3 things to watch on Investing.com

Dhirendra Tripathi

Investing.com-Concerns about the surge in cases related to the Delta variant of the super-infectious coronavirus led to the stock market’s worst trend since October last year, with the three major stock indexes plummeting.

Although last week’s earnings season started well, it was not enough to quell investors’ worries that the economic rebound might be interrupted, as the number of new coronary pneumonia cases in the United States surged to the highest level since mid-May, and the number of hospitalizations and deaths was also on the rise.

Although many of the latest cases are related to areas of the country with low vaccination rates, there are still concerns that even fully vaccinated people may contract or spread the virus.

The Professional Association of Pediatricians on Monday recommended that American school children wear masks in school this fall, regardless of the vaccine status, which contradicts some guidance from the Centers for Disease Control and Prevention.

Adding to Monday’s anxiety was the bullish agreement reached by members of the International Oil Cartel, who managed to put aside their differences over the weekend and agreed to increase oil production starting next month and implement all production cuts next year. The epidemic has reversed.

Oil prices, which have been rising this year, fell by more than 7% on Monday, but some people expect that if demand is not weakened by the surge in new coronavirus cases that cause companies to shut down again, oil prices will eventually rebound.

The earnings season continues this week. Here are three things that may affect the market tomorrow:

1. Streaming giants

According to analysts tracked by Investing.com, Netflix Inc (NASDAQ:) expects second-quarter earnings per share of $3.18 and revenue of $7.32 billion. Home streaming and entertainment are clearly the winners of the pandemic home lifestyle, but analysts will listen to Netflix’s outlook for the rest of the year.

2. Burrito profit

Chipotle Mexican Barbecue Company (New York Stock Exchange stock code:) Revenue for the second quarter was $1.88 billion, and earnings per share were $6.50. The popular burrito chain established new ways to attract hungry customers during the pandemic, including digital sales and drive-thru lanes. Now that people return to restaurants on their own, analysts expect strong growth in all channels.

3. Good news, bad news

United Airlines Holdings (NASDAQ:) expects revenue of US$5.25 billion in the second quarter and a loss of US$4.21 per share. The surge in travel demand this spring is now threatened by an increase in global cases of the new crown virus, with airline stocks falling alongside other travel-related stocks on Monday.