deck for earnings. Analysts tracked by Investing.com expect EPS of $2.41 on revenue of $3.2 billion. Its shares are up 47% this year and hit a 52-week high earlier this month.
The increased number of people working from home is boosting demand for Adobe’s Acrobat and Sign products, analysts noted.
3. Investors to hear what’s next for Kraft Heinz
Kraft Heinz Co (NASDAQ:) scheduled an investor meeting for Tuesday. Expect an update on new direction for the company, which has struggled with sales in the last few years. Competition against cheaper store brands is a challenge. Some analysts expect to hear about how Kraft intends to manage brands like Maxwell House and Ore-Ida, which trail private label brands, with an eye to a potential sale of underperforming units as the company streamlines.
Kraft is one of Warren Buffett’s biggest holdings through his conglomerate Berkshire Hathaway B (NYSE:). The shares are down 0.9% so far this year.
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