By Liz Moyer
Investing.com -- One warning from the social media app Snap (NYSE:SNAP) was enough to send stocks tumbling on Tuesday, led by tech shares, as investors worry about the possibility of a recession.
As retail earnings have shown this season, consumers are making choices with their discretionary spending. They aren’t buying televisions and home goods because they are spending on travel. They are forced to pay more money for food, fuel and other household staples.
Snap’s warning that macroeconomic conditions were deteriorating more quickly than it expected lit the advertising sector on fire on Tuesday, with a broad array of industry-related stocks falling on the fear that companies will start pulling their ad dollars.
Sales of new homes also plunged 17% in April, the fourth monthly decline in a row and what was also interpreted as a recession warning.
The market will get fresh data on consumer spending and income and inflation on Friday, and Wednesday the Federal Reserve will release the minutes of its latest meeting. Market watchers will be reading the minutes carefully to glean any extra hints about the policymakers’ thinking heading into next month’s meeting.
Here are three things that could affect markets tomorrow:
1. Nvidia earnings
Chipmaker NVIDIA Corporation (NASDAQ:NVDA) is expected to report earnings of $1.30 a share on $8.1 billion of revenue, and analysts will be listening to what it says about demand and supply trends.
2. Williams-Sonoma earnings
The kitchen and housewares retailer Williams-Sonoma Inc (NYSE:WSM) is expected to report earnings of $2.88 a share on revenue of $1.8 billion. Analysts will be looking to compare the results of these upscale and specialty retailers with the results of dollar store and discounting giants.
3. Dick’s Sporting earnings
Yet another retailer, Dick’s Sporting Goods Inc (NYSE:DKS), is expected to report earnings of $2.49 a share on revenue of $2.6 billion.